IBC recovery best in Q4

Banks could see one of the best quarterly recoveries after the Covid-19 crisis in the fourth quarter of FY23 under the Insolvency and Bankruptcy Code (IBC), 2016, following resolution of Sintex Industries and Reliance Home Finance.

Monies aggregating about Rs. 6,600 crore, are expected to be received from the resolution of Sintex Industries and Reliance Home Finance via the corporate insolvency resolution process (CIRP) under IBC from successful resolution applicants Reliance Industries Ltd (RIL) – Assets Care & Reconstruction Enterprise (ACRE) combine and Authum Investments and Infrastructure, respectively.

This could result in reversal of provisions, thereby boosting banks’ bottomline, ad improve the asset quality parameters further.

Banks will be recovering about 48 per cent of the claimed amount of about Rs. 7,800 crore from the resolution of Sintex industries.