2022-23 saw a sharp rise of cases referred to debt recovery tribunal (DRT). Amount involved in the DRTs shot up to Rs 4.02 trillion in FY23 compared to Rs 69,000 crore.
However, the amount recovered via DRTs fell to 9.2% in FY23 compared to 17.5% in the previous year. As a result, recovery of non-performing assets fell to 15% from 17.6% in FY22 .
Recoveries via IBC were back to over 40% in FY23 after two lackluster years.
Except for FY20, total recoveries via various channels as percentage of amount involved stayed around mid-teens levels. [Table 3]
Another aspect of stressed resolution – sales to asset reconstruction companies – shot up in FY23, mainly due to assets sold to newly operationalised bad bank, National Asset Reconstruction Co Ltd (NARCL).
First Published: Dec 31 2023 | 11:10 PM IST