NEW DELHI, Mar 30: Finance and Corporate Affairs Minister Nirmala Sitharaman on Monday told the Lok Sabha that the Insolvency and Bankruptcy Code (IBC) has played a crucial role in improving the health of the country’s banking sector, particularly in recovering non-performing assets.
Piloting a bill to further amend the IBC, the minister said companies have shown better performance and improved corporate governance after undergoing the insolvency resolution process.
She made these remarks while replying to the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, as reported by the Select Committee. The Bill proposes 12 amendments to the IBC, which was originally enacted in 2016.
Sitharaman noted that the Code has significantly contributed to strengthening the banking sector, adding that more than half of the non-performing assets have been recovered by banks through the resolution mechanism.
The government had introduced the Bill in the Lok Sabha on August 12, 2025, proposing several changes, including measures to reduce the time taken for admission of insolvency resolution applications.
The legislation was later referred to a Select Committee, which submitted its report in December 2025. The IBC has been amended seven times so far. (Agencies)
