India’s Insolvency and Bankruptcy Code Completes a Decade on 28 May 2026

On 28 May 2026, India’s Insolvency and Bankruptcy Code (IBC) completes a full decade since it was enacted in 2016. Aimed at consolidating and amending laws relating to the reorganisation and insolvency resolution of corporate persons, partnership firms and individuals “in a time-bound manner for maximisation of the value of assets”, the Code introduced a structured, creditor-driven framework with the Insolvency and Bankruptcy Board of India (IBBI) as the regulator and the National Company Law Tribunal (NCLT) as the adjudicating authority.

Ten years on, the impact on India’s banking system is significant. Gross non-performing assets (GNPAs) of Scheduled Commercial Banks, which peaked at over 11.5 per cent in FY18 following the Reserve Bank of India’s Asset Quality Review, have fallen to around 2.0–2.3 per cent in FY26. Net NPAs are now near 0.5 per cent, among the lowest in decades. The “dirty dozen” cases identified by RBI in 2017 — including Bhushan Power & Steel, Essar Steel India, Monnet Ispat & Energy and Electrosteel Steels — were largely resolved through IBC, leading to new ownership for stressed assets.

However, the implementation record falls short of the original design. The 330-day time limit for completing the Corporate Insolvency Resolution Process (CIRP), including extensions, has been observed more in the breach than in practice. Long-drawn legal battles, fewer-than-needed NCLT benches and divergent interests of creditors have led to delays and value-erosion. The Code has been amended seven times in ten years, and the government has signalled a fresh “IBC 2.0” package, including a creditor-led, group-insolvency framework and mediation as an early option, currently under discussion.

For exam aspirants, the milestone connects the IBC’s legal architecture (IBBI, NCLT/NCLAT, Resolution Professionals, Committee of Creditors), banking reforms (PCA framework, recapitalisation, asset quality review), and the broader theme of “ease of doing business” and credit discipline in the Indian economy.