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India's banks accept major loan cuts in corporate insolvency, with most cases taking over 270 days.
India's banks have taken a 72% reduction on loans in corporate insolvency cases, with over 71% of cases taking longer than 270 days, leading to more liquidation orders.
The Insolvency and Bankruptcy Code (IBC), introduced in 2016 to resolve cases within 270 days, aims to extract better value for lenders.
In the second quarter of 2024-25, creditors realized a record Rs3.5 lakh crore through successful resolutions, but the process delays and high haircuts persist.
ICRA suggests improvements like pre-packaged insolvency processes could help.
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Los bancos de la India aceptan importantes recortes de préstamos en la insolvencia empresarial, con la mayoría de los casos que tardan más de 270 días.