The Finance Ministry has advised banks to adopt a collaborative and proactive approach in resolving pending Insolvency and Bankruptcy Code (IBC) cases to maximise asset value, improve recoveries and ensure time-bound resolution of stressed assets.
The direction came during a review meeting chaired by Financial Services Secretary M. Nagaraju, who assessed the progress of major insolvency cases currently pending before the National Company Law Tribunal (NCLT .
Review of High-Value Insolvency Cases
According to a statement issued by the Ministry of Finance (India), around 20 high-value stressed accounts have already been resolved through admission, assignment or disposal at the tribunal. These outcomes were achieved through coordinated efforts between banks, financial institutions and other stakeholders involved in the insolvency process.
The meeting also involved a detailed review of the top 20 cases awaiting admission and 10 major cases currently under resolution before the NCLT. Officials discussed strategies to accelerate proceedings and ensure quicker outcomes in these high-value matters.
Push to Reduce Adjournments and Procedural Delays
During the meeting, banks were urged to minimise adjournments and procedural delays while filing applications under the Insolvency and Bankruptcy Code (IBC) . The ministry emphasised that timely filing and proactive coordination among lenders are critical for maintaining the effectiveness of the insolvency framework.
Banks were also encouraged to ensure that Corporate Insolvency Resolution Process (CIRP) applications are filed promptly and pursued efficiently to prevent further erosion of asset value.
Monitoring by Public Sector Bank CEOs
The ministry advised the chief executives of all public sector banks (PSBs) to closely monitor the progress of key insolvency cases pending before the NCLT. Continuous oversight by bank leadership, officials noted, will help remove bottlenecks and improve recovery outcomes.
In addition, several operational and procedural issues related to pending insolvency matters were discussed during the review to ensure faster progress in the resolution process.
Strengthening the Insolvency Ecosystem
The government's push reflects its broader objective of strengthening the insolvency ecosystem and improving recovery rates under the IBC framework. Faster resolutions not only help lenders recover dues but also preserve asset value and support economic stability.
With large corporate insolvency cases often involving multiple lenders and complex legal proceedings, the ministry's emphasis on coordination and accountability is expected to play a key role in speeding up outcomes at the NCLT.
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