The number of cases admitted for Corporate Insolvency Resolution Processes (CIRPs) reduced 85% to 161 cases in H1FY21 compared with 889 cases admitted in H1FY20.
The cumulative share of operational creditors increased from 51% at the end of Q2FY20 to 63% at the end of Q2FY21, while financial creditors' share declined to 35% against 47% at the end of Q2FY20. The share of corporate debtors remained largely at similar level compared with the previous year.
The manufacturing sector accounts for the highest share at 41% of the overall cases, followed by the real estate (20%), construction (11%) and trading sectors (10%).
48% of the cases continue to remain in resolution process. 1,025, which constitutes 26% of the total cases admitted, have ended in liquidation. Around 12% (473 CIRPs) of the cases have been closed on appeal or review or settled. 7% of the cases have been withdrawn under Section 12A.
In the past, recovery rate was 26%. Post implementation of the IBC, the overall recovery rate has improved to 43.6%. However, the recovery for Q2FY21 has dipped to 20.6%, which is significantly lower than 64.1% reported in quarter ended March 2020.