The average time taken for resolution or liquidation of bad loans facing corporate insolvency resolution process (CIRP) has increased to a three-year high for all stakeholders in the first quarter of the current fiscal, says a India Ratings and Research report.
The timelines for the resolution of cases under CIRP or Insolvency and Bankruptcy Code (IBC) continue to increase for operational creditors (OCs) and financial creditors (FCs) during the June quarter.
For the CIRP yielding resolution process, the timeline recorded for Q1 of FY24 has been the highest at 635 and 643 days for OCs and FCs, respectively, since FY21. It has seen a significant jump over the same quarter of the previous fiscal (OCs: 555, FCs: 552), the report said.