New Delhi, March 30 Finance and Corporate Affairs Minister Nirmala Sitharaman stated in the Lok Sabha on Monday that the Insolvency and Bankruptcy Code (IBC) has been a key and very important factor in improving the health of the country's banking sector, including the recovery of non-performing assets.
While piloting a bill for further amending the IBC in the Lok Sabha, the minister emphasized that companies have been performing well and their corporate governance practices have also improved after going through the insolvency resolution process.
She made these remarks while responding to the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, as reported by the Select Committee.
The Bill proposes 12 amendments to the IBC, which came into force in 2016.
The IBC has been a key and very important factor in improving the health of the country's banking sector, Sitharaman said, adding that banks have recovered more than half of the NPAs (Non-Performing Assets) through the resolution process.
On August 12, 2025, the government introduced the Bill in the Lok Sabha to amend the Insolvency and Bankruptcy Code (IBC), proposing a range of changes, including provisions to reduce the time taken for the admission of insolvency resolution applications.
The Bill was referred to a select committee of the Lok Sabha, which submitted its report in December 2025.
The IBC has been amended seven times so far.