IIMB study featured by IBBI for insights on behavioural impact of Insolvency and Bankruptcy Code (IBC)
The research study was undertaken by the Centre for Capital Markets and Risk Management (CCMRM)
22 May, 2025, Bengaluru: The Insolvency and Bankruptcy Board of India (IBBI) has featured a research study by the Centre for Capital Markets and Risk Management (CCMRM) on its official platform.
The study ‘Behavioural Impact of IBC’ submitted to IBBI was conducted by Prof. Jayadev M, Chairperson, CCMRM; Prof. Abhinav Anand, F&A area; Dr. Aishwarya Krishna, Research Consultant, CCMRM; and IIMB PGP and PhD programme alumnus Prof. Srijith Mohanan of JAGSoM.
The study assesses the effects of the Insolvency and Bankruptcy Code (IBC) on borrower behavior, credit discipline, and financial outcomes. Using datasets from NeSL (2018–2024), IBBI (2017–2023), RBI, and CMIE Prowess (2010–2024), it finds that IBC has significantly improved borrower discipline, reduced loan delinquencies, and enhanced the pace of debt resolution. Notably, observing an improvement in the credit culture of corporates, the average duration of overdue corporate loans fell sharply from 248–344 days to just 30–87 days.
The study also links IBC with better credit culture, a decline in gross NPAs from 11.2% in 2018 to 2.8% in 2024, and improved governance among resolved firms, including a higher share of independent directors.
IIMB study featured by IBBI for insights on behavioural impact of Insolvency and Bankruptcy Code (IBC)
The research study was undertaken by the Centre for Capital Markets and Risk Management (CCMRM)
22 May, 2025, Bengaluru: The Insolvency and Bankruptcy Board of India (IBBI) has featured a research study by the Centre for Capital Markets and Risk Management (CCMRM) on its official platform.
The study ‘Behavioural Impact of IBC’ submitted to IBBI was conducted by Prof. Jayadev M, Chairperson, CCMRM; Prof. Abhinav Anand, F&A area; Dr. Aishwarya Krishna, Research Consultant, CCMRM; and IIMB PGP and PhD programme alumnus Prof. Srijith Mohanan of JAGSoM.
The study assesses the effects of the Insolvency and Bankruptcy Code (IBC) on borrower behavior, credit discipline, and financial outcomes. Using datasets from NeSL (2018–2024), IBBI (2017–2023), RBI, and CMIE Prowess (2010–2024), it finds that IBC has significantly improved borrower discipline, reduced loan delinquencies, and enhanced the pace of debt resolution. Notably, observing an improvement in the credit culture of corporates, the average duration of overdue corporate loans fell sharply from 248–344 days to just 30–87 days.
The study also links IBC with better credit culture, a decline in gross NPAs from 11.2% in 2018 to 2.8% in 2024, and improved governance among resolved firms, including a higher share of independent directors.