• After slowing in the pandemic period of FY21 and FY22, the number of insolvency cases referred has increased
    by 24% y-o-y in Q4FY23. However, despite the increase, the number of cases admitted to the insolvency
    process continued to be lower compared to earlier quarters in FY20. The distribution of cases across sectors
    continues to remain broadly similar, compared to earlier periods given the extended resolution timelines.
  • The overall recovery rate till Q4FY23 was 31.82% implying a haircut of approximately 68%. The cumulative
    recovery rate has been on a downtrend, decreasing from 43% in Q1FY20 and 32.9% in Q4FY22 as larger
    resolutions have already been executed and a significant number of liquidated cases were either BIFR cases
    and/or defunct with high-resolution time, coupled with lower recoverable values. However, it has improved
    sequentially from Q3FY23 (30.4%).