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Monetary Management and Financial Intermediation 153

4.60 Resolution: The Code has rescued 308 CDs as on December 2020 through resolution
plans. They owed ` 4.99 lakh crore to creditors. However, the realisable value of the assets
available with them, when they entered the CIRP, was only ` 1.03 lakh crore. Under the Code,
the creditors recovered ` 1.99 lakh crore, which is more than 193 per cent of the realisable
value of these CDs. The recovery for financial creditors (FCs), as compared to their claims,
was found to be more than 43 per cent for all the years since the inception of the Code. The
Code has facilitated the recovery of NPAs by banks. RBI data indicates that as a percentage
of claims, scheduled commercial banks (SCBs) have been able to recover 45.5 per cent of the
amount involved through IBC for the financial year 2019-20, which is the highest as compared
to recovery under other modes and legislations (Figure 23). Further, the amount recovered by
SCBs under IBC was ` 1.73 lakh crores which is more than all the amount recovered by all other
alternative mechanisms combined for 2019-20.

Figure 23: NPAs of SCBs Recovered through Various Channels

Source: Off-site returns, RBI and IBBI
Note: P: Provisional

Box 2. Status of Twelve large accounts

Since a few cases accounted for a large proportion of money involved in the resolution process,
the resolution process of 12 large accounts was initiated by banks, as directed by RBI in June
2017. Together they had an outstanding claim of ` 3.45 lakh crore as against liquidation value
of ` 73,220 crores. Of these, resolution plan in respect of eight CDs have been approved and
orders for liquidation have been passed in respect of two CDs. Thus, CIRPs for two firms and
liquidation in respect of two firms are ongoing and are at different stages of the process. The
status of the 12 large accounts is presented in Table A.