The realisations under the Insolvency and Bankruptcy Code (IBC) has declined to around 25% as of September 2025 from 30% in the first quarter of FY26, reflecting the need to improve effectiveness of IBC in the resolution processes, said India Ratings and Research in a report. The agency said that the ratio of resolution to liquidation cases also fell to 0.7 times in September end 2025 in comparison to 0.9 times in the quarter prior to that. A low resolution-to-liquidation ratio points to a lesser number of business turnarounds through IBC as compared to the outright asset sales. What did the report say? “Legacy issues continue to weigh on the system. Insolvency timelines remain stretched and are at record-high level, mainly due to capacity constraints at adjudicating authorities, frequent litigation, and uneven execution across jurisdictions. Delays in admission, limited bandwidth at NCLT benches, and procedural challenges continue to erode value in stressed assets and lengthen the resolution cycle,” the report said.