Shravan Shetty, managing director at consultancy firm Primus Partners, attributed the low recovery to legal delays that have caused asset quality to further deteriorate, especially in the manufacturing sector. Also, uncertainties about a sustained demand revival have “resulted in difficulty in defining a turnaround roadmap, causing reduced interest from potential buyers”, Shetty said.

“The government should increase legal capacity to deal with IBC cases while strengthening the IBC process by reducing options to go to court against the process,” Shetty added.