Chennai, May 16 : The number of insolvency cases referred under the Insolvency and Bankruptcy Code (IBC) has gone up by 24 per cent in Q4FY23 after a slowdown in FY21 and FY22, said CARE Ratings. According to the credit rating agency, the distribution of cases across sectors continues to remain broadly similar, compared to earlier periods given the extended resolution timelines. In a report, CARE Ratings said the overall recovery rate till Q4FY23 was 31.82 per cent implying a haircut of approximately 68 per cent. The cumulative recovery rate has been on a downtrend, decreasing from 43 per cent in Q1FY20 and 32.9 per cent in Q4FY22 as larger resolutions have already been executed and a significant number of liquidated cases were either Board for Industrial and Financial Reconstruction (BIFR) cases and/or defunct with high-resolution time, coupled with lower recoverable values. However, it has improved sequentially from Q3FY23 (30.4 per cent), CARE Ratings said. According to the report, of the total 6,567 cases admitted into Corporate Insolvency Resolution Process (CIRP) at the end of March 2023: Only 10per cent% have ended in approval of resolution plans, while 31 per cent remain in the resolution process vs. 35 per cent as of the end of March 2022. 2,030 have ended in liquidation (30.9 per cent of the total cases admitted). Meanwhile, 77 per cent of such cases were either BIFR cases and/or defunct. These cases had assets which had been valued at less than 8 per cent of the outstanding debt. Around 15 per cent (959 CIRPs) have been closed on appeal/review/settled, while 13 per cent have been withdrawn under Section 12A. A significant number of withdrawn cases (around 55 per cent) were less than Rs 1 crore, while the primary reason for withdrawal has been either the full settlement with the applicant (325 cases) or other settlement with creditors (224 cases). The CARE Ratings report said out of Rs 898,906 crore of admitted claims of financial creditors, the realisable value is Rs 286,059.7 crore. /IANS