NARCL reports accelerated recovery, cumulative amount hits Rs 6,345 cr

The National Asset Reconstruction Company Ltd (NARCL) has accelerated recovery efforts in FY26, realising Rs 4,364 crore. This brings total cumulative recoveries to Rs 6,345 crore, with acquisitions reaching Rs 1.65 lakh crore, says Finance Ministry.

The National Asset Reconstruction Company Limited (NARCL) has reported a significant acceleration in its recovery efforts in FY 2025-26, with Rs 4,364 crore realised during the year, taking total cumulative recoveries to Rs 6,345 crore, according to the Ministry of Finance.

NARCL said the FY26 recoveries account for approximately 70 per cent of its total cumulative recoveries, reflecting improved resolution outcomes and strengthened recovery momentum under its stressed asset resolution framework.

Acquisition Scale and Market Role

"As on March 2026, NARCL has acquired 33 borrower entities with an aggregate debt exposure of Rs 1,65,862 crore. It has also participated in resolution processes under the Insolvency and Bankruptcy Code (IBC), further strengthening its role in the overall resolution ecosystem," noted ministry.

Resolution Success and Value Maximisation

According to the ministry, "recoveries have been effected in 23 accounts, with total recoveries of Rs 6,345 crore, representing more than 48% of acquisition cost, and further recoveries are underway. Importantly, three accounts have been fully resolved, delivering recovery of 148%, 115% and 183%, demonstrating value maximisation and positive outcomes for lenders."

The ministry stated that "by bringing together large stressed exposures and facilitating their resolution through transparent and market-based mechanisms, NARCL has contributed to improving recovery outcomes and unlocking value for lenders."

Future Targets and Economic Impact

"NARCL continues to advance its resolution efforts, including evaluation and acquisition of additional large-value accounts. The company remains on track to achieve its targeted acquisition of Rs 2 lakh crore, reinforcing its role in enabling capital recycling, improving balance sheet strength of banks, and supporting sustained credit growth in the economy," ministry noted.

A Coordinated Institutional Approach

It further added that NARCL's progress reflects the strength of a coordinated institutional approach towards resolution of stressed assets and underscores the Government's continued commitment to enhancing the efficiency and resilience of the financial sector. (ANI)

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