Ministry of Finance
National Asset Reconstruction Company Limited (NARCL) Strengthens India’s Stressed Asset Resolution Framework, Accelerates Recoveries in FY 2025–26
₹4,364 crore recovered in FY 2025–26, contributing nearly 70% of cumulative recoveries with total recoveries reaching ₹6,345 crore
33 borrower entities acquired with aggregate debt exposure of ₹1.65 lakh crore, progressing towards ₹2 lakh crore acquisition target
Posted On:
30 APR 2026 5:10PM by PIB Delhi
The National Asset Reconstruction Company Limited (NARCL) has emerged as a cornerstone of India’s stressed asset resolution architecture, playing an important role in supporting the banking sector’s balance sheet strengthening. 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.
As on March 2026, NARCL has acquired 33 borrower entities with an aggregate debt exposure of ₹1,65,862 crore. It has also participated in resolution processes under the Insolvency and Bankruptcy Code, further strengthening its role in the overall resolution ecosystem.
FY 2025–26 marks a significant acceleration in NARCL’s recovery efforts, with ₹4,364 crore realised during the year, accounting for approximately 70% of cumulative recoveries. This momentum underscores the effectiveness of ongoing resolution strategies. Recoveries have been effected in 23 accounts, with total recoveries of ₹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.
Note: Figures in brackets indicate recovery as a percentage of acquisition cost.
Building on this momentum, 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 ₹2 lakh crore, reinforcing its role in enabling capital recycling, improving balance sheet strength of banks, and supporting sustained credit growth in the economy.
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.
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(Release ID: 2256984)
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