New Delhi, April 30 (IANS) The National Asset Reconstruction Company Limited (NARCL) has emerged as a key player in India’s stressed asset resolution ecosystem, aimed at strengthening the banking sector’s balance sheet.
NARCL’s recovery efforts recorded a significant acceleration in the financial year 2025-26, with ₹4,364 crore realised, accounting for approximately 70 per cent of cumulative recoveries, according to a Finance Ministry statement issued on Thursday.
This momentum underscores the effectiveness of ongoing resolution strategies. Recoveries have been effected in 23 accounts, totaling ₹6,345 crore, representing more than 48 per cent of the acquisition cost, and further recoveries are underway.
Importantly, three accounts have been fully resolved, delivering recoveries of 148 per cent, 115 per cent, and 183 per cent, demonstrating value maximisation and positive outcomes for lenders, the statement said.
By bringing together large, stressed exposures and facilitating their resolution through transparent, market-based mechanisms, NARCL has improved recovery outcomes and unlocked value for banks.
As of 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, the statement explained.
Building on this momentum, NARCL continues to advance its resolution efforts, including the evaluation and acquisition of additional large-value accounts.
The company remains on track to achieve its target of acquiring ₹2 lakh crore, reinforcing its role in enabling capital recycling, strengthening banks’ balance sheets, and supporting sustained credit growth in the economy, the statement said.
NARCL’s progress reflects the strength of a coordinated institutional approach to resolving stressed assets and underscores the Government’s continued commitment to enhancing the efficiency and resilience of the financial sector, the statement added.
–IANS
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