National Asset Reconstruction Company Limited (NARCL) has significantly accelerated its recovery efforts in FY 2025-26, recovering ₹4,364 crore during the year – accounting for nearly 70% of its total recoveries to date and reinforcing its role in India’s stressed asset resolution framework.
According to the Finance Ministry, cumulative recoveries by NARCL have reached ₹6,345 crore, reflecting steady progress in resolving large non-performing assets and improving outcomes for lenders.
The government-backed “bad bank” has so far acquired 33 borrower entities with a total debt exposure of ₹1.65 lakh crore. This puts the institution on track to achieve its broader target of acquiring stressed assets worth ₹2 lakh crore, aimed at easing the burden on banks and enabling fresh lending.
The Ministry said recoveries have been achieved across 23 accounts, with overall recoveries exceeding 48% of the acquisition cost. Notably, three accounts have been fully resolved, yielding recovery rates of 148%, 115% and 183%, highlighting effective value maximisation under the resolution process.
NARCL has also actively participated in resolution proceedings under the Insolvency and Bankruptcy Code, further strengthening its position within India’s broader financial restructuring ecosystem.
The sharp rise in recoveries during FY26 signals improved execution of resolution strategies and stronger coordination among stakeholders. By aggregating large stressed assets and resolving them through market-driven mechanisms, NARCL is helping clean up bank balance sheets and unlock value.
With additional high-value accounts under evaluation, the company is expected to sustain momentum in recoveries, supporting capital recycling in the banking system and contributing to overall credit growth in the economy.
NARCL’s progress underscores the government’s push to strengthen institutional mechanisms for handling stressed assets and enhancing the resilience of India’s financial sector.
