**Executive Summary**
This report outlines the progress of the National Asset Reconstruction Company Limited (NARCL) in resolving stressed assets as of March 2026. During FY 2025–26, NARCL recovered ₹4,364 crore, accounting for 70% of its cumulative recoveries to date. The company is currently working toward a total debt acquisition target of ₹2 lakh crore to support banking sector stability.
**Key Points / Main Content**
**Recovery Performance**
* NARCL realized ₹4,364 crore in FY 2025–26, bringing cumulative recoveries to ₹6,345 crore.
* Total recoveries across 23 accounts represent more than 48% of their acquisition cost.
* Three specific accounts achieved full resolution with high recovery rates of 148%, 115%, and 183%.
**Asset Acquisition and Portfolio**
* As of March 2026, NARCL has acquired 33 borrower entities with a total debt exposure of ₹1,65,862 crore.
* The company is actively progressing toward a total acquisition target of ₹2 lakh crore.
* NARCL utilizes the Insolvency and Bankruptcy Code (IBC) and market-based mechanisms to facilitate resolutions.
**Strategic Impact on the Financial Sector**
* The framework aims to strengthen the balance sheets of the banking sector by resolving large stressed exposures.
* NARCL promotes capital recycling and supports sustained credit growth within the Indian economy.
* The coordinated institutional approach is intended to enhance the overall resilience of the financial sector.
**Impact Analysis**
**Banking Sector and Lenders**
**Impact**
Lenders benefit from improved balance sheet strength and the unlocking of value from stressed assets. Successful resolutions have delivered recovery rates significantly above acquisition costs for certain accounts.
**Action Required**
Lenders must continue to facilitate the transfer of large-value stressed exposures to NARCL for transparent, market-based resolution.
**National Asset Reconstruction Company Limited (NARCL)**
**Impact**
NARCL has established itself as a cornerstone of the stressed asset architecture, demonstrating accelerated recovery momentum and effectiveness in resolution strategies.
**Action Required**
The company must continue to evaluate and acquire additional large-value accounts to meet its ₹2 lakh crore target and manage ongoing recovery processes for the 33 acquired entities.
**Borrower Entities**
**Impact**
Thirty-three borrower entities have been brought under the NARCL framework for debt resolution, with three accounts already fully resolved.
**Action Required**
Entities remain subject to resolution processes under the Insolvency and Bankruptcy Code and other transparent recovery mechanisms managed by NARCL.
Key Entities Referenced
National Asset Reconstruction Company Limited (NARCL): A specialized financial institution established to acquire and resolve large-value stressed assets from banks to strengthen their balance sheets.
Insolvency and Bankruptcy Code (IBC): The legal framework for time-bound insolvency resolution in India, under which NARCL participates in asset resolution processes.
Ministry of Finance: The primary government ministry overseeing NARCL's operations and the broader stressed asset resolution architecture in the banking sector.
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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