Parliament Question: Accountability of Asset Reconstruction Companies

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA UNSTARRED QUESTION NO. 96 ANSWERED ON MONDAY, JULY 20, 2026/ ASHADHA 29, 1948 (SAKA) Accountability of Asset Reconstruction Companies 96. SHRI RAJEEV RAI: Will the Minister of FINANCE be pleased to state: (a) the number of Asset Reconstruction Companies (ARCs) registered with the Reserve Bank of India and the value of stressed assets acquired by them during the last five years, year-wise; (b) the details of Non-Performing Assets (NPAs) sold by public sector banks to ARCs, indicating book value, sale value, haircut and recoveries realised, bank-wise; (c) whether the Government has examined cases of undervaluation, fraud, collusion or other irregularities in ARC transactions and the action taken thereon, if so, the details thereof; and (d) the measures taken to strengthen regulation, transparency and accountability in ARC transactions and prevent defaulting promoters from regaining control of stressed assets? ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) As informed by Reserve Bank of India (RBI), there are 27 ARCs registered with the RBI as on March 31, 2026. The cumulative “Book Value of the Assets acquired by ARCs from Banks/ FIs” as on FYs ending March 22 to March 2026 is given below: - FY Cumulative Total Amount (in Rs. Crores) 31/3/2022 6,29,314 31/3/2023 8,39,126 31/3/2024 10,25,429 31/3/2025 16,19,124 31/3/2026 18,78,007 Source: RBI (b) Bank-wise data as provided by Public Sector Banks (PSBs) is given in Annexure. (c) and (d) As informed by RBI, in order to ensure the prudent, efficient, fair, and transparent functioning of ARCs, RBI initially issued guidelines for the ARC sector under The Securitisation Companies and Reconstruction Companies (Reserve Bank) Guidelines and Directions, 2003 dated April 23, 2003. Further, all guidelines issued to ARCs by RBI have now been consolidated under the Reserve Bank of India (Asset Reconstruction Companies) Directions, 2025. These Directions cover, inter alia, the registration of ARCs, securitisation and asset reconstruction activities, prudential regulations, governance and conduct norms, and accounting and disclosure requirements. *****Annexure Annexure referred to in part (b) of Lok Sabha Un-Starred Question No. 96 on “Accountability of Asset Reconstruction Companies” due for answer on 20.07.2026 Details of NPAs sold by Public Sector Banks to ARCs (last 5 years) (Amount in ₹ Crores) S. No. PSBs Book Value Sale Value Recoveries Realised 1 State Bank of India 17,598.97 9,369.55 5,065.24 2 Punjab National Bank 12,411.19 5,233.64 3,523.85 3 Canara Bank 11,595.65 4,289.82 2,934.47 4 Bank of Baroda 4,145.36 1,526.60 1,102.25 5 Union Bank of India 9,623.08 4,243.49 3,437.29 6 Bank of India 4,414.28 1,617.08 1,160.68 7 Indian Bank 3,840.82 1,833.72 1,241.66 8 Central Bank of India 1,414.24 709.49 444.80 9 Indian Overseas Bank 8,130.05 3,040.41 1,974.26 10 UCO Bank 1,891.00 918.11 248.77 11 Bank of Maharashtra 1,803.45 948.97 502.24 12 Punjab & Sind Bank 666.08 806.41 558.46 Total 77,534.17 34,537.29 22,193.97 Source: PSBs * Haircut is not a clearly defined term. *****