Home India Ministry of Finance Secretary DFS reviews performance of National Asset Reconstr...
Date: 2026-01-28 Category: Press Release State: Union Government Country: India

Secretary DFS reviews performance of National Asset Reconstruction Company Limited (NARCL)

Issued by Ministry of Finance · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** Secretary DFS chaired a meeting on January 28, 2026, to review the performance of the National Asset Reconstruction Company Limited (NARCL). The meeting covered Q3 performance and Q4 aspirations, noting an increase in accounts acquired by NARCL and progress in recovery. The need to minimize delays in the acquisition process was emphasized. **Key Points / Main Content** * **Performance Review:** * NARCL's acquisition of accounts increased from 29 to 30, raising the acquired aggregate debt exposure to approximately Rs 1.63 lakh crore. * The pipeline of accounts was identified, potentially increasing acquisitions to approximately Rs 2 lakh crore (the target for NARCL). * Recovery increased by approximately Rs 1,439 crore since the last quarter review on October 8, 2025. * Total recovery now stands at Rs 5,496 crore, including SR redemption of Rs 4,803 crore. * NARCL successfully redeemed 100% SRs in three accounts, distributing the upside to lenders. * **Acquisition Process:** * Deliberations focused on minimizing time taken in the acquisition process. * Discussions included issues related to inter-se creditors due to differential security structures, additional collaterals, and valuations. * **Emphasis on Collaboration and Resolution:** * Secretary DFS stressed the need for lenders and NARCL to collaborate to reduce delays in the acquisition process. * Lenders should adhere to decisions made in Joint Lenders Meetings (JLM). * Continued efforts are needed to recover public money through resolution of acquired accounts. **Impact Analysis** **Stakeholder: Lenders** * **Impact:** Receive upside distribution from 100% SR redemption in three accounts. * **Action Required:** Work in tandem with NARCL to reduce acquisition delays and follow the decisions made in Joint Lenders Meetings (JLM). **Stakeholder: National Asset Reconstruction Company Limited (NARCL)** * **Impact:** Account acquisition has increased, and the pipeline of accounts was identified which may take the tally of acquisition close to Rs 2 lakh crore (target envisaged for NARCL). * **Action Required:** Continue to collaborate with lenders to reduce acquisition delays. Focus on bringing back public money through recovery and resolution in acquired accounts.

Key Entities Referenced

National Asset Reconstruction Company Limited (NARCL): A company focused on acquiring and resolving distressed assets, especially from public sector banks. Department of Financial Services: Department within the Ministry of Finance responsible for overseeing financial institutions. Ministry of Finance: The central ministry responsible for financial matters of the government.
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Ministry of Finance Secretary DFS reviews performance of National Asset Reconstruction Company Limited (NARCL) NARCL records successful redemption of 100% government securities and upside distribution in 3 accounts प्रव तथ: 28 JAN 2026 9:14PM by PIB Delhi Shri M. Nagaraju, Secretary, Department of Financial Services, M/o Finance chaired a meeting with National Asset Reconstruction Company Limited (NARCL) along with participation from all public sector banks. This is the first meeting of Q4 focussing on aspirations for the quarter ahead and discussion on performance for Q3. During the course of the meeting, it was reported that the number of accounts acquired by NARCL has increased from 29 to 30, taking the tally of acquired aggregate debt exposure to Rs 1.63 lakh crore (approx.). Pipeline of accounts was identified which may take the tally of acquisition close to Rs 2 lakh crore (target envisaged for NARCL). On the resolution front, it was reported that there is a net increase in recovery of Rs 1,439 crore approximately since last quarter review dated 8.10.2025. Total recovery now stands at Rs 5,496 crore with SR (security receipt) redemption of Rs 4,803 crore. It was apprised during the meeting that NARCL has successfully redeemed 100 % SRs in 3 accounts with upside distributed to lenders. Further, deliberations were done on the ways that could lead to minimisation of time taken in acquisition process. The issues pertaining to inter-se creditors arising due to differential security structures, additional collaterals and valuations which lead to longer time frame were also discussed. Secretary, DFS emphasised that both lenders and NARCL need to work in tandem along with other stakeholders to reduce the delay in acquisition process and that lenders should follow the dharma of sticking to the decisions taken in Joint Lenders Meeting (JLM). While highlighting the progress done on resolution side, he stated that still much work is to be done to bring back public money through recovery and resolution in acquired accounts. ***** NB/AD (रलीज़ आईडी: 2219810) आगंतुक पटल : 125

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