The National Asset Reconstruction Company Limited recovered ₹4,364 crore in 2025-26, accounting for about 70% of its cumulative recoveries, as the government also reviewed rising digital financial frauds and the growing use of mule accounts by cyber criminals.
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NARCL Nears Acquisition Target
As of March, NARCL had acquired 33 borrower entities with an aggregate debt exposure of ₹1,65,862 crore, according to the finance ministry. The ministry said recoveries had been effected in 23 accounts, with total recoveries of ₹6,345 crore, representing more than 48% of acquisition cost.
The ministry said further recoveries are underway. It added that three accounts have been fully resolved, delivering recoveries of 148%, 115% and 183%, respectively, reflecting what it described as value maximisation and positive outcomes for lenders.
Recoveries Support Bank Balance Sheets
According to the statement, NARCL has contributed to improving recovery outcomes and unlocking value for lenders by bringing together large stressed exposures and facilitating resolution through transparent and market-based mechanisms.
The ministry said NARCL remains on track to achieve its targeted acquisition of ₹2 lakh crore. It said the company’s role supports capital recycling, strengthens bank balance sheets and contributes to sustained credit growth in the economy.
Officials Review Mule Account Frauds
In a separate statement, the finance ministry said financial services secretary M Nagaraju chaired a meeting with the commissioner of police, Hyderabad, and senior officials from the Indian Cybercrime Coordination Centre, Central Bureau of Investigation, RBI, Indian Digital Payment Intelligence Corporation and banks to review digital financial frauds and the increasing use of mule accounts by cyber criminals.
The discussion focused on “Operation Octopus” recently carried out by the Hyderabad Police and the learnings from it. The ministry said the meeting emphasised stronger coordination to combat cyber-enabled financial frauds, closer collaboration among law enforcement agencies and banks, real-time intelligence sharing and faster response mechanisms to detect and prevent digital financial fraud.
