How Much Debt Has NARCL Recovered So Far? DFS Holds High-Level Meeting with PSU Banks

The Ministry of Finance conducted a meeting of NARCL and PSU Banks to discuss the debt recovery.

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.

But first, let’s understand what is NARCL? NARCL is a government-backed “bad bank” set up to take over and resolve stressed loans (NPAs) of banks, mainly public sector banks (PSBs). Indian banks were burdened with large non-performing assets (bad loans) so NARCL was created to clean up bank balance sheets, speed up recovery of bad loans and allow banks to focus on fresh lending.

Also Read: Government Plans to Install New ATMs to Dispense Smaller Currency Notes

Meeting Highlights: What data revealed?

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).

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.

Also Read: Is Deutsche Bank involved in Money Laundering? Why Bank was raided?

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.

Other important discussions held in meeting

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.

Also Read: Big Strike on 12 February 2026, 10 Central Trade Unions Announce Nationwide Strike

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).

Also Read: SBI Circle Based Officer (CBO) Recruitment 2026 Notification PDF Out for 2050 Posts