Archive · 17 Sep 2025
ARCs Anticipate Rise in Retail NPA Acquisitions for FY26
Imagine there are companies called ARCs that buy up bad debts from banks.
They're like cleanup crews for loans that people or businesses can't pay back.
Last year, they bought a lot of these debts.
Now, ARCs expect to buy more of these debts from regular people.
They're doing better at getting their money back, thanks to the economy doing well.
This means they can give money back to investors faster.
ARCs are also changing how they make money, focusing more on successfully recovering debts.
They've improved their methods to collect debts and aim to make faster decisions, which means they are doing a better job recovering the money from these debts.
ARCs are projected to acquire more retail NPAs in FY26 than corporate bad loans.
Overall dues acquired by ARCs rose 17% to ₹1.71 lakh crore in FY25.
Retail SR issuances in Q1FY26 more than doubled compared to Q1FY25.
Redemptions of SRs in FY25 rose by 30%, indicating improved recovery.
ARCs are moving from management fees to resolution success fees.
- Who
- Hari Hara Mishra, CEO, Association of ARCs in India
- What
- ARCs are expected to acquire more retail non-performing assets (NPAs) in FY26.
- When
- FY26, with trends starting in Q1
- Where
- India
- Why
- Shift driven by improved recovery rates and economic growth, with retail assets growing faster than corporate.
- ARC Dues Acquired (FY25)
- ₹1.71 lakh crore
- FY25 SR Issuances
- ₹37,511 crore
- FY25 SR Redemptions
- ₹43,256 crore
- Q1FY25 Corporate SR Issuances
- ₹3,182 crore
- Q1FY26 Corporate SR Issuances
- ₹2,675 crore
- Q1FY25 Retail SR Issuances
- ₹500 crore
- Q1FY26 Retail SR Issuances
- ₹1,713 crore