National Asset Reconstruction Company

NARCL operates in a dual structure with the India Debt Resolution Company Limited (IDRCL), an asset management company. NARCL acquires the stressed assets from banks, while IDRCL, which is majority-owned by private lenders, manages the resolution process. The business model involves NARCL purchasing NPAs from banks by paying 15% of the agreed value in cash upfront and issuing government-guaranteed "Security Receipts" (SRs) for the remaining 85%. This structure is backed by a government guarantee of up to ₹30,600 crore, which can be invoked if the resolution of the assets results in a shortfall. This mechanism incentivizes quicker action from banks, frees up their capital and management resources to focus on new credit growth, and improves their balance sheets.

The company is led by Chairman Diwakar Gupta, a former MD & CFO at the State Bank of India, and MD & CEO P. Santhosh, a former Chief General Manager of Canara Bank with extensive experience in stressed asset resolution. Since commencing operations, NARCL has been actively acquiring portfolios of stressed loans and is targeting the acquisition of ₹2 trillion in such assets by FY26.