NARCL recovers ₹4,364 crore in FY26 as government steps up action on mule account frauds

New Delhi: The National Asset Reconstruction Company Limited (NARCL) realised ₹4,364 crore in 2025-26, accounting for about 70% of cumulative recoveries.

As of March, NARCL had acquired 33 borrower entities with an aggregate debt exposure of ₹1,65,862 crore, according to the finance ministry.



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"Recoveries have been effected in 23 accounts, with total recoveries of ₹6,345 crore, representing more than 48% of acquisition cost, and further recoveries are underway," the ministry said in a statement, adding that three accounts have been fully resolved, delivering recoveries of 148%, 115% and 183%, respectively, demonstrating value maximisation and positive outcomes for lenders.

By bringing together large stressed exposures and facilitating resolution through transparent and market-based mechanisms, NARCL has contributed to improving recovery outcomes and unlocking value for lenders, the statement said.

It said NARCL remains on track to achieve its targeted acquisition of ₹2 lakh crore, reinforcing its role in enabling capital recycling, improving the balance sheet strength of banks and supporting sustained credit growth in the economy.

Tackling Mule Accounts

In another statement, the finance ministry said that 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 increasing use of mule accounts by cyber criminals.

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The discussion focused on 'Operation Octopus' recently carried out by the Hyderabad Police, and learnings emerged from it. It was emphasised that coordinated efforts be strengthened to combat cyber-enabled financial frauds.

The meeting emphasised closer collaboration among law enforcement agencies and banks, real-time intelligence sharing and faster response mechanisms to detect and prevent digital financial fraud, the ministry said.