Indian loan officers processing retail loan documents in a back-office.
Asset Reconstruction Companies (ARCs) in India are witnessing a notable shift in their operational focus, with stressed retail loans emerging as a primary growth driver. During the fiscal year 2025-26, ARCs collectively acquired stressed debt exceeding ₹2 lakh crore. This substantial acquisition comprises approximately ₹1.5 lakh crore of corporate loans and a significant ₹50,000 crore in retail assets.
The acquisition of retail assets saw a substantial year-on-year increase of ₹54,727 crore, contrasting with the corporate acquisition expansion of ₹1.5 lakh crore. This trend indicates that while corporate loan resolutions remain a major component, the resolution of stressed retail portfolios is gaining momentum and becoming a key area for ARCs to drive future growth and profitability.
About the Author
