NARCL to expand beyond government guarantee model

NARCL plans to expand beyond its government guarantee model and start acquiring stressed loans outside the sovereign guarantee framework, including smaller accounts under ₹500 crore. Of the ₹30,600 crore government guarantee ceiling on security receipts, nearly ₹22,000 crore has already been utilised. The shift is supported by improving recovery rates, with Crisil projecting cumulative SR recoveries to rise by about 700 bps this fiscal to nearly 90 percent, driven by resolutions in real estate, roads and power.