NARCL expects to recover up to Rs 64,000 cr through resolution of bad loans

Bad bank and AMC may get 15 per cent of upside recovery in NPAs resolved in first year itself

The newly formed National Asset Reconstruction Company (NARCL) expects to recover between Rs 50,000 crore and Rs 64,000 crore through the resolution of bad loans amounting to Rs 2 trillion. The most likely recovery has been pegged at 28 per cent or Rs 56,000 crore.

Among other recovery scenarios for NARCL’s portfolio, the lowest estimation of recovery has been pegged at 25 per cent or Rs 50,000 crore, according to internal estimates. On the other hand, the highest recovery rate is pegged at 32 per cent where the NARCL is expected to recover Rs 64,000 crore.

Recovery from the resolution of bad