{"id":12863,"date":"2025-12-29T16:07:33","date_gmt":"2025-12-29T11:07:33","guid":{"rendered":"https:\/\/fpl.kz\/?page_id=12863"},"modified":"2025-12-31T10:53:42","modified_gmt":"2025-12-31T05:53:42","slug":"activity-of-indias-asset-management-company-narcl-and-the-npl-sector-current-overview","status":"publish","type":"page","link":"https:\/\/fpl.kz\/?page_id=12863&lang=en","title":{"rendered":"Activity of India\u2019s Asset Management Company (NARCL) and the NPL Sector: Current Overview"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"12863\" class=\"elementor elementor-12863\">\n\t\t\t\t<div class=\"elementor-element elementor-element-d702f52 e-flex e-con-boxed wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-parent\" data-id=\"d702f52\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-826dd2e elementor-widget elementor-widget-heading\" data-id=\"826dd2e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Activity of India\u2019s Asset Management Company (NARCL) and the NPL Sector: Current Overview<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f4071d5 elementor-widget elementor-widget-heading\" data-id=\"f4071d5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">1. Overview of India\u2019s NPL (GNPA) Dynamics<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-81b6bf5 elementor-widget elementor-widget-text-editor\" data-id=\"81b6bf5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>GNPA (Gross Non-Performing Assets) Trend<\/strong><\/p><p>In recent years, the GNPA level of India\u2019s banking system has declined significantly.<\/p><p>According to estimates, GNPA decreased from approximately <strong>9.1% in 2019<\/strong> to <strong>2.8% by the end of FY2024<\/strong>, and further to <strong>2.6% in 2025<\/strong>. This reflects a substantial improvement in banks\u2019 asset quality, driven by active write-offs, recoveries, and transfers of distressed assets.<\/p><p><strong>Key reasons for this decline:<\/strong><\/p><ul><li>Reduction in new problem loans;<\/li><li>Increased write-offs and restructurings;<\/li><li>More active recovery processes and participation of the \u201cbad bank\u201d (NARCL);<\/li><li>Macroeconomic recovery enabling borrowers to better service their debts.<\/li><\/ul><p><strong>GNPA Dynamics<\/strong><\/p><table><tbody><tr><td><p><strong>Year<\/strong><\/p><\/td><td><p><strong>GNPA (%)<\/strong><\/p><\/td><\/tr><tr><td><p>2019<\/p><\/td><td><p>9.1<\/p><\/td><\/tr><tr><td><p>2020<\/p><\/td><td><p>8.2<\/p><\/td><\/tr><tr><td><p>2021<\/p><\/td><td><p>7.3<\/p><\/td><\/tr><tr><td><p>2022<\/p><\/td><td><p>5.9<\/p><\/td><\/tr><tr><td><p>2023<\/p><\/td><td><p>4.5<\/p><\/td><\/tr><tr><td><p>2024<\/p><\/td><td><p>2.8<\/p><\/td><\/tr><tr><td><p>2025*<\/p><\/td><td><p>2.6<\/p><\/td><\/tr><\/tbody><\/table><p><em>* 2025 \u2014 estimated value based on public statements and reports.<\/em><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-59eea65 elementor-widget elementor-widget-heading\" data-id=\"59eea65\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">2. Key Drivers of NPL Reduction<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5b24d70 elementor-widget elementor-widget-text-editor\" data-id=\"5b24d70\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><ul><li><strong>IBC reform (Insolvency and Bankruptcy Code):<\/strong> introduction of pre-pack mechanisms, accelerated insolvency procedures, and improved efficiency of corporate default resolution.<\/li><li><strong>Recovery mechanisms (SARFAESI \/ DRT):<\/strong> more active collateral enforcement, faster procedures, and electronic auctions.<\/li><li><strong>Role of ARCs:<\/strong> asset reconstruction companies have become more active in acquiring large NPLs and restructuring or selling them.<\/li><li><strong>State \u201cbad bank\u201d (NARCL):<\/strong> significantly strengthened banks\u2019 capacity to offload distressed loans.<\/li><\/ul><strong>Macroeconomic support:<\/strong> economic growth and improved corporate revenues, reducing default rates and enhancing solvency.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9ea5fd3 elementor-widget elementor-widget-heading\" data-id=\"9ea5fd3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">3. Key Regulatory and Institutional Developments<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ca88ee1 elementor-widget elementor-widget-text-editor\" data-id=\"ca88ee1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>3.1 NARCL \u2013 the Core \u201cBad Bank\u201d Institution<\/strong><\/p><ul><li><strong>Establishment:<\/strong> National Asset Reconstruction Company Ltd (NARCL) was established by the Government of India and registered as an ARC.<\/li><li><strong>Objective:<\/strong> aggregation of large stressed loans (typically \u2265 USD 57.5 million) from the banking system and facilitation of their resolution.<\/li><li><strong>Payment structure:<\/strong> approximately <strong>15% cash<\/strong> and <strong>85% via Security Receipts (SRs)<\/strong> when acquiring distressed assets from banks.<\/li><li><strong>Government guarantee:<\/strong> SRs issued to banks are backed by a government guarantee for about <strong>5 years<\/strong>, mitigating transfer risks.<\/li><li><strong>Portfolio:<\/strong> as of early 2025, NARCL has acquired stressed assets totaling around <strong>USD 12.1 billion<\/strong>, covering approximately <strong>28 accounts<\/strong>.<\/li><li><strong>Targets:<\/strong> acquisition of up to <strong>USD 23 billion<\/strong> in distressed assets by FY2026.<\/li><li><strong>Resolution mechanism:<\/strong> NARCL works with <strong>IDRCL (India Debt Resolution Company Ltd)<\/strong>, which is responsible for asset resolution strategies (restructuring, sale, liquidation, IBC proceedings).<\/li><li><strong>Transaction results:<\/strong> NARCL closed transactions totaling approximately <strong>USD 2.76 billion<\/strong> in FY2024.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-83c04fa elementor-widget elementor-widget-heading\" data-id=\"83c04fa\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">4. Sectoral Structure of NPLs (Estimated)<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3517b53 elementor-widget elementor-widget-text-editor\" data-id=\"3517b53\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<table><tbody><tr><td><p>Sector<\/p><\/td><td><p>Estimated NPL Share<\/p><\/td><td><p>Expected Recovery Rate<\/p><\/td><\/tr><tr><td><p>Infrastructure<\/p><\/td><td><p>7\u201312%<\/p><\/td><td><p>~35\u201355%<\/p><\/td><\/tr><tr><td><p>Construction<\/p><\/td><td><p>6\u201310%<\/p><\/td><td><p>~30\u201350%<\/p><\/td><\/tr><tr><td><p>Manufacturing<\/p><\/td><td><p>3\u20136%<\/p><\/td><td><p>~40\u201365%<\/p><\/td><\/tr><tr><td><p>Steel &amp; Metals<\/p><\/td><td><p>5\u20139%<\/p><\/td><td><p>~35\u201360%<\/p><\/td><\/tr><tr><td><p>MSMEs<\/p><\/td><td><p>8\u201312%<\/p><\/td><td><p>~25\u201345%<\/p><\/td><\/tr><\/tbody><\/table><p><em>(Estimates based on ARC industry reviews, public statements by NARCL, and analytical reports.)<\/em><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-26006de elementor-widget elementor-widget-heading\" data-id=\"26006de\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">5. Risks and Key Challenges<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e322625 elementor-widget elementor-widget-text-editor\" data-id=\"e322625\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>Collateral realization risk:<\/strong> assets transferred to NARCL may face revaluation or liquidation challenges, particularly complex infrastructure or industrial collateral.<\/li><li><strong>Resolution timelines:<\/strong> large accounts may remain unresolved for extended periods, especially under IBC processes, delaying cash recoveries.<\/li><li><strong>Guarantee exposure:<\/strong> government guarantees on SRs may be triggered if recoveries underperform expectations, posing fiscal risks.<\/li><li><strong>Competition with private ARCs:<\/strong> NARCL competes with private ARCs for large asset pools.<\/li><li><strong>Valuation risk:<\/strong> inaccurate asset valuation may result in overpricing and potential losses.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d0ea602 elementor-widget elementor-widget-heading\" data-id=\"d0ea602\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">6. Opportunities for Investors<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-735bda8 elementor-widget elementor-widget-text-editor\" data-id=\"735bda8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>Partnerships with NARCL:<\/strong> investors may collaborate in selling restructured assets or act as buyers after asset aggregation.<\/li><li><strong>Investments in SR portfolios:<\/strong> SRs may offer attractive returns with proper risk assessment and effective collateral realization.<\/li><li><strong>Engagement with IDRCL:<\/strong> joint restructuring projects, especially in infrastructure and energy sectors, can generate value.<\/li><li><strong>Collaboration with ARCs:<\/strong> combining ARC expertise with NARCL\u2019s scale to build workout platforms and secondary asset sales.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5feb183 elementor-button-warning elementor-widget elementor-widget-button\" data-id=\"5feb183\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"\/files\/international-exp\/India-experience-en.pdf\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Previously published information<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Activity of India\u2019s Asset Management Company (NARCL) and the NPL Sector: Current Overview 1. Overview of India\u2019s NPL (GNPA) Dynamics GNPA (Gross Non-Performing Assets) Trend In recent years, the GNPA level of India\u2019s banking system has declined significantly. According to estimates, GNPA decreased from approximately 9.1% in 2019 to 2.8% by the end of FY2024, and further to 2.6% in 2025. This reflects a substantial improvement in banks\u2019 asset quality, driven by active write-offs, recoveries, and transfers of distressed assets. Key reasons for this decline: Reduction in new problem loans; Increased write-offs and restructurings; More active recovery processes and participation of the \u201cbad bank\u201d (NARCL); Macroeconomic recovery enabling borrowers to better service their debts. GNPA Dynamics Year GNPA (%) 2019 9.1 2020 8.2 2021 7.3 2022 5.9 2023 4.5 2024 2.8 2025* 2.6 * 2025 \u2014 estimated value based on public statements and reports. 2. Key Drivers of NPL Reduction IBC reform (Insolvency and Bankruptcy Code): introduction of pre-pack mechanisms, accelerated insolvency procedures, and improved efficiency of corporate default resolution. Recovery mechanisms (SARFAESI \/ DRT): more active collateral enforcement, faster procedures, and electronic auctions. Role of ARCs: asset reconstruction companies have become more active in acquiring large NPLs and restructuring or selling them. State \u201cbad bank\u201d (NARCL): significantly strengthened banks\u2019 capacity to offload distressed loans. Macroeconomic support: economic growth and improved corporate revenues, reducing default rates and enhancing solvency. 3. Key Regulatory and Institutional Developments 3.1 NARCL \u2013 the Core \u201cBad Bank\u201d Institution Establishment: National Asset Reconstruction Company Ltd (NARCL) was established by the Government of India and registered as an ARC. Objective: aggregation of large stressed loans (typically \u2265 USD 57.5 million) from the banking system and facilitation of their resolution. Payment structure: approximately 15% cash and 85% via Security Receipts (SRs) when acquiring distressed assets from banks. Government guarantee: SRs issued to banks are backed by a government guarantee for about 5 years, mitigating transfer risks. Portfolio: as of early 2025, NARCL has acquired stressed assets totaling around USD 12.1 billion, covering approximately 28 accounts. Targets: acquisition of up to USD 23 billion in distressed assets by FY2026. Resolution mechanism: NARCL works with IDRCL (India Debt Resolution Company Ltd), which is responsible for asset resolution strategies (restructuring, sale, liquidation, IBC proceedings). Transaction results: NARCL closed transactions totaling approximately USD 2.76 billion in FY2024. 4. Sectoral Structure of NPLs (Estimated) Sector Estimated NPL Share Expected Recovery Rate Infrastructure 7\u201312% ~35\u201355% Construction 6\u201310% ~30\u201350% Manufacturing 3\u20136% ~40\u201365% Steel &amp; Metals 5\u20139% ~35\u201360% MSMEs 8\u201312% ~25\u201345% (Estimates based on ARC industry reviews, public statements by NARCL, and analytical reports.) 5. Risks and Key Challenges Collateral realization risk: assets transferred to NARCL may face revaluation or liquidation challenges, particularly complex infrastructure or industrial collateral. Resolution timelines: large accounts may remain unresolved for extended periods, especially under IBC processes, delaying cash recoveries. Guarantee exposure: government guarantees on SRs may be triggered if recoveries underperform expectations, posing fiscal risks. Competition with private ARCs: NARCL competes with private ARCs for large asset pools. Valuation risk: inaccurate asset valuation may result in overpricing and potential losses. 6. Opportunities for Investors Partnerships with NARCL: investors may collaborate in selling restructured assets or act as buyers after asset aggregation. Investments in SR portfolios: SRs may offer attractive returns with proper risk assessment and effective collateral realization. Engagement with IDRCL: joint restructuring projects, especially in infrastructure and energy sectors, can generate value. Collaboration with ARCs: combining ARC expertise with NARCL\u2019s scale to build workout platforms and secondary asset sales. Previously published information<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"content-type":"","footnotes":""},"class_list":["post-12863","page","type-page","status-publish","hentry"],"blocksy_meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>\u041e\u043f\u044b\u0442 \u0418\u043d\u0434\u0438\u0438 - \u0410\u041e &quot;\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432&quot;<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fpl.kz\/?page_id=12863&lang=en\" \/>\n<meta property=\"og:locale\" content=\"ru_RU\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"\u041e\u043f\u044b\u0442 \u0418\u043d\u0434\u0438\u0438 - \u0410\u041e &quot;\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432&quot;\" \/>\n<meta property=\"og:description\" content=\"Activity of India\u2019s Asset Management Company (NARCL) and the NPL Sector: Current Overview 1. Overview of India\u2019s NPL (GNPA) Dynamics GNPA (Gross Non-Performing Assets) Trend In recent years, the GNPA level of India\u2019s banking system has declined significantly. According to estimates, GNPA decreased from approximately 9.1% in 2019 to 2.8% by the end of FY2024, and further to 2.6% in 2025. This reflects a substantial improvement in banks\u2019 asset quality, driven by active write-offs, recoveries, and transfers of distressed assets. Key reasons for this decline: Reduction in new problem loans; Increased write-offs and restructurings; More active recovery processes and participation of the \u201cbad bank\u201d (NARCL); Macroeconomic recovery enabling borrowers to better service their debts. GNPA Dynamics Year GNPA (%) 2019 9.1 2020 8.2 2021 7.3 2022 5.9 2023 4.5 2024 2.8 2025* 2.6 * 2025 \u2014 estimated value based on public statements and reports. 2. Key Drivers of NPL Reduction IBC reform (Insolvency and Bankruptcy Code): introduction of pre-pack mechanisms, accelerated insolvency procedures, and improved efficiency of corporate default resolution. Recovery mechanisms (SARFAESI \/ DRT): more active collateral enforcement, faster procedures, and electronic auctions. Role of ARCs: asset reconstruction companies have become more active in acquiring large NPLs and restructuring or selling them. State \u201cbad bank\u201d (NARCL): significantly strengthened banks\u2019 capacity to offload distressed loans. Macroeconomic support: economic growth and improved corporate revenues, reducing default rates and enhancing solvency. 3. Key Regulatory and Institutional Developments 3.1 NARCL \u2013 the Core \u201cBad Bank\u201d Institution Establishment: National Asset Reconstruction Company Ltd (NARCL) was established by the Government of India and registered as an ARC. Objective: aggregation of large stressed loans (typically \u2265 USD 57.5 million) from the banking system and facilitation of their resolution. Payment structure: approximately 15% cash and 85% via Security Receipts (SRs) when acquiring distressed assets from banks. Government guarantee: SRs issued to banks are backed by a government guarantee for about 5 years, mitigating transfer risks. Portfolio: as of early 2025, NARCL has acquired stressed assets totaling around USD 12.1 billion, covering approximately 28 accounts. Targets: acquisition of up to USD 23 billion in distressed assets by FY2026. Resolution mechanism: NARCL works with IDRCL (India Debt Resolution Company Ltd), which is responsible for asset resolution strategies (restructuring, sale, liquidation, IBC proceedings). Transaction results: NARCL closed transactions totaling approximately USD 2.76 billion in FY2024. 4. Sectoral Structure of NPLs (Estimated) Sector Estimated NPL Share Expected Recovery Rate Infrastructure 7\u201312% ~35\u201355% Construction 6\u201310% ~30\u201350% Manufacturing 3\u20136% ~40\u201365% Steel &amp; Metals 5\u20139% ~35\u201360% MSMEs 8\u201312% ~25\u201345% (Estimates based on ARC industry reviews, public statements by NARCL, and analytical reports.) 5. Risks and Key Challenges Collateral realization risk: assets transferred to NARCL may face revaluation or liquidation challenges, particularly complex infrastructure or industrial collateral. Resolution timelines: large accounts may remain unresolved for extended periods, especially under IBC processes, delaying cash recoveries. Guarantee exposure: government guarantees on SRs may be triggered if recoveries underperform expectations, posing fiscal risks. Competition with private ARCs: NARCL competes with private ARCs for large asset pools. Valuation risk: inaccurate asset valuation may result in overpricing and potential losses. 6. Opportunities for Investors Partnerships with NARCL: investors may collaborate in selling restructured assets or act as buyers after asset aggregation. Investments in SR portfolios: SRs may offer attractive returns with proper risk assessment and effective collateral realization. Engagement with IDRCL: joint restructuring projects, especially in infrastructure and energy sectors, can generate value. Collaboration with ARCs: combining ARC expertise with NARCL\u2019s scale to build workout platforms and secondary asset sales. Previously published information\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fpl.kz\/?page_id=12863&amp;lang=en\" \/>\n<meta property=\"og:site_name\" content=\"\u0410\u041e &quot;\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432&quot;\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-31T05:53:42+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"\u041f\u0440\u0438\u043c\u0435\u0440\u043d\u043e\u0435 \u0432\u0440\u0435\u043c\u044f \u0434\u043b\u044f \u0447\u0442\u0435\u043d\u0438\u044f\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 \u043c\u0438\u043d\u0443\u0442\u044b\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fpl.kz\/?page_id=12863&lang=en\",\"url\":\"https:\/\/fpl.kz\/?page_id=12863&lang=en\",\"name\":\"\u041e\u043f\u044b\u0442 \u0418\u043d\u0434\u0438\u0438 - \u0410\u041e &quot;\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432&quot;\",\"isPartOf\":{\"@id\":\"https:\/\/fpl.kz\/#website\"},\"datePublished\":\"2025-12-29T11:07:33+00:00\",\"dateModified\":\"2025-12-31T05:53:42+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/fpl.kz\/?page_id=12863&lang=en#breadcrumb\"},\"inLanguage\":\"ru-RU\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/fpl.kz\/?page_id=12863&lang=en\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/fpl.kz\/?page_id=12863&lang=en#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"\u0413\u043b\u0430\u0432\u043d\u0430\u044f \u0441\u0442\u0440\u0430\u043d\u0438\u0446\u0430\",\"item\":\"https:\/\/fpl.kz\/?page_id=8048&lang=kk\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Activity of India\u2019s Asset Management Company (NARCL) and the NPL Sector: Current Overview\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/fpl.kz\/#website\",\"url\":\"https:\/\/fpl.kz\/\",\"name\":\"\u0410\u041e \\\"\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432\\\"\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/fpl.kz\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/fpl.kz\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"ru-RU\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/fpl.kz\/#organization\",\"name\":\"\u0410\u041e \\\"\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432\\\"\",\"url\":\"https:\/\/fpl.kz\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"ru-RU\",\"@id\":\"https:\/\/fpl.kz\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/fpl.kz\/wp-content\/uploads\/2024\/11\/group_37-2.png\",\"contentUrl\":\"https:\/\/fpl.kz\/wp-content\/uploads\/2024\/11\/group_37-2.png\",\"width\":374,\"height\":51,\"caption\":\"\u0410\u041e \\\"\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432\\\"\"},\"image\":{\"@id\":\"https:\/\/fpl.kz\/#\/schema\/logo\/image\/\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"\u041e\u043f\u044b\u0442 \u0418\u043d\u0434\u0438\u0438 - \u0410\u041e &quot;\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432&quot;","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/fpl.kz\/?page_id=12863&lang=en","og_locale":"ru_RU","og_type":"article","og_title":"\u041e\u043f\u044b\u0442 \u0418\u043d\u0434\u0438\u0438 - \u0410\u041e &quot;\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432&quot;","og_description":"Activity of India\u2019s Asset Management Company (NARCL) and the NPL Sector: Current Overview 1. Overview of India\u2019s NPL (GNPA) Dynamics GNPA (Gross Non-Performing Assets) Trend In recent years, the GNPA level of India\u2019s banking system has declined significantly. According to estimates, GNPA decreased from approximately 9.1% in 2019 to 2.8% by the end of FY2024, and further to 2.6% in 2025. This reflects a substantial improvement in banks\u2019 asset quality, driven by active write-offs, recoveries, and transfers of distressed assets. Key reasons for this decline: Reduction in new problem loans; Increased write-offs and restructurings; More active recovery processes and participation of the \u201cbad bank\u201d (NARCL); Macroeconomic recovery enabling borrowers to better service their debts. GNPA Dynamics Year GNPA (%) 2019 9.1 2020 8.2 2021 7.3 2022 5.9 2023 4.5 2024 2.8 2025* 2.6 * 2025 \u2014 estimated value based on public statements and reports. 2. Key Drivers of NPL Reduction IBC reform (Insolvency and Bankruptcy Code): introduction of pre-pack mechanisms, accelerated insolvency procedures, and improved efficiency of corporate default resolution. Recovery mechanisms (SARFAESI \/ DRT): more active collateral enforcement, faster procedures, and electronic auctions. Role of ARCs: asset reconstruction companies have become more active in acquiring large NPLs and restructuring or selling them. State \u201cbad bank\u201d (NARCL): significantly strengthened banks\u2019 capacity to offload distressed loans. Macroeconomic support: economic growth and improved corporate revenues, reducing default rates and enhancing solvency. 3. Key Regulatory and Institutional Developments 3.1 NARCL \u2013 the Core \u201cBad Bank\u201d Institution Establishment: National Asset Reconstruction Company Ltd (NARCL) was established by the Government of India and registered as an ARC. Objective: aggregation of large stressed loans (typically \u2265 USD 57.5 million) from the banking system and facilitation of their resolution. Payment structure: approximately 15% cash and 85% via Security Receipts (SRs) when acquiring distressed assets from banks. Government guarantee: SRs issued to banks are backed by a government guarantee for about 5 years, mitigating transfer risks. Portfolio: as of early 2025, NARCL has acquired stressed assets totaling around USD 12.1 billion, covering approximately 28 accounts. Targets: acquisition of up to USD 23 billion in distressed assets by FY2026. Resolution mechanism: NARCL works with IDRCL (India Debt Resolution Company Ltd), which is responsible for asset resolution strategies (restructuring, sale, liquidation, IBC proceedings). Transaction results: NARCL closed transactions totaling approximately USD 2.76 billion in FY2024. 4. Sectoral Structure of NPLs (Estimated) Sector Estimated NPL Share Expected Recovery Rate Infrastructure 7\u201312% ~35\u201355% Construction 6\u201310% ~30\u201350% Manufacturing 3\u20136% ~40\u201365% Steel &amp; Metals 5\u20139% ~35\u201360% MSMEs 8\u201312% ~25\u201345% (Estimates based on ARC industry reviews, public statements by NARCL, and analytical reports.) 5. Risks and Key Challenges Collateral realization risk: assets transferred to NARCL may face revaluation or liquidation challenges, particularly complex infrastructure or industrial collateral. Resolution timelines: large accounts may remain unresolved for extended periods, especially under IBC processes, delaying cash recoveries. Guarantee exposure: government guarantees on SRs may be triggered if recoveries underperform expectations, posing fiscal risks. Competition with private ARCs: NARCL competes with private ARCs for large asset pools. Valuation risk: inaccurate asset valuation may result in overpricing and potential losses. 6. Opportunities for Investors Partnerships with NARCL: investors may collaborate in selling restructured assets or act as buyers after asset aggregation. Investments in SR portfolios: SRs may offer attractive returns with proper risk assessment and effective collateral realization. Engagement with IDRCL: joint restructuring projects, especially in infrastructure and energy sectors, can generate value. Collaboration with ARCs: combining ARC expertise with NARCL\u2019s scale to build workout platforms and secondary asset sales. Previously published information","og_url":"https:\/\/fpl.kz\/?page_id=12863&lang=en","og_site_name":"\u0410\u041e &quot;\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432&quot;","article_modified_time":"2025-12-31T05:53:42+00:00","twitter_card":"summary_large_image","twitter_misc":{"\u041f\u0440\u0438\u043c\u0435\u0440\u043d\u043e\u0435 \u0432\u0440\u0435\u043c\u044f \u0434\u043b\u044f \u0447\u0442\u0435\u043d\u0438\u044f":"4 \u043c\u0438\u043d\u0443\u0442\u044b"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/fpl.kz\/?page_id=12863&lang=en","url":"https:\/\/fpl.kz\/?page_id=12863&lang=en","name":"\u041e\u043f\u044b\u0442 \u0418\u043d\u0434\u0438\u0438 - \u0410\u041e &quot;\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432&quot;","isPartOf":{"@id":"https:\/\/fpl.kz\/#website"},"datePublished":"2025-12-29T11:07:33+00:00","dateModified":"2025-12-31T05:53:42+00:00","breadcrumb":{"@id":"https:\/\/fpl.kz\/?page_id=12863&lang=en#breadcrumb"},"inLanguage":"ru-RU","potentialAction":[{"@type":"ReadAction","target":["https:\/\/fpl.kz\/?page_id=12863&lang=en"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/fpl.kz\/?page_id=12863&lang=en#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"\u0413\u043b\u0430\u0432\u043d\u0430\u044f \u0441\u0442\u0440\u0430\u043d\u0438\u0446\u0430","item":"https:\/\/fpl.kz\/?page_id=8048&lang=kk"},{"@type":"ListItem","position":2,"name":"Activity of India\u2019s Asset Management Company (NARCL) and the NPL Sector: Current Overview"}]},{"@type":"WebSite","@id":"https:\/\/fpl.kz\/#website","url":"https:\/\/fpl.kz\/","name":"\u0410\u041e \"\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432\"","description":"","publisher":{"@id":"https:\/\/fpl.kz\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/fpl.kz\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"ru-RU"},{"@type":"Organization","@id":"https:\/\/fpl.kz\/#organization","name":"\u0410\u041e \"\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432\"","url":"https:\/\/fpl.kz\/","logo":{"@type":"ImageObject","inLanguage":"ru-RU","@id":"https:\/\/fpl.kz\/#\/schema\/logo\/image\/","url":"https:\/\/fpl.kz\/wp-content\/uploads\/2024\/11\/group_37-2.png","contentUrl":"https:\/\/fpl.kz\/wp-content\/uploads\/2024\/11\/group_37-2.png","width":374,"height":51,"caption":"\u0410\u041e \"\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432\""},"image":{"@id":"https:\/\/fpl.kz\/#\/schema\/logo\/image\/"}}]}},"publishpress_future_action":{"enabled":false,"date":"2026-05-26 14:02:06","action":"change-status","newStatus":"draft","terms":[],"taxonomy":"language","extraData":[]},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"rttpg_featured_image_url":null,"rttpg_author":{"display_name":"eugene","author_link":"https:\/\/fpl.kz\/?author=1"},"rttpg_comment":0,"rttpg_category":" <a href=\"https:\/\/fpl.kz\/?lang=en\" rel=\"tag\">English<\/a>","rttpg_excerpt":"Activity of India\u2019s Asset Management Company (NARCL) and the NPL Sector: Current Overview 1. Overview of India\u2019s NPL (GNPA) Dynamics GNPA (Gross Non-Performing Assets) Trend In recent years, the GNPA level of India\u2019s banking system has declined significantly. According to estimates, GNPA decreased from approximately 9.1% in 2019 to 2.8% by the end of FY2024,&hellip;","_links":{"self":[{"href":"https:\/\/fpl.kz\/index.php?rest_route=\/wp\/v2\/pages\/12863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fpl.kz\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/fpl.kz\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/fpl.kz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fpl.kz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12863"}],"version-history":[{"count":4,"href":"https:\/\/fpl.kz\/index.php?rest_route=\/wp\/v2\/pages\/12863\/revisions"}],"predecessor-version":[{"id":12878,"href":"https:\/\/fpl.kz\/index.php?rest_route=\/wp\/v2\/pages\/12863\/revisions\/12878"}],"wp:attachment":[{"href":"https:\/\/fpl.kz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}