Better Recovery Rates For ARCs Likely In FY26

New Delhi: Asset Reconstruction Companies (ARCs) are expected to see an improvement in the redemption rate of Security Receipts (SRs) issued for stressed retail assets in the next financial year, a new report said on Tuesday.

According to a Crisil report, the cumulative redemption rate is likely to increase by approximately 600 basis points (BPS), reaching 69-71 per cent. This improvement is primarily driven by better recoveries from low-vintage accounts and high settlement rates across secured and unsecured asset classes.