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ARCs see faster growth in retail bad loans

Financial Express Kolkata

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February 17, 2025

Rising Stress in Unsecured Debt

- SACHIN KUMAR

The share of retail bad loans with Asset Reconstruction Companies (ARCs) has risen at a faster pace than corporate non-performing loans (NPAs), driven by increasing stress in unsecured and microfinance loans.

Retail NPAs of ARCs have grown by nearly 10% to ₹44,060 crore in the first nine months of the current financial year, while corporate NPAs have risen by 6% to ₹2.58 lakh crore as of the end of December 2024, according to data from the Association of ARCs in India.

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