Retail stressed assets to outpace corporate book growth, says ARCIL MD

Asset reconstruction companies will see retail stressed assets grow faster than corporate ones in the near term, according to ARCIL Managing Director Phanindranath Kakarla, who said the trend stems from predominantly retail-focused credit growth in recent years. Kakarla dismissed concerns that improved bank asset quality would reduce long-term opportunities for ARCs, noting India's systemic credit base exceeds Rs 200 lakh crore and inevitably generates distressed assets. As of March 2026, ARCIL's book comprised 68.5 per cent corporate, 8 per cent SME, and the remainder retail. ARCIL, set to become the first standalone ARC to list on stock exchanges, will open its IPO on September 9 with a price band of Rs 132-139 per share. The company's recoveries fell to Rs 3,484 crore in FY26 from Rs 3,883 crore in FY25, though executives said annual fluctuations are normal given its large corporate book.