ARCs triple retail SR issuance in Q1 even as corporate demand weakens

Mumbai: Asset reconstruction companies (ARCs) ramped up purchases of retail loan pools in the first quarter of FY26, issuing ₹1,713 crore in security receipts (SRs) against just ₹496 crore a year earlier.

The threefold jump in retail SR issuance provided a rare boost to the market, even as corporate SR issuance declined.

Corporate SR issuance dropped to ₹2,675 crore in Q1 from ₹3,182 crore in the same period last year, reflecting lower demand for large-ticket distressed assets.

The combined SR issuance across retail and corporate segments grew 19% year-on-year, but redemptions rose 22%, shrinking the stock of outstanding SRs.