Industry Report

NPA recovery trends in Q1 2026: what the data says

Recovery rates improved modestly in Q1, but the picture is uneven across sectors. Housing finance outperformed; microfinance struggled. Our analysis breaks down what's driving the divergence.

TopicIndustry Report
PublishedApril 2026
Read time10 min read

Legal recovery teams across India are under pressure to do more with the same headcount — faster disposals, tighter compliance, and clearer reporting to leadership. This piece breaks down what is actually changing on the ground and what it means for how teams operate.

Why this matters now

Volumes are rising while timelines tighten. The institutions pulling ahead are the ones that have moved off spreadsheets and disconnected tools onto a single operating layer for disputes.

What good looks like

The takeaway

The gap between leaders and laggards is widening, and it comes down to tooling and process — not headcount.

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Legal IntelligenceArbitrationSARFAESICheque BounceDPD RecoveryCase ManagementBorrower InsightsMulti-JurisdictionAutomated NoticesWorkflow AutomationLegal IntelligenceArbitrationSARFAESICheque BounceDPD RecoveryCase ManagementBorrower InsightsMulti-JurisdictionAutomated NoticesWorkflow Automation