Economic slowdown: Around Rs 10.52 lakh cr of corporate debt at risk of default over next 3 years: Report
India Ratings and Research in a report said credit profiles of corporates are likely to remain under pressure as the economy grapples with a synchronised and prolonged economic slowdown.
Top 50 corporates reduce debt by over Rs 59,000 cr in first half of this fiscal; prefer to raise funds through ECBs
This has some bearing on the credit growth of the banks as corporates borrowing from domestic lenders have come down
Rates have been cut, debt funds have emerged as a viable alternative, FDs are losing the tax game and they provide limited flexibility.
Bad loans of state-run banks amounted to a staggering Rs 7.34 lakh crore by the end of second quarter of the current fiscal ended September, most on account of corporate defaulters, as per official data.
It had earlier said that non-performing assets amount to lakhs of crores of rupees as the recovery mechanism is not upto the mark and the facilities at DRTs and Debt Recovery Appellate Tribunals (DRATs), meant for recovering bad loans of financial institutions, are poor.
Dealings worth Rs 3.40 lakh crore in corporate bonds were reported on the two bourses during April-July 2015 period
For the time being, it appears that capital-constrained banks would have to remain as passive players in the game. But, the good news is that with companies increasingly moving to the bond market from banks, small borrowers—institutions and individuals—would get greater attention in the bank-loan market.
If the elections throw up a hung Parliament, economic uncertainty will only aggravate. This will increase the pain in the banking system.
The depreciating rupee has been adding to the problem because a huge proportion of the outstanding debt of these corporate groups is in foreign currency
In the last few years, the stock markets have punished companies with too much debt. India Inc and its Big Two business group have to downsize to cut debt and regain lost market values
Shares of Wind turbine maker Suzlon Energy surged 9 percent after the company has admitted to debt restructuring process.
India will allow foreign investors to re-invest up to 50 percent of their debt holdings from the previous calendar year starting in January 2014