Corporate India’s credit profile reported robust performance during FY24, with 312 issuers seeing credit upgrades and 114 facing downgrades during the fiscal year, rating agency India Ratings and Research said on Monday. The rating agency’s corporate downgrade-to-upgrade (D/U) ratio remained low at 0.37 for FY24, but saw some moderation from 0.26 in FY23. Defaults stood … Read more
The State Bank of India (SBI) on Sunday said that it had filed a complaint against ABG Shipyard — regarding a massive Rs 22,842 crore bank fraud — with the CBI in November 2019. It added that a second and more comprehensive complaint was filed with the agency in December 2020. The bank, in a … Read more
Mahindra and Mahindra Financial Services (MMFS) continues to sound very positive on the asset quality and has predicted big improvements. Key points to note – As at December 31, 2021, its Gross NPA (GNPA) as per IND-AS was 11.30% and as per IRACP at 14-15%. (IND-AS are the accounting norms and IRACP is RBI’s Prudential … Read more
Private sector lender YES Bank is looking to set up its own asset reconstruction company (ARC) and has invited an expression of interest (EoI) from prospective investors who could partner with it in setting up this entity. Through its process advisor, Ernst & Young, YES Bank has called for EoIs from investors with strong financial … Read more
The Reserve Bank on Friday allayed the fears of lenders about the rising delinquency levels among small business loan borrowers, who are hit hard by the Covid-19 second wave, saying the numbers are not alarming yet. The government and the central bank push to support MSMEs during the pandemic through credit measures like the emergency … Read more
Banks are likely to transfer about 80 large NPA accounts for the resolution to National Asset Reconstruction Company Ltd (NARCL), which is expected to be operational by next month. NARCL is the name coined for the bad bank announced in the Budget 2021-22. A bad bank refers to a financial institution that takes over the … Read more
India’s macroeconomic troubles are attracting a new wave of global investors betting they can eke out profits from the rising number of capital-starved businesses struggling to stay afloat. Some global heavyweights like Apollo Global Management Inc. and Oaktree Capital Group have either struck recent India deals or scaled up their teams in the country in … Read more
At least Rs 10.52 trillion worth of corporate loans — around 16 per cent of the system-level corporate debt — is likely to default over the next three years due to prolonged slowdown in the economy. Further, around 25 per cent of the vulnerable debt is likely to turn delinquent, resulting in additional Rs 2.54 … Read more