Bankruptcy code boosting corporate bonds: CRISIL
The Dollar Business Bureau The various initiatives of Indian government and the newly introduced Insolvency and Bankruptcy Code, 2016 are boosting the country’s corporate bond market, said CRISIL in a report. According to it, lesser profitability of public sector banks (PSBs) has reduced their capability in accruing capital. Weak performance, particularly due to the rise in non-performing assets (NPAs), has created a challenging environment for the PSBs in raising money from the capital market. Higher provisioning is another factor that has weakened the ability of PSBs in offering better interest rates. Along with the rise in credit demand, capital requirement would also increase. There are also several other imperatives of growth, the report states. India will require Rs.43 lakh crore (approximately $650 billion) for ...
Current corporate, PSB scenario could hit Indias economic growth: IMF
India has clocked a 7.3% GDP growth rate so far during this financial year, and IMF has projected it to grow at 7.5% in the financial year 2016-17, making it the world’s fastest growing economy in 2016-17 The Dollar Business Bureau CRISIL revised outlook of five nationalised banks - Andhra Bank, BOB, Canara Bank, PNB and Punjab & Sind Bank - from ‘stable’ to ‘negative’ International Monetary Fund (IMF) on Thursday cautioned India of its current corporate financial position and public bank asset quality and said it could pose risk to the country’s economic recovery, even though the country is well placed among the world’s leading emerging markets. “Vulnerabilities in corporate financial positions and in public bank asset quality could ...
