Q1 results: 40% of corporate loans may require restructuring by banks

Firms that either reported operating losses or poor interest coverage ratio account for Rs 10.7 trn of debt

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Q1 results | Indian companies | Lockdown

Krishna Kant  |  Mumbai 

The quarterly results of listed companies suggest that banks may have to restructure a significant portion of their loan books under the new Reserve Bank of India provisions. The early bird results for the April-June quarter show that companies which either reported operating losses or a poor interest coverage ratio (ICR) accounted for nearly 40 per cent of corporate borrowing.

Together, these companies had debts of Rs 10.7 trillion at the end of March this year. Besides nearly Rs 6 trillion worth of corporate borrowing is accounted for by firms that can slip into the stressed ...
First Published: Fri, August 07 2020. 06:10 IST