Overview of the Indian Corporate Sector 1989-2002

This paper uses firm-level data to examine the performance of India's nonfinancial corporate sector since 1989 and evaluate its financial vulnerabilities. While promising trends in liquidity, profitability, and leverage of the sector emerged in the early 1990s, they experienced a reversal after...

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Bibliographic Details
Main Author: Topalova, Petia
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2004
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Overview of the Indian Corporate Sector  |b 1989-2002  |c Petia Topalova 
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300 |a 41 pages 
651 4 |a India 
653 |a Depository Institutions 
653 |a Commercial banks 
653 |a Stock exchanges 
653 |a Banks 
653 |a Finance 
653 |a Corporate Finance and Governance: Government Policy and Regulation 
653 |a Banks and banking 
653 |a Industries: Financial Services 
653 |a Financial institutions 
653 |a Ownership & organization of enterprises 
653 |a Micro Finance Institutions 
653 |a Economywide Country Studies: Asia including Middle East 
653 |a Corporate Finance and Governance: General 
653 |a General Financial Markets: General (includes Measurement and Data) 
653 |a Mortgages 
653 |a Economic sectors 
653 |a Nonperforming loans 
653 |a Corporate Finance 
653 |a Business enterprises 
653 |a Corporate sector 
653 |a Corporate governance; role & responsibilities of boards & directors 
653 |a Loans 
653 |a Financial markets 
653 |a Stock markets 
653 |a Banks and Banking 
653 |a Financial Institutions and Services: General 
653 |a Corporate Governance 
653 |a Banking 
653 |a Corporate governance 
653 |a Finance: General 
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520 |a This paper uses firm-level data to examine the performance of India's nonfinancial corporate sector since 1989 and evaluate its financial vulnerabilities. While promising trends in liquidity, profitability, and leverage of the sector emerged in the early 1990s, they experienced a reversal after 1996. Nonetheless, most indicators were still at comfortable levels, and there is evidence of improvement in 2002, the last year in our sample. However, a number of firms still face problems servicing their debt obligations, posing a risk to lenders. In particular, the aggregate interest coverage of the corporate sector indicates that potential nonperforming loans of the corporate sector remain high. This underscores the need for close monitoring of the corporate sector in the future