Corporate Vulnerabilities in India and Banks' Loan Performance

The financial performance of India's corporate sector has been under pressure since the Global Financial Crisis. Balance-sheet data on a large cross-section of Indian non-financial corporates show that the growth in their leverage over the last 15 years has been associated with a notable increa...

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Bibliographic Details
Main Author: Lindner, Peter
Other Authors: Jung, Sung Eun
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2014
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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651 4 |a India 
653 |a Finance, Public 
653 |a Credit 
653 |a Public-Private Enterprises 
653 |a Banks 
653 |a Finance 
653 |a Banks and banking 
653 |a Industries: Financial Services 
653 |a Mortgages 
653 |a Money 
653 |a Capital and Ownership Structure 
653 |a Goodwill 
653 |a Civil service & public sector 
653 |a Bank credit 
653 |a Macroeconomics 
653 |a Banking 
653 |a Firm Behavior: Empirical Analysis 
653 |a Financial Risk and Risk Management 
653 |a Financing Policy 
653 |a Depository Institutions 
653 |a Commercial banks 
653 |a Public Enterprises 
653 |a Monetary economics 
653 |a Public sector 
653 |a Financial institutions 
653 |a Value of Firms 
653 |a Micro Finance Institutions 
653 |a Monetary Policy, Central Banking, and the Supply of Money and Credit: General 
653 |a State-owned banks 
653 |a Corporate Finance and Governance: General 
653 |a Economic sectors 
653 |a International Finance: General 
653 |a Loans 
653 |a Banks and Banking 
653 |a Money and Monetary Policy 
653 |a Financial Crises 
700 1 |a Jung, Sung Eun 
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520 |a The financial performance of India's corporate sector has been under pressure since the Global Financial Crisis. Balance-sheet data on a large cross-section of Indian non-financial corporates show that the growth in their leverage over the last 15 years has been associated with a notable increase in the vulnerabilities of firms carrying high interest payment burdens. Gauged by the debt carried by the most vulnerable component of firms, the Indian corporate sector’s vulnerability to severe systemic shocks has increased to levels not seen since 2001. Progress on the macroeconomic front, together with improved credit appraisals and stricter impairment standards on the bank side, will be critical to help India's banks resume their role as economic growth drivers