India's Banking System to be Tested by High Borrowing Costs: Fitch Ratings

摘要

Fitch Ratings says India's banking system will come under strain as the highest borrowing costs in Asia prompt lenders to recast an unprecedented amount of loans. Restructured loans will rise by ^1 trillion from end-September to a record 4.7 trillion by March, according to India Ratings and Research Pvt. Ltd, Fitch's local unit. That will take lenders'stressed assets, including soured debt, to 14% of advances, the highest since 2000. "With credit metrics for many companies at a decade-low, we expect a record amount of restructuring in the next four months," Deep Narayan Mukherjee, a senior director at India Ratings in Mumbai, said in a 24 November phone interview. "Margins at many of these firms are barely enough to service the interest."