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Bank Loan Restructuring: The Next Wave
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The macro environment in India continues to witness a steady deterioration in 2012-13 with lower projected GDP growth and higher pressure on corporate credit quality. CRISIL estimates the loan restructuring by banks to increase sharply to Rs.3.25 trillion between 2011-12 and 2012-13 against our earlier estimate of Rs.2 trillion. This is primarily due to the increased stress in the funding environment, especially for corporates with large debt such as state power utilities, and construction and infrastructure companies. Also, banks' gross NPAs are expected to rise to 3.5 per cent by March 2013 from around 3.0 per cent as at June 2012.
In this context, the key questions that arise are: Which sectors are likely to account for the bulk of restructuring being projected by CRISIL? What are the expected slippages from such restructured loans and what is the outlook on NPAs? Is the level of stress similar across all banks? What sustains the credit profile of banks in such an environment? To help you find answers, CRISIL Ratings invites you to participate in a Webinar-cum- Teleconference "Bank Loan Restructuring: The Next Wave"