Corporate debt recast process hits road block: Report

Over 200 accounts to turn into NPAs

by Janhavi Behere

Corporate debt restructuring has hit a road block as banks are refusing to clear proposals following the arrests of IDBI bank’s former chairman Yogesh Agarwal and three other bankers, who approved the Rs.9 billion loan to Kingfisher Airlines. The banks now are awaiting for an additional layer of clearance apart from the nod given by bank’s management, as per a report by Business Standard. As a result, over 200 accounts in different stages of loan restructuring are likely to miss the March-end deadline and fall into the NPA category. Earlier, banks had written to the RBI seeking relaxation in debt recast norms[see].

References
1. http://www.business-standard.com/article/companies/large-corporate-loan-recast-to-miss-march-deadline-117031900537_1.html
CMIE STATISTICS
Unemployment Rate
Per cent
3.6 +0.1
Consumer Sentiments Index
Base September-December 2015
95.8 0.0
Consumer Expectations Index
Base September-December 2015
96.8 0.0
Current Economic Conditions Index
Base September-December 2015
94.1 0.0
Quarterly CapeEx Aggregates
(Rs.trillion) Sep 16 Dec 16 Mar 17 Jun 17
New projects 2.37 1.46 2.93 1.64
Completed projects 2.23 0.94 1.83 1.10
Stalled projects 0.65 1.01 0.35 2.45
Revived projects 0.91 0.17 0.62 0.29
Implementation stalled projects 0.37 0.81 0.33 0.64
Updated on: 19 Aug 2017 8:20PM
Quarterly Financials of Listed Companies
(% change) Sep 16 Dec 16 Mar 17 Jun 17
All listed Companies
 Income 2.1 6.2 10.3 10.1
 Expenses 1.9 6.4 11.9 10.1
 Net profit 14.6 40.3 17.6 -16.3
 PAT margin (%) 6.9 6.1 6.1 6.0
 Count of Cos. 4,495 4,497 4,400 2,770
Non-financial Companies
 Income 0.6 6.0 11.8 10.8
 Expenses -0.2 7.3 15.6 10.7
 Net profit 26.6 24.6 -1.4 -21.0
 PAT margin (%) 6.9 6.2 6.3 6.0
 Net fixed assets -9.2 7.6
 Current assets 8.1 2.2
 Current liabilities 11.6 8.6
 Borrowings 3.1 4.9
 Reserves & surplus 8.4 6.5
 Count of Cos. 3,481 3,487 3,421 2,031
Numbers are net of P&E
Updated on: 19 Aug 2017 8:30PM
Annual Financials of All Companies
(% change) FY13 FY14 FY15 FY16
All Companies
 Income 12.6 10.0 4.9 1.0
 Expenses 12.8 9.8 5.0 1.2
 Net profit 0.9 -2.3 1.3 -15.2
 PAT margin (%) 3.5 3.2 3.2 3.0
 Assets 14.3 12.3 9.3 8.8
 Net worth 9.6 9.6 8.8 7.6
 RONW (%) 6.8 6.2 6.1 5.3
 Count of Cos. 25,384 22,944 22,236 18,452
Non-financial Companies
 Income 11.9 9.7 4.1 0.0
 Expenses 12.2 9.3 4.2 -0.6
 Net profit -8.6 -2.6 -6.1 6.3
 PAT margin (%) 2.4 2.2 2.2 2.7
 Net fixed assets 12.9 11.6 13.0 13.9
 Net worth 7.8 8.6 7.4 6.9
 RONW (%) 5.5 5.1 4.9 5.6
 Debt / Equity (times) 1.1 1.1 1.1 1.0
 Interest cover (times) 2.1 2.0 1.9 2.0
 Net working capital cycle (days) 72 69 67 67
 Count of Cos. 19,804 18,286 17,814 15,125
Numbers are net of P&E
Updated on: 04 Aug 2017 3:37PM

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