INSUBCONTINENT EXCLUSIVE:
Mumbai: Non-banking finance companies (NBFCs) are better placed with adequate liquidity to manage capital market debt repayments over the
next two months and just about 4 per cent of total debt is in shaky sectors such as aviation, gems and jewellery, real estate that could
blow up, said rating company Crisil.
Among the industries, companies in pharma, telecom, fertilisers and consumer goods sectors will have
limited revenue impact, finds a study
industries, excluding the financial services, which accounts for 71 per cent of total debt, are in high resilience category, it said
These are like pharmaceuticals, fertiliser, oil refineries, power - gas distribution, telecom and fast moving consumer goods.
Nearly 52 per
cent of debt is in sectors expected to be in moderately resilience category, such as automobile manufacturers, power generators, roads and
Only around 4 per cent of debt is in sectors that are least resilient, such as airlines, gems and jewellery, auto dealers and real estate,
through bonds and commercial paper as no moratorium has been announced on such paper.
Even as the Reserve Bank of India facilitating a
moratorium on servicing of loans from banks has come as breather to borrowers, credit quality trends would be driven by the ability of
companies to rebound from the near-standstill, said Crisil.
The firm expects a modest recovery in vehicle loans and affordable home loans
segments once the lockdown is lifted
But sees challenges in unsecured microfinance, and loans to small and medium enterprises over the next 9-12 months because of the weak
credit profile of borrowers and expectations of only a gradual recovery in the economy.