There is anecdotal evidence that banks in India have been financing distressed firms to delay the recognition of bad loans. Extending credit to firms that face temporary financial stress may be critical for keeping them operational and reviving them. However, lending to firms that are highly distressed and have little or no ability to repay these loans is tantamount to throwing good money after bad. This reduces the supply of bank credit to healthy, more productive firms; hides the true extent of balance sheet impairment; and delays resolution of firms’ distress. Such delays may ...
MORE ON MARKETS:
Copyrights © 2017 Business Standard Private Ltd. All rights reserved.
Upgrade To Premium Services
Business Standard is happy to inform you of the launch of "Business Standard Premium Services"
As a premium subscriber you get an across device unfettered access to a range of services which include:
- Access Exclusive content - articles, features & opinion pieces
- Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
- Access to 17 plus years of content archives
- Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
- End of day news alerts on 5 companies (via email)
- NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
In Partnership with
Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.
Team Business Standard