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Around Rs 10.52-trn corporate debt may default over 3 years: India Ratings

Empirically, about 25 per cent of the vulnerable debt is likely to turn delinquent - resulting in additional Rs 2.54 trillion of delinquent debt

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3 min read Last Updated : Mar 03 2020 | 1:23 PM IST

At least Rs 10.52 trillion worth of corporate loans — around 16 per cent of the system-level corporate debt — is likely to default over the next three years due to prolonged slowdown in the economy. Empirically, about 25 per cent of the vulnerable debt is likely to turn delinquent – resulting in additional Rs 2.54 trillion of delinquent debt, according to a report by India Ratings & Research.

There is an existing Rs 7.35 trillion of corporate debt in the system and with the additional Rs 2.54 trillion of delinquent debt, the overall debt that becomes vulnerable to default is

Topics : corporate debt trade Corporate loans India Inc India Ratings

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