Rising cases of debt recasts & NPAs

There’s a sharp spurt in quantum of loans referred for debt recast. Till December 2011, the Corporate Debt Restructuring (CDR) cell had restructured loans worth Rs 142,514 crore; debt recast proposals of Rs 52,727 crore were referred to the CDR between January and March 16, 2012. Credit rating agency S&P expects a sharp rise in restructured loans in financial years 2012 and 2013, due to the moderation in economic activity, high inflation, and high interest rates. 

Here’s a list of the top 20 proposals for debt recast in 2011-12. These includes companies trying to grow too fast (GTL), acquisitions gone wrong (Bharati Shipyard) or projects grounded for violating environment laws (HCC). 

 

(Click here to see graphics)