14% rise in corporate debt under stress

80 firms with debt of Rs 5 lakh crore unable to service interest cost

Disruption caused by demonetisation and the economic slowdown seems to have complicated banks’ efforts to recover their dues from financially stressed companies. There was a further rise in the amount of bank debt tied up with stressed firms in 2016-17, reversing the improvements visible in 2015-16, when there was a year-on-year (YoY) decline in corporate debt under stress.

Corporate debt under financial stress was up 14 per cent, year on year, to Rs 5.07 lakh crore in 2016-17, against Rs 4.44 lakh crore a year ago. In contrast, corporate debt under stress