 "According to the committee report, 72 per cent of banking sector debt has been impacted from Covid-19")
The KV Kamath Committee’s report has outlined financial ratios for the 26 sectors impacted the most due to the outbreak of Covid-19 pandemic. The benchmarks, analysts say, seem reasonable with debt being split into mild, moderate, and severe.
“The five key ratios -- Debt/equity, Debt/EBITDA, Current Ratio, Debt Service Coverage (DSCR), and Average Debt Service Coverage (ADSCR) -- have been set reasonably, so most companies facing stress should be able to see restructuring. That apart, the committee has also asked banks to split restructured loans into mild, moderate, and severe stress which, we believe, will also be useful to investors to
