Indian firms default on record $1.2 bn of bonds this year as economy slows

Indian companies have defaulted on a record $1.2 billion of bonds so far this year after the shadow bank crisis triggered a credit squeeze, and it doesn’t look like the worst is over.

Those firms that delayed or missed debt payments in 2019 still have $17 billion of notes and loans outstanding including the defaulted securities, according to company documents, exchange filings and data compiled by Bloomberg.

Strains in India’s credit markets following the IL&FS Group’s collapse in 2018 shut access to funding for domestic borrowers, increasing the pace of corporate defaults. A slowdown in the nation’s economic expansion to a six-year low of 5 per cent in the quarter ended June is also hurting companies.

Following are the top companies that missed or delayed debt payments in 2019:

Company	Outstanding debt (billion rupees)
Dewan Housing	488
Reliance Capital	380
Suzlon Energy	132.1
Jet Airways	84.6