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Corporate credit growth slows as banks prefer PSUs, top-rated cos

Lenders restrict funds to companies with lower ratings

Quick fixes won't solve growth problem

Corporate credit growth by leading Indian banks has slowed down in the first half of the current fiscal to low single digits, as lenders are preferring high-rated corporates or public sector units to lend fresh funds. The second-quarter results of the Indian banks, which are sitting on a mountain of bad debt, shows that they are cautious while giving out loans to stressed companies and sectors as they burnt their fingers in the past. Besides, bankers said very few companies are launching large projects which would require high capital from them. Statistics collated of the top ...