Corporate debt recast process hits road block: Report

Over 200 accounts to turn into NPAs

by Janhavi Behere

Corporate debt restructuring has hit a road block as banks are refusing to clear proposals following the arrests of IDBI bank’s former chairman Yogesh Agarwal and three other bankers, who approved the Rs.9 billion loan to Kingfisher Airlines. The banks now are awaiting for an additional layer of clearance apart from the nod given by bank’s management, as per a report by Business Standard. As a result, over 200 accounts in different stages of loan restructuring are likely to miss the March-end deadline and fall into the NPA category. Earlier, banks had written to the RBI seeking relaxation in debt recast norms[see].

References
1. http://www.business-standard.com/article/companies/large-corporate-loan-recast-to-miss-march-deadline-117031900537_1.html
CMIE STATISTICS
Unemployment Rate
Per cent
4.6 -0.0
Consumer Sentiments Index
Base September-December 2015
96.3 +0.7
Consumer Expectations Index
Base September-December 2015
95.7 +0.9
Current Economic Conditions Index
Base September-December 2015
97.3 +0.5
Quarterly CapeEx Aggregates
(Rs.trillion) Dec 16 Mar 17 Jun 17 Sep 17
New projects 2.33 3.83 2.07 1.03
Completed projects 1.01 1.94 1.16 1.00
Stalled projects 1.14 0.73 2.67 0.67
Revived projects 0.18 0.67 0.30 0.29
Implementation stalled projects 0.83 0.33 0.68 0.62
Updated on: 15 Dec 2017 8:20PM
Quarterly Financials of Listed Companies
(% change) Dec 16 Mar 17 Jun 17 Sep 17
All listed Companies
 Income 6.2 10.2 9.8 8.2
 Expenses 6.3 11.9 10.0 9.4
 Net profit 40.2 16.0 -19.6 -18.1
 PAT margin (%) 6.0 6.0 5.3 5.6
 Count of Cos. 4,509 4,444 4,325 4,156
Non-financial Companies
 Income 5.9 11.8 10.4 8.1
 Expenses 7.2 15.6 10.6 8.0
 Net profit 24.5 -2.3 -25.0 -5.4
 PAT margin (%) 6.2 6.2 5.2 6.4
 Net fixed assets 6.9 9.3
 Current assets 2.7 80.1
 Current liabilities 8.8 10.2
 Borrowings 4.8 10.5
 Reserves & surplus 6.3 5.3
 Count of Cos. 3,484 3,440 3,358 3,226
Numbers are net of P&E
Updated on: 15 Dec 2017 8:20PM
Annual Financials of All Companies
(% change) FY14 FY15 FY16 FY17
All Companies
 Income 10.0 5.2 1.1 6.7
 Expenses 9.9 5.2 1.2 6.9
 Net profit -2.3 1.4 -13.1 20.6
 PAT margin (%) 3.2 3.2 2.9 6.4
 Assets 12.3 9.4 9.7 8.6
 Net worth 9.6 8.7 10.6 7.9
 RONW (%) 6.2 6.1 5.1 9.2
 Count of Cos. 24,045 23,818 20,791 4,756
Non-financial Companies
 Income 9.7 4.3 0.1 6.7
 Expenses 9.3 4.5 -0.6 7.5
 Net profit -2.7 -5.8 11.6 14.6
 PAT margin (%) 2.2 2.1 2.6 6.3
 Net fixed assets 11.6 13.3 15.5 7.3
 Net worth 8.1 7.1 11.0 6.3
 RONW (%) 5.1 4.9 5.4 10.3
 Debt / Equity (times) 1.1 1.1 1.1 0.7
 Interest cover (times) 2.0 1.9 2.0 3.4
 Net working capital cycle (days) 69 67 66 49
 Count of Cos. 19,288 19,270 17,281 3,624
Numbers are net of P&E
Updated on: 04 Dec 2017 11:59AM

Data added for HPI at Assessment prices and HPI at Market prices