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India Inc s credit quality improves sharply in H2FY21, likely to sustain
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Last Updated: Apr 01, 2021, 06:46 PM IST
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Synopsis From an outlook perspective, credit quality will sustain in the next fiscal because of the fiscal policies in the budget, unlocking which is underway, its managing director Gurpreet Chhatwal told reporters.
Improvement in economic climate and policy measures have helped in a sharp reversal in the ratio of upgrades to downgrades of company debt and led to expectations of the same being sustained going forward, domestic credit rating agency
Crisil said. The credit ratio, which denotes the number of firms upgraded for each downgrade, improved to 1.33 in the second half of the financial year 2021, from a decadal low of 0.54 in the preceding half, while the debt-rated credit ratio which acts by the quantum of loans outstanding improved to 1.26 from 0.52, it said.
India bond market: Indian corporate bond market can double to Rs 65-70 lakh cr by March 2025: Crisil indiatimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from indiatimes.com Daily Mail and Mail on Sunday newspapers.
The demand for corporate bonds, however, is likely to be Rs 60-65 lakh crore by March 2025. Over the next five fiscals, corporate bond issuances outstanding could more than double from around Rs 33 lakh crore or 16 per cent of gross domestic product (GDP) at the end of fiscal 2020 to Rs 65-70 lakh crore tantamount to 22-24 per cent of GDP by the end of fiscal 2025, the agency s Managing Director Gurpreet Chhatwal said during a webinar. The financial sector will contribute around 50 per cent of the incremental supply, followed by innovation (close to 25 per cent) and infrastructure (about 20 per cent), the agency said.