Top 50 Indian Firms Deleverage Balance Sheets, Reduce Debts by Approx. Rs 60K Crores
In a bid to deleverage their balance sheets, top 50 Indian companies have reduced their debt by Rs 59,600 crores in the first half of this fiscal year.
These companies had reduced their debts by about Rs 43000 crores in FY 2018-19, as per the sources.
According to sources, the move holds significant relevance to the credit growth of banks as the companies borrowing loans from local lenders has reduced.
Indian companies are seeking other funding methods that provide loans at much lower rate when compared to banks. Instruments like External commercial borrowing (ECB) is a viable alternative outside the banks. Besides, the domestic companies have worked to reduce their debts in response to the present legal framework.
According to the recent Reserve Bank of India (RBI) data, the ...
