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Feb 18th
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Crisil: 188 companies defaulted in FY12

Crisil Ratings has downgraded a total of 188 entities and one third of them have been placed under the default category.

According to CRISIL, this is the highest in a single year in absolute terms, and on a relative basis, translates into a 10-year high annual default rate of 3.4%.
"These pressures are also reflected in the increase in banks' gross non-performing assets (NPAs; to 2.9 per cent of advances from 2.3 per cent), and in the quantum of debt restructured (to 3.3 per cent of advances from 2.5 per cent) between March 31 and December 31 of 2011," the CRISIL release said.
"Weak liquidity caused by elongation of working capital cycles is the primary reason for the defaults. This trend is likely to persist with slowing demand," Roopa Kudva, Managing Director and Chief Executive Officer, CRISIL, said in the release.
Sectors that will continue to be under stress are- textile, steel and construction engineering, power, commercial real estate and the new telecom players. But the ratings agency says, the operating profitability for the services sector and established telecom players will improve in the current financial year.
"The credit quality of India's corporates will remain under pressure, given the slowdown in demand. However, high operating rates, softening in commodity prices and flexibility to defer capital expenditure will help players offset profitability pressures, and tackle slackening in demand," said Ramraj Pai, President, CRISIL Ratings.

Experian launches its new generation of Indian Bureau Scorecards

Experian Credit Information Company of India, today announced the launch of the next generation of Experian Delphi Credit Scores for customer acquisition and management t...

RBI asks banks to use credit information for lending to corporates also

The Reserve Bank today said it expects banks to use credit bureaux information not just for retail borrowers but equally for corporates also.

“Commercial banks are increas...

CIBIL aims to include mobile bill payment history to calculate the credit worthiness

NEW DELHI: Cibil, the country's credit information bureau, is taking steps to include mobile and telephone bill payment history to calculate the credit worthiness of an in...

Downgrades outnumber upgrades, say Crisil, ICRA

MUMBAI: Credit rating agencies Crisil and ICRA have said that downgrades in ratings of Indian companies have outnumbered upgrades in the recent quarters due to weakening l...

IFC to bring microfinance credit bureaus in India

International Finance Corporation Global Credit Bureau Program provides advisory services and expert advice on the development of credit reporting infrastructure through ...

Top 100 defaulting industrialists list buried on CIBIL site

Few days ago, Activist PP Kapoor sought information regarding top 100 bank loan defaulters from the Reserve Bank of India who had not repaid debt taken from nationalised ...

SBI: new member of Experian credit bureau

The domestic arm of the Irish credit information service provider Experian announced that the State Bank of India has signed up as its member.
"The State Bank is the larg...

Damodaran Committee’s recommendation on credit reports

Credibility of borrowers came under scanner when banks gave wrong credit information reports to credit bureaus. 
The Damodaran Committee appointed by the Reserve Bank of ...
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