Failure to Cut Debt Lifts Builder Yields Above 20%: India Credit

India’s biggest developers are failing to rein in record debt as borrowing costs above 20 percent and the worst economic slump since 2009 erode earnings.

DLF Ltd., the largest builder, had liabilities minus cash of 242.7 billion rupees ($4.7 billion) last quarter, an all-time high, data compiled by Bloomberg show, as the company delayed asset sales. Net debt at Godrej Properties Ltd., the fourth-biggest by market value, reached unprecedented levels as the central bank raised interest rates to a three-year high. Developers sold debt at between 18.5 percent and 23 percent this quarter, National Securities Depositary Ltd. data show.