Shadow Banks in India Face Their Biggest Funding Test Yet
- Bond maturities may pay pose challenges for weaker firms
- Record 1.1 trillion rupees in notes due in April-June period
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India’s troubled shadow banks face their biggest test yet in the months ahead: a record bill to settle in the local debt market.
The lenders will need to repay 1.1 trillion rupees ($15.1 billion) of local-currency bonds in the three months starting April 1, the most ever for a quarter, according to data compiled by Bloomberg. That will prove challenging for the lower-rated ones among them, given they’ve been largely shut out of the domestic funding market.