Debt Downgrades Can Push India Bank Fund Raising to $20 Billion
- 2.5 trillion rupees of debt has already been downgraded: CS
- State-run banks will need $13 billion from government, CS says
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Indian banks may have to raise $20 billion over the next year amid rising risks to their asset quality from borrowers that have seen debt rating downgrades, according to Credit Suisse Group AG.
“We estimate 2.5 trillion rupees ($33 billion) of debt has already been downgraded to ratings that are likely to make refinancing challenging,” analysts including Ashish Gupta wrote in note Tuesday. “These ‘fallen angels’ have 220 billion rupees of bond repayments due in the next 12 months,” the note added.