Borrowing Costs for India’s Shadow Banks Retreat on RBI Move
- Rupee bond spreads fall by the most in four months in October
- Bloomberg custom indexes show ample cash, stable share prices
Despite the various efforts by Indian authorities, there are lingering concerns among investors that bad debt may increase in the non-bank sector as the shock waves from the pandemic looms.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
India’s central-bank move to pump more cash in the credit market has improved the health of shadow lenders, helping to assuage concerns about their revival prospects.
Average spreads on the lenders’ AAA rated five-year bonds fell by the most in four months in October. Three other indexes tracking shadow bank sector health compiled by Bloomberg, ranging from banking-system liquidity to outstanding debt and share performance, all remained steady.