, Columnist
India Inc.'s Debt Addiction
Companies are straining to service their obligations as bad loans soar.
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China's borrowing spree grabs headlines, but India's current corporate earnings season is also proving to be all about debt. More precisely, it's proving to be about the folly of investors' ardent hope that somehow companies and banks will outgrow their liabilities even in a slow economy. As two results on Thursday underscored, rather than getting on top of the problem, India Inc. is sinking deeper under the weight of leverage.
The first of those announcements came from ICICI Bank.