, Columnist
Private Credit in India Is Closing Deals — And Its Eyes
Are overeager investors pricing credit risks correctly? Some recent transactions have raised doubts.
India is a sizzling market for private credit.
Photographer: Dhiraj Singh/BloombergIndia is a sizzling market for private credit, though some participants are wondering if in their eagerness to close deals, investors are shutting their eyes to risks, especially the legal minefields around collateral and bankruptcy.
A decade ago, India’s banks were struggling with the world’s biggest load of soured corporate loans. At about $200 billion, the write-offs on that exposure have been large. Deposit-taking institutions that tried to recover the debt via insolvency proceedings have had to accept harsh haircuts.