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Journalism of Courage
Tight funding situation in a market where companies are sitting on high debt is expected to lead to a sharp rise in restructuring of loans by banks.
Crisil has estimated that loans restructured will rise to Rs 3.25 lakh crore in the two years between 2011-12 and 2012-13. The research house has revised its previous estimate of restructured debt by March 2013 from Rs 2 lakh crore.
The report said that loans amounting to Rs 1.6 lakh crore have already been restructured in the financial year 2011-12 and the first quarter of 2012-13.
Crisil said that majority of restructuring will be in loans to the state power utilities,and the construction and infrastructure sectors and the rise in the debt is a result of the significantly higher funding challenges faced by companies with large debt.
Other sectors that the research firm said would witness restructuring includes iron and steel,textiles and engineering.
