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Market Research Report

The Credit Growth Landscape of India

Published by Frost & Sullivan Product code 374630
Published Content info 30 Pages
Delivery time: 1-2 business days
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The Credit Growth Landscape of India
Published: September 23, 2016 Content info: 30 Pages
Description

Why Cleaning Up of Bank Balance Sheet is Essential to Future Growth

The Credit Growth Landscape of India analyses the causes of a slowdown in non-food credit growth, especially to industry, since 2010. A rise in stressed assets in the balance sheet of banks, particularly those in the public sector, has adversely impacted the credit growth landscape in the country. The report studies the impact of various policy measures taken to revitalize stressed and non-performing assets. Additionally, it suggests policy recommendations for the banking sector. This report would be useful for the companies and investors to understand the current credit landscape in India and help in decision making about future investments in different industries.

Table of Contents
Product Code: 9ADC-40

Table of Contents

Executive Summary

  • 1. Key Findings

Credit Growth Performance in India, FY11-FY17

  • 1. A Steady Decline in Non-food Credit Growth to Industry from 22.4% in FY11 to 0.6% until July FY17
  • 2. Infrastructure and Construction-related Sectors to See the Highest Slowdown in Credit Growth
  • 3. Reasons for Fall in Credit Growth - Stressed Assets or High Interest Rates?
  • 4. Rise in the Share of Non-performing Assets in Total Advances through FY16

Measures to Revitalize Distressed Assets

  • 1. Starting in FY15, the RBI Adopted a Four-step Approach to Revitalize Stressed Assets in the Banking Sector
  • 2. Step 1: Set-up of Central Repository of Information on Large Credits in February 2014
  • 3. Step 2: Guidelines to Form Joint Lenders' Forum Issued in February 2014
  • 4. Step 2: Corrective Action Plan (CAP) by JLF to Resolve Stressed Banking Assets
  • 5. Step 3: Tightening of Conditions to Allow Restructure of Viable Projects only in April 2015
  • 6. Step 3: Tightening of Conditions in April 2015 to Allow Restructure of Viable Projects, only
  • 7. Step 4: Launch of Strategic Debt Restructuring (SDR) Scheme in June 2015
  • 8. Step 5: Scheme for Sustainable Structuring of Stressed Assets (S4A) Launched in June 2016

Policy Recommendations

  • 1. Policy Recommendations - Banking Sector
  • 2. A US $1-Billion Opportunity - Distressed Debt Funds
  • 3. Legal Disclaimer

Appendix

  • 1. The Frost & Sullivan Story
  • 2. Value Proposition - Future of Your Company and Career
  • 3. Global Perspective
  • 4. Industry Convergence
  • 5. 360° Research Perspective
  • 6. Implementation Excellence
  • 7. Our Blue Ocean Strategy
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