International rating agencies, brokerages, and economists have slashed their projections on India’s economic growth. The RBI said the duration of the second wave is the biggest risk to the outlook.
Aided by strong demand recovery, credit ratio rebounds to 1.33 in H2FY21, from 0.54 in H1FY21. GDP could grow at 11% in FY22, but the resurgence in Covid-19 cases is a key downside risk, says CRISIL.
While Indian banks' improved financial metrics do not fully reflect the impact of the Covid-19 pandemic, the under–capitalised PSBs are likely to remain risk averse and lose market share.
The rating agency expects total outstanding supply of corporate bonds to increase from around ₹33 lakh crore in FY20 to ₹65 lakh crore-₹70 lakh crore in FY25, with innovations playing a key role.
Lucknow Municipal Corporation’s ₹200 crore bond, listed on BSE, has seen an oversubscription of 4.5 times and joins 8 Indian cities, together raising an aggregate of ₹3,690 crore.
The credit rating agency points out that the pandemic will continue to be a spoilsport for the NBFCs it reviewed as funding remains a challenge in the current market.
While the rating agency downgraded India’s sovereign rating, BofA Securities’ economists see the present downturn as cyclical rather than structural; say fiscal stimulus is critical for recovery.
The extension, which takes the total day-count of the lockdown to 54, will add to the challenges that the economy was already facing before Covid-19 took the shape of a pandemic.
Facebook’s $5.7-billion investment in RIL’s subsidiary will help both companies monetise their digital platforms; it will also aid in deleveraging RIL’s balance sheet, says Fitch Ratings.
