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.
The pandemic, ultimately, was unsuccessful in denting the country's capital raising confidence, as India Inc. raised over ₹1.88 lakh crore, beating the record of over ₹1.75 lakh crore raised in FY18.
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.
At its first monetary policy review for 2021, the central bank kept key rates unchanged, while announcing several measures to manage liquidity.
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 gloom prevails across economies, a State Bank of India report says that the Reserve Bank of India has been relatively successful in ensuring financial stability in the market since May.
Tracking the implications of Ind AS 109 and ECL provisioning for India’s banks and NBFCs.
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.
The central bank announces ₹50,000 crore special liquidity facility for mutual funds to help debt funds tide over market disruptions caused by Covid-19.
With most industries having made a hard stop, the ‘productive on-lending’ that the RBI envisages may remain a pipe dream.
