Huge Wall of Maturing Debt Looms for India's Shadow Lenders
- Record 1.1 trillion rupees of bonds come due in third quarter
- Tough credit environment worsened as NBFC credibility shaken
A man looks up at an electronic ticker board that indicates stock figures at the Bombay Stock Exchange in Mumbai, India.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
Facing a record amount of debt that’s about to mature, India’s non-bank financing companies are finding their troubles worsening as a crisis of credibility starts to bite.
The shadow lenders, which have been under increased strain after the collapse of IL&FS Group last year, have a record 1.1 trillion rupees ($15.8 billion) of local-currency bonds due next quarter, according to data compiled by Bloomberg. Refinancing the obligations poses a challenge as investor concerns flare amid mounting problems such as auditors quitting, repayment problems and allegations of embezzlement.