Intensifying Covid-19 pandemic and a looming global recession have cast an unprecedented cloud over the credit quality outlook of India Inc, which has already been impacted by a slowing economy. This has forced CRISIL to slash its base-case gross domestic product (GDP) growth forecast for fiscal 2021 to 3.5%1.
Defying general lending caution, unsecured loans1 of non-banks2 are seen growing at over 25% this fiscal, because of rising propensity for personal loans and attractive risk-adjusted returns. That would be four times faster than the 6-8% growth – a decadal low – expected in overall assets under management (AUM) of non-banks.
The viability of Rs 50,000 crore capital expenditure planned in the city gas distribution (CGD) space over the next four years has improved with the price of liquefied natural gas (LNG) expected to be subdued during the period. LNG accounts for nearly half of CGD consumption volume and a lower price augurs well for both volumes and operating margins of distributors, and consequently, project returns.
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