India's shadow banks hit with $15.1b in debt repayments

Meeting the deadlines will be a challenge given the domestic funding crunch.

India’s troubled shadow lenders need to repay $15.1b of local-currency bonds in the three months beginning April, their most-ever for a quarter, according to data compiled by Bloomberg.

This will prove challenging for the lower-rated lenders as given they’ve been largely shut out of the domestic funding market.

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Compared to their top-rated non-bank financing companies, weaker firms are still at big risk from defaults. Meanwhile, more missed payments could undermine the Indian administration’s efforts to boost credit in an economy set to grow at its slowest pace in more than a decade.

The top five Indian companies with the highest amount of rupee notes falling due in the next quarter owe $7.46b (546 billion rupees) to investors, or about half of the total amounts due.

Here’s more from Bloomberg.