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Tag: $207

Banks squeeze India firms harder in $207 billion bad loan fight

Banks squeeze India firms harder in $207 billion bad loan fight

Finance
By Anurag Joshi and Anto AntonyRoiled by India’s high-profile corporate defaults, the nation’s lenders are tightening the screws on borrowers with stricter debt covenants and greater enforcement as the battle to curb delinquent loans intensifies. Banks are asking for collateral that may amount to one-and-a-half times the value of the debt on new loans extended and are insisting on contracts that allow loans to be turned to equity if the account becomes stressed, said Prabal Banerjee, chief financial officer at Bajaj Group. Borrowers in telecom, thermal power and steel businesses are among those facing strict terms, said S&P Global Ratings analyst Abhishek Dangra. “Banks are trying their level best to recover what they can upfront at the first sign of trouble,” said Rethish Varma, a B...