CRISIL’s rating actions in fiscal 2017 indicate credit quality of India Inc. is gradually recovering, but the underpinnings remain fragile because some sectors continue to struggle and several large companies remain highly indebted. As a result, the gross non-performing assets (GNPAs) in banking are expected to remain at elevated levels.
CRISIL’s credit ratio for fiscal 2017 stood at 1.22 times, which is similar to the 1.29 times seen in fiscal 2016, while debt[1]-weighted credit ratio improved to a five-year high of 0.88 times compared with 0.31 time last fiscal.
