This fiscal year [2012-13] India Inc witness more CDR cases than previous fiscal year [2011-12]

We have talked quite a bit about the troubles being faced by countries who have taken on too much debt. But today we shift our attention to some companies. Companies in India. In 2012, a record 126 companies filed cases for debt restructuring for a collective amount of Rs 840 bn. The figure in the previous fiscal year (2011-2012) stood at 87 cases amounting to Rs 680 bn. High interest rates combined with deteriorating macroeconomic conditions have hurt companies in several sectors. As a result, the debt burden has become heavier. This has led to the increase in CDR cases. Increase in CDR cases has two implications. The first is obviously for the corporate as it indicates deteriorating fundamentals. The other and more serious implication is for the banking sector. It means that a lot more accounts could become NPAs.