Sunday, November 2, 2008

Indian Banks are in for a tough time

After the slowdown comes default. I am talking about lending of banks to corporates. I went through BSE SMALL CAP index companies to find out which of the companies are vulnerable and can default on their debts. Following is the list:

Abhishek IndustriesTextiles1285.59
Alok IndustriesTextiles5767.31
Ankur DrugsPhramaceuticals618.14
Asahi IndiaGlass1391.43
Bajaj Hindustan SugarSugar919.42
Era InfraInfrastructure1447.09
Piramal GlassGlass732.3
Rajasthan Spinning & Weaving MillsTextiles1064.41
Stride ArcolabPharmaceuticals1062.77

I have included only those with debt more than 500 Cr. There are many with debts between 250 and 500 Cr. And also notice that these are small companies in BSE SMALL CAP and not in BSE 500. Similar examples will be found in BSE 500 too but might be lesser. The banks which would have lent to these companies will see their NPAs rise in the next one year. Most of them are from beaten down sectors like textiles, sugar and Infrastructure. I will keep track of these companies.
Bookmark and Share

No comments:

Related Posts with Thumbnails