Debt rising but profit diving for many large firms

Credit Suisse tracks some large companies that are also highly indebted. 

The brokerage calls these companies ‘House of Debt’. According to the agency, the debt to Ebitda (earnings before interest, tax, depreciation and amortisation) ratio for many of these companies is more than 10 times, but profitability in most of these has sharply deteriorated. This shows these firms will struggle to service their debt to banks. Many of these firms have already caused bad debts in banks. 

The RBI’s insolvency proceedings could be directed against some of these highly indebted companies. “Even in the larger