Covid-19 may turn extra Rs 1.67 trn debt into delinquent assets: Ind-Ra

This is over and above Rs 2.54 trillion anticipated prior to onset of pandemic, taking the overall quantum to Rs 4.21 trillion, or 6.63% of total debt

The impact of Covid-19 and the subsequent policy response may turn an additional Rs 1.67 trillion of debt, among the top 500 debt-heavy private sector borrowers, into delinquent assets by FY22, according to India Ratings.

This would be over and above the Rs 2.54 trillion anticipated prior to the pandemic, thus taking the total to Rs 4.21 trillion. This comprises 6.63 per cent of the overall debt (previous estimate: 4 per cent).

Given that 11.57 per cent of the outstanding debt is already stressed, the proportion of the same may rise to 18.21 per cent. Ind-Ra expects the corresponding credit cost —