With bad debt expected to surge — especially from firms in the medium to small segment — in the coming months because of the pandemic, bankers are expecting several stressed funds to set up shop in India.
Bankers are expecting an additional bad debt worth up to $35 billion which will be up for grabs, in addition to the $110 billion of non-performing assets (NPAs) already in the banking system. “Cash flows of several Indian firms have been impacted, hence the companies will be restructuring their books. This is an opportunity for the stressed funds to set up shop in India,”