With no end to NPA woes, cos turn to foreign banks to raise offshore funds

India’s companies are growing more dependent on banks to raise offshore funds going into 2019 as the bond markets sputter and local-currency funding from domestic banks dries up.

Borrowers that are facing challenges in the credit market are finding solace in dollar-denominated loans, even as non-performing debt at local banks, volatility in the rupee and uncertainty over national elections next year add to pressure on financing costs.

The downfall of shadow lender IL&FS group has fueled concerns about default risks, making banks cautious and pushing up the cost some firms pay for loans at home.

Companies are increasingly turning to overseas lenders, as