You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
STRONG ON CONSUMPTION<br />
NNPAs of SCBs<br />
The good news is that the FSR has also highlighted of<br />
improvements in the corporate sector and that the<br />
stressed companies are deleveraging fast and the number<br />
of ‘weak’ companies in the economy is declining. Based on<br />
analysis of 1,800 to 2,600 Non Government Non Financial<br />
(NGNF) listed companies, the FSR report concluded that<br />
the proportion of “leveraged” companies declined sharply<br />
from 19% in March 2015 to 14% in March <strong>2016</strong>. The<br />
proportion of “highly leveraged” companies also declined<br />
from 14.2% to 12.9% over the same period. Moreover, the<br />
share of debt of these companies in the total debt also<br />
came down from 23.0% to 19.0%. The analysis also<br />
highlighted improvement in the debt servicing capacity<br />
and leverage of weak companies (interest coverage<br />
ratio
Change language