Article from INSOL Europe (Week 16 - 22 February 2015) GlobalINSOLvency Editorial Board

The International MonetaryFund recently observed thatIndian corporate entities areamong the highest leveraged inthe Asia Pacific region. RecentReserve Bank of India (RBI)figures show that non-performingloans (NPLs) of the total loanportfolio of the Indian lendershave almost doubled from 2.2% inMarch 2009 to 4.5% in March2014. The rising incidence ofNPLs has been continuously onthe rise due to the economicslowdown after the globalmeltdown in 2008. AlthoughIndia outperformed expectationsriding through the globaleconomic slowdown relativelyunaffected, its exposure to thecrisis was unavoidable. Ultimately,with economic growth slowingdown, delay in implementation ofprojects and rate of interest goingup sharply, corporations havebeen under tremendous financialstress and have been finding itdifficult to repay loans.