G07-Corporate Governance

 Will the corporates sink our banks? A credible study warns of over leveraging | MONEY TRAIL https://www.youtube.com/watch?v=mD7V6xnprFU
12 views Sep 5, 2022 'Take loans as much as you want and expand your empire' - this seems to be new corporate mantra. A study by CreditSights, affiliated to the credit rating agency Fitch warns about over leveraging. Indian corporates are investing less and depending more on loans and bonds. Though the study is more worried about bonds' sustainability what should worry us are our banks. Indian banks are so exposed to corporate loans - 45% of total loans - that if some of it goes bad it can bring down some banks. Nevertheless even PSU banks are getting more into corporate loan business. They are closing branches, cutting down staff strength and diminishing their presence in small loans sector. Choosing corporates over people for more profit. But on the doomsday it will cost heavily.