Covid changes corporate credit scene as cautious companies rush to repay loans

Covid changes corporate credit scene as cautious companies rush to repay loans

Many top Indian companies are simply not making any new investments because of the lack of demand. Many others, though, have made the shift to the capital market for funds instead of going to banks for loans, an SBI research has found.

Banks, sources said, have examined the possibility of moving the National Company Law Tribunal (NCLT) with the Supreme Court last month paving the way for financial creditors to go after personal assets of promoters and directors who stood as guarantors once the borrowing company is taken to bankruptcy court or faces liquidation.

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