Notes on Indian equities, sectors and economy

CDR amount jumped 50% in FY13

Posted by fairval on June 11, 2013

CDR seems to be a busy outfit. The number of cases and amount of debt in its purview has increased every single year since FY09. In that lot, while FY09 was a tough year when GDP grew only 6.7%, the next 2-3 years werent quite all that bad. GDP grew 8%, 8.5% and 7.2% in FY10, FY11 and FY12. Despite this, industry seems to have steadily slid downwards. This could also be a offshoot of the boom years till FY08. In any boom, too many questionable projects get funded.

The clean-up, as this table shows, isnt easy or quick. The last time around, from FY98 to FY04, for 7 long years, capex came to a halt. This seems to be similar, we are getting close the end, but not in FY14Rising CDR trend

Rising CDR trend



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