Professional Documents
Culture Documents
11/ 19/ 12
increased its debt from Rs44bn to almost Rs700bn in the past five years and its debt to its earnings before interest, tax, depreciation and amortisation is almost 14 times. Essars debt has ballooned to Rs938bn from Rs246bn in the same period and its interest coverage stands at a mere 0.6 per cent. Many of these companies have valuable assets. But they are not producing sufficient cash flow to repay loans and asset sales are difficult as buyers wait for prices to fall further. It is difficult to know the full extent of StanCharts exposure to these big borrowers, with some exposure syndicated to other banks. In many cases, though, the lender has taken collateral in the form of company shares, which have lost much of their value in recent months, according to people familiar with the matter. StanChart declined to comment.
1. http://markets.ft.com/tearsheets/performance.asp?s=uk:STAN 2. http://markets.ft.com/tearsheets/performance.asp?s=in:KFA
2/ 2