|Photo: DNA India|
It comes as a surprise that big corporations are finding ways to deal with debt and the banks are encouraging them to go ahead. As reported in this paper on Thursday, the economic research department of the State Bank of India has found that some of the big corporations are setting aside part of their assets to deal with debt. For example, Anil Ambani’s ADAG has set aside assets worth Rs.59,761 crore to manage a debt of Rs.1,24,956 crore.
That is a little less than 50% of the total debt. Reducing debt will improve not only the balance sheet of the corporation, but also that of the banks with their stressed assets. The banks, ICICI’s Chanda Kochhar has revealed in a media interaction, are encouraging corporations to sell off either core or non-core assets to bring down the debt burden.