{
  "title": "Overview of the Indian Corporate Sector: 1989-2002",
  "publication": "IMF Working Papers, April 1, 2004",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/overview-of-the-indian-corporate-sector-1989-2002-17299",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/30/overview-of-the-indian-corporate-sector-1989-2002-17299",
  "overlayPath": "/en/publications/wp/issues/2016/12/30/overview-of-the-indian-corporate-sector-1989-2002-17299/index.md",
  "summary": "This paper uses firm-level data to examine the performance of India's nonfinancial corporate sector since 1989 and evaluate its financial vulnerabilities.",
  "sections": [
    {
      "heading": "Summary findings",
      "content": "- Uses firm-level data to examine performance of India's nonfinancial corporate sector since 1989 and evaluate financial vulnerabilities.\n- Promising trends in liquidity, profitability, and leverage emerged in the early 1990s.\n- Trends experienced a reversal after 1996.\n- Most indicators were still at comfortable levels despite the reversal.\n- Evidence of improvement in 2002, the last year in the sample.\n- A number of firms still face problems servicing their debt obligations, posing a risk to lenders.\n- The aggregate interest coverage of the corporate sector indicates that potential nonperforming loans of the corporate sector remain high.\n- Conclusion: underscores the need for close monitoring of the corporate sector in the future."
    },
    {
      "heading": "Financial vulnerabilities and risk signals",
      "content": "- Persistent debt-servicing problems for a subset of firms.\n- High potential nonperforming loans as signaled by aggregate interest coverage.\n- Reversal of earlier improvements after 1996, despite overall comfortable indicator levels."
    },
    {
      "heading": "Policy implications and recommended actions",
      "content": "- Close monitoring of the corporate sector going forward to track debt-servicing capacity and nonperforming loan risks.\n- Attention needed from lenders and financial sector supervisors to address firms with debt-servicing difficulties."
    },
    {
      "heading": "Publication and metadata",
      "content": "- Author: Petia Topalova\n- Date: April 1, 2004\n- Series: Working Paper No. 2004/064\n- Issue: 064\n- Volume: 2004\n- Pages: 41\n- DOI: https://doi.org/10.5089/9781451848595.001\n- ISBN: 9781451848595\n- ISSN: 1018-5941\n- Subjects: Commercial banks; Corporate governance; Corporate sector; Economic sectors; Financial institutions; Financial markets; Nonperforming loans; Stock markets\n- Keywords: Asia and Pacific; board of directors; Commercial banks; companies increasing; company; company transaction; Corporate governance; Corporate sector; experience difficulty; government company; indebted company; Indian corporate sector; Indian financial sector; Interest coverage; long-term debt; Nongovernment company; Nonperforming loans; private company; public sector company; Stock markets; WP\n\nSource: Overview of the Indian Corporate Sector: 1989-2002, IMF Working Papers 2004/064.\n\n---\n\n Content in this bundle\n\n- wp0464\n  - wp0464 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp0464 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/overview-of-the-indian-corporate-sector-1989-2002-17299"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2016/12/30/overview-of-the-indian-corporate-sector-1989-2002-17299/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/30/overview-of-the-indian-corporate-sector-1989-2002-17299/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2016/12/30/overview-of-the-indian-corporate-sector-1989-2002-17299/bundle-manifest.json)",
    "Authors: Petia Topalova",
    "Published: April 1, 2004",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451848595.001",
    "Uses firm-level data to examine performance of India's nonfinancial corporate sector since 1989 and evaluate financial vulnerabilities.",
    "Promising trends in liquidity, profitability, and leverage emerged in the early 1990s.",
    "Trends experienced a reversal after 1996.",
    "Most indicators were still at comfortable levels despite the reversal.",
    "Evidence of improvement in 2002, the last year in the sample.",
    "A number of firms still face problems servicing their debt obligations, posing a risk to lenders.",
    "The aggregate interest coverage of the corporate sector indicates that potential nonperforming loans of the corporate sector remain high.",
    "Conclusion: underscores the need for close monitoring of the corporate sector in the future.",
    "Persistent debt-servicing problems for a subset of firms.",
    "High potential nonperforming loans as signaled by aggregate interest coverage.",
    "Reversal of earlier improvements after 1996, despite overall comfortable indicator levels.",
    "Close monitoring of the corporate sector going forward to track debt-servicing capacity and nonperforming loan risks.",
    "Attention needed from lenders and financial sector supervisors to address firms with debt-servicing difficulties.",
    "Author: Petia Topalova",
    "Date: April 1, 2004",
    "Series: Working Paper No. 2004/064",
    "Issue: 064",
    "Volume: 2004",
    "Pages: 41",
    "DOI: https://doi.org/10.5089/9781451848595.001",
    "ISBN: 9781451848595",
    "ISSN: 1018-5941",
    "Subjects: Commercial banks; Corporate governance; Corporate sector; Economic sectors; Financial institutions; Financial markets; Nonperforming loans; Stock markets",
    "Keywords: Asia and Pacific; board of directors; Commercial banks; companies increasing; company; company transaction; Corporate governance; Corporate sector; experience difficulty; government company; indebted company; Indian corporate sector; Indian financial sector; Interest coverage; long-term debt; Nongovernment company; Nonperforming loans; private company; public sector company; Stock markets; WP",
    "**_wp0464**"
  ],
  "related": [
    {
      "title": "_wp0464",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2004/_wp0464.pdf",
      "summary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2004/_wp0464.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2004/_wp0464.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2016/12/30/overview-of-the-indian-corporate-sector-1989-2002-17299/index.md",
    "json": "/en/publications/wp/issues/2016/12/30/overview-of-the-indian-corporate-sector-1989-2002-17299/index.json",
    "bundleManifest": "/en/publications/wp/issues/2016/12/30/overview-of-the-indian-corporate-sector-1989-2002-17299/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-17T07:10:19.569Z"
}