Investigation into Loan Default Problems in Infrastructure, Real Estate, and Constructions Sectors facing the New Generation Private Sector Banks in India

Author:

Das Rituparna1ORCID

Affiliation:

1. University of Petroleum and Energy Studies, Dehradun, India

Abstract

The rating agency Standard and Poor's recently warned that India could become the first of the BRIC economies to lose its investment-grade status because of the slowing down of growth prospect in the face of bad loans. Against the backdrop of the loan defaults in the real estate and infrastructure sectors leading to the slackening of economic growth, which caused downgradation of India's international credit rating, this chapter aims to inquire into the modus operandi of credit rating by banks and rating agencies, the impact of economic downturn on the behaviors of borrowers as well as lenders, mode of calculation of default probability, and the unaddressed needs of academic and professional research.

Publisher

IGI Global

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