Ongoing depreciation of the rupee to add to India Inc's borrowing woes

The ongoing depreciation of the rupee is set to make borrowings in foreign currency expensive for corporate India and impact bottom lines. Analysts say corporate houses will have to absorb this rise in costs, given limited borrowing opportunities in the domestic market. “Public sector banks, the primary lenders to corporate houses, are not in a position to offer large incremental loans because of losses arising from mounting bad loans,” said Soumyajit Niyogi, associate director, India Ratings & Research. He said companies have no option but to look for external sources of fun.....

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