Rising NPAs and Debt - Early Indicators of IL&FS' Liquidity Crisis - Chart Of The Day 4 October 2018 - Equitymaster
X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Rising NPAs and Debt - Early Indicators of IL&FS' Liquidity Crisis
Oct 4, 2018


Now, no doubt, rating agency ICRA kept upholding IL&FS' AAA rating until August 2018. But the rating documents over the years, that lay down financial numbers, clearly showed a risky trend.

Even as IL&FS Financial Services' debt to equity ratio shot up over the past six years, the ratio of NPA to networth kept ballooning. And as I have written earlier for PSU banks, the NPA to networth ratio is something I stay extremely wary of.

For IL&FS Financial Services, the NPA to networth ratio rang alarm bells by 2016 itself.

Data Source: IFIN Rating Documents

This Chart Of The Day was published in The 5 Minute WrapUp - How I Discovered IL&FS Wasn't a AAA Company

Equitymaster requests your view! Post a comment on "Rising NPAs and Debt - Early Indicators of IL&FS' Liquidity Crisis". Click here!

  

Our Most Popular Charts

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS