New Delhi: India’s corporate credit cycle is likely to remain stable in the near term, supported by strong corporate balance sheets, moderate debt levels and a capital expenditure cycle largely funded through companies’ own cash flows, according to a report by Kotak Institutional Equities.
The brokerage said these factors are expected to limit the risk of a significant deterioration in lenders’ asset quality.
The latest data under the Insolvency and Bankruptcy Code (IBC) also showed that fresh corporate stress remained broadly stable. A total of 177 Corporate Insolvency Resolution Processes (CIRPs) were admitted in the first quarter of FY27, compared with 668 cases during the whole of FY26.
Financial creditors initiated 116 of the 177…