News Digest: Indian private credit market estimated to near $100bn in five years

January 20, 2022

News Digest:

“Performing private credit” in India, which can potentially generate an annualized internal rate of return (IRR) of 12% to 18%, offers an investment opportunity worth between $39bn and $89bn over the next five years, a EY report has estimated.

As far as “stressed assets” promising annual yields to the tune of 18% to 24% are concerned, investment opportunities on that front in the country could be worth almost $25bn by 2025, the report adds.



India represents a significant structural opportunity for so-called “shadow banks” comprising non-bank lenders and credit funds, as a persisting non-performing loan crisis in the domestic banking system, combined with squeezed liquidity for many NBFCs, continues to dampen banks’ enthusiasm for disbursing credit at a rapid pace.



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