Roopa Kudva, managing director and chief executive officer, Crisil said that the current global financial turmoil will trigger more downgrades than upgrades in the domestic corporate sector. ?There was a time, when there were more upgrades than downgrades. However, the trend has now reversed. Going forward, we are expecting more downgrades to happen in the Indian corporate sector. The small companies will get affected quickly,? she said. Kudva was speaking on the sidelines of the ?Global Banking: Paradigm Shift? organised by Federation of Indian Chambers of Commerce and Industry (Ficci) and Indian Banks? Association, in Mumbai.
She added that they also expect the real estate to be under pressure. ?The real estate sector will be more stressed. There have been mismatches in the sector, facing a lot of challenges in such turbulent times,? said Kudva. Kudva also said that there will be an increase in delinquencies and credit quality will get impacted. She noted that there will be a rapid rise in NPAs and cost of funds are set to increase. Talking about the growth momentum, she remarked that India?s growth will remain under pressure, however the long term story remains intact. She also noted that domestic and global demand will show a slowdown, which would have its impact on the rupee. ?We are monitoring the rupee movement closely. Sectors like technology and steel are already showing a slowdown. The next six months will be critical,? she said.
