StanChart's Khurana On India's Private Credit Markets Outlook

The video discusses India's significant credit growth driven by private sector investments and high US dollar rates, leading to increased domestic loan opportunities. It highlights the rise of the private credit market in India, influenced by regulatory support and alternative funding needs. The impact of US rate hikes on local borrowing and bond markets is examined, noting a shift towards local liquidity. The video also explores the growing importance of ESG funding, with a focus on renewable energy and social loans.

What factors are contributing to the significant credit growth in India?

• High U.S. dollar rates and private sector CapEx

• Decline in foreign investments

• Reduction in local borrowing

• Decrease in multinational corporate interest

What has led to the rise of the private credit market in India?

• Increased investor interest and challenges in equity capital markets

• Decrease in regulatory support

• Decline in the number of private equity firms

• Lack of alternative funding options

How have U.S. interest rates affected local borrowing in India?

• Increased reliance on local liquidity

• Higher foreign currency borrowing

• Decrease in local liquidity

• No impact on borrowing patterns

What is the current trend in ESG funding according to the transcript?

• ESG funding remains unchanged

• ESG funding has decreased significantly

• ESG funding has become a significant theme with increased proportions

• ESG funding is only focused on social loans

What is one of the innovations in ESG funding mentioned in the transcript?

• Sustainability linked loans

• Traditional bank loans

• Equity-based funding

• Cryptocurrency investments