PSBs may need more than budgeted capital infusion: SS Mundra

Provisioning for bad loans, hair cuts the cause

by Janhavi Behere

RBI deputy governor S S Mundra said that the PSBs may require more than the Rs.100 billion capital infusion budgeted by the government in FY18 on account of higher provisioning for bad loans and haircut on stressed assets. He also said that the balance-sheet cleaning exercise could lead to increase in provision. Earlier this week, the RBI has identified 12 stressed accounts each having more than Rs.50 billion crore of outstanding loans. The Internal Advisory Committee (IAC) will come out with the names of the identified accounts at an appropriate time, the deputy governor said. Regarding the insolvency process, he said that various solutions such as merger, restructuring, haircut or provisioning may be required based on the structure which would be adopted under the Insolvency and Bankruptcy Code.

References
1. http://www.financialexpress.com/industry/banking-finance/banks-may-need-additional-rs-10000-cr-infusion-for-bad-loans-ss-mundra/722019/
CMIE STATISTICS
Unemployment Rate
Per cent
3.5 +0.1
Consumer Sentiments Index
Base September-December 2015
96.5 -0.2
Consumer Expectations Index
Base September-December 2015
96.2 0.0
Current Economic Conditions Index
Base September-December 2015
96.8 -0.5
Quarterly CapeEx Aggregates
(Rs.trillion) Jun 16 Sep 16 Dec 16 Mar 17
New projects 1.46 2.37 1.42 2.92
Completed projects 0.91 2.21 0.91 1.77
Stalled projects 1.40 0.64 1.01 0.35
Revived projects 0.40 0.51 0.17 0.62
Implementation stalled projects 0.50 0.37 0.80 0.27
Updated on: 28 Jun 2017 8:20PM
Quarterly Financials of Listed Companies
(% change) Jun 16 Sep 16 Dec 16 Mar 17
All listed Companies
 Income -0.9 2.1 6.2 10.2
 Expenses -0.3 1.9 6.4 11.7
 Net profit -4.0 14.6 38.9 17.8
 PAT margin (%) 6.9 6.9 6.1 6.2
 Count of Cos. 4,519 4,489 4,485 4,305
Non-financial Companies
 Income -2.5 0.6 6.0 11.7
 Expenses -2.9 -0.2 7.4 15.4
 Net profit 9.7 26.7 23.4 -1.5
 PAT margin (%) 7.4 6.9 6.3 6.4
 Net fixed assets -9.2 7.7
 Current assets 8.1 2.4
 Current liabilities 11.6 9.4
 Borrowings 3.1 5.5
 Reserves & surplus 8.4 7.7
 Count of Cos. 3,515 3,491 3,491 3,359
Numbers are net of P&E
Updated on: 28 Jun 2017 8:30PM
Annual Financials of All Companies
(% change) FY13 FY14 FY15 FY16
All Companies
 Income 12.5 9.9 5.0 1.0
 Expenses 12.8 9.8 5.0 1.1
 Net profit 1.1 -2.1 2.0 -11.6
 PAT margin (%) 3.6 3.2 3.3 3.2
 Assets 14.3 12.2 9.3 8.1
 Net worth 9.6 9.5 8.6 7.4
 RONW (%) 6.8 6.2 6.2 5.6
 Count of Cos. 24,675 22,117 21,242 17,323
Non-financial Companies
 Income 11.8 9.6 4.1 0.0
 Expenses 12.2 9.2 4.2 -0.8
 Net profit -8.5 -2.4 -5.0 12.5
 PAT margin (%) 2.4 2.2 2.2 2.9
 Net fixed assets 12.9 11.6 13.0 12.4
 Net worth 7.8 8.6 7.3 6.7
 RONW (%) 5.5 5.1 4.9 5.9
 Debt / Equity (times) 1.1 1.1 1.1 1.0
 Interest cover (times) 2.1 1.9 1.9 2.1
 Net working capital cycle (days) 72 69 66 66
 Count of Cos. 19,170 17,554 16,934 14,134
Numbers are net of P&E
Updated on: 08 Jun 2017 2:48PM

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