RBI likely to push for resolution of bad loans worth around Rs.8 trillion by March 2019: Assocham

Efforts of govt & RBI, turnaround in economic cycle to help

by Janhavi Behere

The RBI is expected to push for resolution of bad loans worth around Rs.8 trillion by March 2019, as per a study by Assocham. The report titled ‘NPAs Resolution: Light at the end of tunnel by March 2019’ has stated that the NPAs mess would largely be resolved by the first quarter of FY20 due to the resolute steps by the government and the RBI along with a turnaround in the economic cycle. The report pointed out that a look at the balance sheet of banks indicates that they are not in position to do fresh corporate lending that is necessary for pushing subdued private sector investment. In FY17, 27 PSBs collectively made an operating profit of Rs.1.5 trillion, but after accounting for the provisions of bad loans net operating profit slipped to a paltry Rs.5.7 billion.

References
1. http://www.assocham.org/newsdetail.php?id=6383
CMIE STATISTICS
Unemployment Rate
Per cent
3.3 -0.0
Consumer Sentiments Index
Base September-December 2015
94.9 0.0
Consumer Expectations Index
Base September-December 2015
95.4 0.0
Current Economic Conditions Index
Base September-December 2015
94.1 0.0
Quarterly CapeEx Aggregates
(Rs.trillion) Sep 16 Dec 16 Mar 17 Jun 17
New projects 2.37 1.43 2.91 1.55
Completed projects 2.21 0.94 1.81 1.02
Stalled projects 0.65 1.01 0.35 2.45
Revived projects 0.91 0.17 0.62 0.29
Implementation stalled projects 0.37 0.81 0.33 0.63
Updated on: 27 Jul 2017 8:20PM
Quarterly Financials of Listed Companies
(% change) Sep 16 Dec 16 Mar 17 Jun 17
All listed Companies
 Income 2.1 6.2 10.3 9.2
 Expenses 1.9 6.4 11.8 9.6
 Net profit 14.6 40.4 17.7 4.5
 PAT margin (%) 6.9 6.1 6.2 12.5
 Count of Cos. 4,494 4,492 4,354 274
Non-financial Companies
 Income 0.6 6.0 11.8 8.8
 Expenses -0.2 7.3 15.5 9.4
 Net profit 26.7 24.7 -1.0 2.0
 PAT margin (%) 6.9 6.2 6.4 12.4
 Net fixed assets -9.2 7.6
 Current assets 8.1 2.5
 Current liabilities 11.6 9.3
 Borrowings 3.1 5.4
 Reserves & surplus 8.4 7.7
 Count of Cos. 3,491 3,493 3,398 202
Numbers are net of P&E
Updated on: 27 Jul 2017 8:30PM
Annual Financials of All Companies
(% change) FY13 FY14 FY15 FY16
All Companies
 Income 12.6 9.9 5.0 1.0
 Expenses 12.8 9.8 5.1 1.2
 Net profit 1.0 -2.3 1.4 -14.2
 PAT margin (%) 3.5 3.2 3.2 3.1
 Assets 14.3 12.3 9.4 8.7
 Net worth 9.6 9.6 8.8 7.6
 RONW (%) 6.8 6.2 6.1 5.4
 Count of Cos. 25,169 22,706 21,937 18,146
Non-financial Companies
 Income 11.9 9.6 4.1 0.0
 Expenses 12.2 9.3 4.3 -0.6
 Net profit -8.5 -2.7 -5.9 8.1
 PAT margin (%) 2.4 2.2 2.2 2.8
 Net fixed assets 12.9 11.6 13.2 12.6
 Net worth 7.8 8.6 7.4 6.9
 RONW (%) 5.5 5.1 4.9 5.6
 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 67 66
 Count of Cos. 19,615 18,084 17,557 14,859
Numbers are net of P&E
Updated on: 22 Jul 2017 1:04PM

Time-series available since 1992-93