RBI likely to absorb USD 22 bln of dollar inflows

To use t-bills, repo and long-end sales to drain excess liquidity

by Natasha Nadkar

With foreign investments in debt and equity markets surging to USD 31 billion in 2017, the RBI is likely to mop up to USD 22 billion of dollar from the market. Bond traders and other debt market participants are of the view that the central bank will drain the resultant increase in liquidity through staggered sale of bills, along with daily reverse repo operations and some long-end sales. Traders believe that the RBI will have to drain USD 15.7-20 billion after taking into account factors such as festival-related consumer spending that naturally reduce cash in the system.

References
1. http://economictimes.indiatimes.com/news/economy/policy/rbi-may-need-to-drain-up-to-22-billion-as-inflows-add-to-excess-liquidity/articleshow/59999314.cms
CMIE STATISTICS
Unemployment Rate
Per cent
3.6 +0.1
Consumer Sentiments Index
Base September-December 2015
95.8 0.0
Consumer Expectations Index
Base September-December 2015
96.8 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 1.46 2.93 1.64
Completed projects 2.23 0.94 1.83 1.10
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 0.64
Updated on: 18 Aug 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 10.1
 Expenses 1.9 6.4 11.9 10.1
 Net profit 14.6 40.3 17.9 -16.3
 PAT margin (%) 6.9 6.1 6.1 6.0
 Count of Cos. 4,495 4,496 4,399 2,750
Non-financial Companies
 Income 0.6 6.0 11.8 10.8
 Expenses -0.2 7.3 15.5 10.7
 Net profit 26.6 24.6 -1.1 -20.9
 PAT margin (%) 6.9 6.2 6.3 6.0
 Net fixed assets -9.2 7.6
 Current assets 8.1 2.2
 Current liabilities 11.6 8.6
 Borrowings 3.1 4.9
 Reserves & surplus 8.4 6.5
 Count of Cos. 3,481 3,486 3,420 2,015
Numbers are net of P&E
Updated on: 18 Aug 2017 8:30PM
Annual Financials of All Companies
(% change) FY13 FY14 FY15 FY16
All Companies
 Income 12.6 10.0 4.9 1.0
 Expenses 12.8 9.8 5.0 1.2
 Net profit 0.9 -2.3 1.3 -15.2
 PAT margin (%) 3.5 3.2 3.2 3.0
 Assets 14.3 12.3 9.3 8.8
 Net worth 9.6 9.6 8.8 7.6
 RONW (%) 6.8 6.2 6.1 5.3
 Count of Cos. 25,384 22,944 22,236 18,452
Non-financial Companies
 Income 11.9 9.7 4.1 0.0
 Expenses 12.2 9.3 4.2 -0.6
 Net profit -8.6 -2.6 -6.1 6.3
 PAT margin (%) 2.4 2.2 2.2 2.7
 Net fixed assets 12.9 11.6 13.0 13.9
 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 2.0 1.9 2.0
 Net working capital cycle (days) 72 69 67 67
 Count of Cos. 19,804 18,286 17,814 15,125
Numbers are net of P&E
Updated on: 04 Aug 2017 3:37PM

Time-series available since 1992-93