Slippages in banking sector might rise by Rs.5.5 tln in 2020-21

Most sectors to witness revenue contraction

by Natasha Nadkar

Total slippages in the banking system might rise up to Rs.5.5 trillion in 2020-21 with economic activity coming to a standstill due to Covid-19 crisis, according to India Ratings and Research. While slippages from the corporate sector might rise by Rs.3.4 trillion, for non-corporate segments, it might increase by Rs.2.1 trillion in 2020-21. The rating agency further stated that most sectors in the country are likely to experience varying degrees of revenue contraction during 2020-21 due to demand and supply disruptions. As per a stress analysis of 30,000 corporates, the total standard-but-stressed corporate pool might increase from 3.8 per cent of the total bank credit as of December 2019 to up to 6.6 per cent in 2020-21. Out of this, the agency estimates corporates exposures of up to 3.2 per cent of total bank credit are at a high risk of slippage.

References
1. https://www.financialexpress.com/economy/covid-19-slippages-in-banking-sector-may-rise-by-rs-5-5-lakh-crore-this-fiscal/1966830/
CMIE STATISTICS
Unemployment Rate
Per cent
24.0 -0.2
Consumer Sentiments Index
Base September-December 2015
40.6 0.0
Consumer Expectations Index
Base September-December 2015
42.0 0.0
Current Economic Conditions Index
Base September-December 2015
38.5 0.0
Quarterly CapEx Aggregates
(Rs.trillion) Jun 19 Sep 19 Dec 19 Mar 20
New projects 1.12 2.19 5.02 3.07
Completed projects 0.88 0.85 1.65 1.30
Stalled projects 0.13 0.41 0.60 0.59
Revived projects 0.29 0.54 0.83 0.42
Implementation stalled projects 0.98 0.85 0.15 5.75
Updated on: 28 May 2020 9:28AM
Quarterly Financials of Listed Companies
(% change) Jun 19 Sep 19 Dec 19 Mar 20
All listed Companies
 Income 4.7 -2.2 -1.7 0.3
 Expenses 2.7 -3.1 -2.2 1.7
 Net profit 17.4 -2.4 -10.2 -2.3
 PAT margin (%) 6.2 5.3 5.2 9.8
 Count of Cos. 4,466 4,425 4,375 290
Non-financial Companies
 Income 2.4 -6.4 -5.4 -3.8
 Expenses 1.7 -6.7 -6.3 -3.4
 Net profit -8.7 -14.5 -13.2 4.8
 PAT margin (%) 6.3 5.8 5.8 11.5
 Net fixed assets 10.4 23.4
 Current assets 4.9 10.2
 Current liabilities 4.9 10.0
 Borrowings 8.5 16.7
 Reserves & surplus 6.1 15.2
 Count of Cos. 3,347 3,323 3,279 231
Numbers are net of P&E
Updated on: 28 May 2020 9:28AM
Annual Financials of All Companies
(% change) FY17 FY18 FY19
All Companies
 Income 6.1 8.1 14.8
 Expenses 6.1 9.6 15.1
 Net profit 26.2 -40.0 21.8
 PAT margin (%) 3.3 2.0 3.2
 Assets 8.6 10.9 10.0
 Net worth 9.6 7.5 9.2
 RONW (%) 5.8 3.5 5.3
 Count of Cos. 28,088 25,721 16,984
Non-financial Companies
 Income 5.8 8.3 15.6
 Expenses 6.0 8.4 16.0
 Net profit 22.9 -8.8 20.4
 PAT margin (%) 2.9 2.8 4.1
 Net fixed assets 9.2 6.9 5.8
 Net worth 8.9 6.0 8.7
 RONW (%) 6.2 5.7 8.3
 Debt / Equity (times) 1.1 1.0 0.8
 Interest cover (times) 2.0 2.2 2.8
 Net working capital cycle (days) 85 76 56
 Count of Cos. 22,931 20,946 13,206
Numbers are net of P&E
Updated on: 20 May 2020 11:49AM