Finance Minister meets PSB chiefs

To review banks readiness in implementing stimulus package

by Nidhi Bhati

On 22 May 2020, Finance Minister Nirmala Sitharaman reviewed the preparedness of public sector banks (PSBs) for implementing the Rs.20.9 billion Aatmanirbhar Bharat economic stimulus. During the meeting, discussions centred around the micro, small and medium enterprise (MSME) measures, farmer-friendly agriculture reforms, ways to inject liquidity into the system besides the sectoral initiatives around housing, aviation and social sector benefits such as viability gap funding. Sitharaman also underscored the need for banks to do some heavy lifting for the successful implementation of the stimulus measures. On the Reserve Bank of India (RBI)’s decision to reduce the benchmark lending rate, the Finance Minister said that the move will make loans affordable amid the Covid-19 crisis.

References
1. https://economictimes.indiatimes.com/news/economy/policy/not-immune-to-problems-of-india-inc-finance-minister-to-industry/articleshow/75904302.cms
2. https://www.livemint.com/news/india/fm-reviews-readiness-of-psbs-to-implement-stimulus-package-11590170448292.html
3. https://www.thehindubusinessline.com/money-and-banking/atmanirbhar-package-fm-reviews-bankers-readiness/article31652731.ece
CMIE STATISTICS
Unemployment Rate (30-DAY MVG. AVG.)
Per cent
6.7 -2.4
Consumer Sentiments Index
Base September-December 2015
46.3 -0.4
Consumer Expectations Index
Base September-December 2015
48.7 -0.6
Current Economic Conditions Index
Base September-December 2015
42.5 0.0
Quarterly CapEx Aggregates
(Rs.trillion) Sep 19 Dec 19 Mar 20 Jun 20
New projects 3.25 5.55 3.91 0.68
Completed projects 0.85 1.66 1.73 0.24
Stalled projects 0.41 0.61 0.76 0.11
Revived projects 0.43 0.83 0.42 0.59
Implementation stalled projects 0.91 0.13 9.78 0.08
Updated on: 27 Sep 2020 3:28PM
Quarterly Financials of Listed Companies
(% change) Sep 19 Dec 19 Mar 20 Jun 20
All listed Companies
 Income -2.3 -1.7 -4.9 -28.1
 Expenses -3.1 -2.2 -1.8 -28.4
 Net profit -1.3 -10.8 -47.5 -41.1
 PAT margin (%) 5.3 5.1 2.4 5.3
 Count of Cos. 4,452 4,431 4,247 4,117
Non-financial Companies
 Income -6.3 -5.5 -8.9 -38.4
 Expenses -6.7 -6.4 -4.9 -38.4
 Net profit -13.8 -13.8 -48.5 -60.2
 PAT margin (%) 5.7 5.7 3.4 4.2
 Net fixed assets 10.4 12.9
 Current assets 4.9 3.0
 Current liabilities 5.0 4.8
 Borrowings 8.3 14.7
 Reserves & surplus 5.7 2.1
 Count of Cos. 3,328 3,307 3,201 3,102
Numbers are net of P&E
Updated on: 27 Sep 2020 3:28PM
Annual Financials of All Companies
(% change) FY18 FY19 FY20
All Companies
 Income 8.4 13.3 0.9
 Expenses 9.9 13.5 1.3
 Net profit -40.3 22.2 -14.4
 PAT margin (%) 2.0 2.4 5.1
 Assets 10.9 9.3 9.8
 Net worth 7.5 8.6 6.4
 RONW (%) 3.5 4.3 7.1
 Count of Cos. 27,645 26,682 3,100
Non-financial Companies
 Income 8.7 13.8 -2.7
 Expenses 8.8 14.0 -1.9
 Net profit -9.0 23.4 -21.4
 PAT margin (%) 2.7 3.2 5.7
 Net fixed assets 7.1 5.3 15.3
 Net worth 6.1 8.5 3.7
 RONW (%) 5.7 6.9 9.3
 Debt / Equity (times) 1.0 0.9 0.7
 Interest cover (times) 2.1 2.4 3.4
 Net working capital cycle (days) 77 70 52
 Count of Cos. 22,442 21,605 2,329
Numbers are net of P&E
Updated on: 27 Sep 2020 12:32PM