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
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