RBI likely to deliver dovish pause: Experts

by Nidhi Bhati

Economists at Bank of America (BofA) Securities believe that the Reserve Bank of India (RBI) will deliver another dovish pause on 7 April 2021. The pause will remain through 2021-22 and the apex bank may increase rate by one percentage point in 2022-23. According to Brickworks Ratings, the RBI will go for a status quo in rates. Given the rise in the spread of coronavirus and the imposition of fresh restrictions to contain the virus spread in the major parts of the country, the RBI is likely to continue with its accommodative monetary policy stance in the upcoming Monetary Policy Committee (MPC) meeting. Sharing similar views, Care Ratings stated that the factors to watch out for in the policy will be steps to push economic growth, contain inflation and how the RBI proposes to manage the large borrowing programme of the government.

References
1. https://economictimes.indiatimes.com/news/economy/policy/rbi-to-go-for-dovish-pause-on-wednesday-analysts/articleshow/81915636.cms
CMIE STATISTICS
Unemployment Rate (30-DAY MVG. AVG.)
Per cent
7.4 +0.3
Consumer Sentiments Index
Base September-December 2015
57.5 0.0
Consumer Expectations Index
Base September-December 2015
58.9 0.0
Current Economic Conditions Index
Base September-December 2015
55.2 0.0
Quarterly CapEx Aggregates
(Rs.trillion) Jun 20 Sep 20 Dec 20 Mar 21
New projects 0.96 1.40 1.16 1.40
Completed projects 0.26 0.73 0.83 0.62
Stalled projects 0.11 0.08 0.31 0.14
Revived projects 0.68 0.29 0.11 0.13
Implementation stalled projects 0.09 0.07 0.15 0.30
Updated on: 18 Apr 2021 8:28PM
Quarterly Financials of Listed Companies
(% change) Jun 20 Sep 20 Dec 20 Mar 21
All listed Companies
 Income -27.6 -6.3 1.6 6.2
 Expenses -27.9 -10.3 0.1 4.5
 Net profit -40.3 47.2 57.9 12.4
 PAT margin (%) 5.3 8.3 8.5 21.1
 Count of Cos. 4,400 4,400 4,371 22
Non-financial Companies
 Income -37.4 -10.5 0.2 6.1
 Expenses -37.7 -14.2 -0.7 5.2
 Net profit -56.0 31.5 54.6 9.1
 PAT margin (%) 4.5 8.1 8.9 20.7
 Net fixed assets 5.9 2.5
 Current assets 0.7 0.5
 Current liabilities -2.7 5.1
 Borrowings 8.3 6.4
 Reserves & surplus 4.2 5.7
 Count of Cos. 3,265 3,265 3,251 17
Numbers are net of P&E
Updated on: 18 Apr 2021 8:28PM
Annual Financials of All Companies
(% change) FY19 FY20 FY21
All Companies
 Income 13.3 -0.1 -8.7
 Expenses 13.6 -0.1 -9.8
 Net profit 15.4 -10.8 0.2
 PAT margin (%) 2.1 2.1 9.5
 Assets 9.6 7.7 0.3
 Net worth 8.5 4.3 -0.5
 RONW (%) 3.8 3.6 9.3
 Count of Cos. 30,693 29,280 30
Non-financial Companies
 Income 13.9 -2.0 -9.4
 Expenses 14.1 -1.7 -10.7
 Net profit 21.7 -20.9 0.7
 PAT margin (%) 2.9 2.4 10.2
 Net fixed assets 5.5 8.8 0.0
 Net worth 8.1 2.0 -0.7
 RONW (%) 6.4 5.0 10.6
 Debt / Equity (times) 1.0 1.0 0.1
 Interest cover (times) 2.3 2.0 18.8
 Net working capital cycle (days) 71 70 47
 Count of Cos. 24,568 23,344 23
Numbers are net of P&E
Updated on: 11 Apr 2021 5:03PM