OREANDA-NEWS. January 12, 2012. The Reserve Bank of India today released the January 2012 issue of its monthly RBI Bulletin. The Bulletin carries two articles - (i) International Banking Statistics for March and June 2011 (ii) Performance of the Private Corporate Business Sector during the First Half of 2011-12.

1. International Banking Statistics for March and June 2011

The article presents an analysis of international liabilities and assets of banks in India, classified under Locational Banking Statistics (LBS) and consolidated international/foreign claims under Consolidated Banking Statistics (CBS). These data are collected as per the reporting system of the Bank for International Settlements (BIS), for the quarters ended March and June 2011.

Main Findings

Locational Banking Statistics - International Liabilities

The international liabilities (in Indian `) of banks in India, at the end-June 2011 grew by 11.2 per cent over the position a year ago and by 1.4 per cent over the previous quarter.

The foreign currency borrowings, investment in equities of the banking sector by non-residents and NRO deposits contributed to the growth in international liabilities.

At end-June 2011, the annual increase in the international liabilities is reflected in the increase in the liabilities towards USA, UK and UAE.

The share of the international liabilities towards the non-bank sector was lower at 73.1 per cent compared with 74.5 per cent a year ago.

Locational Banking Statistics - International Assets

At end-June 2011, the international assets (in Indian `) of banks in India registered a growth of 12.6 per cent over the position a year ago and a decrease of 1.1 per cent over the previous quarter.

Foreign currency loans to residents, outstanding export bills, NOSTRO balances and loans to non-residents contributed to the increase in the international assets over the previous year.

The share of the non-bank sector in the international assets declined to 67.1 per cent as at end-June 2011 from 70.2 per cent a year ago.

At end-June 2011, for the international assets denominated in US Dollar a decline (from 75.5 per cent to 72.9 per cent) was observed in the share towards non-bank sector over the position a year ago.

Consolidated Banking Statistics

The annual growth in consolidated international claims (in Indian `) of banks based on country of immediate risk, as at end-June 2011, was 8.9 per cent while the international claims had declined by 1.6 per cent as at end-June 2010.

Major part of consolidated international claims of Indian banks on immediate risk basis, at end-June 2011, continued to be of short-term nature (less than one year) and accounted for 61.9 per cent of total claims compared to 61.1 per cent a year ago.

2. Performance of the Private Corporate Business Sector during the first half of 2011-12

The article analyses the abridged results relating to 2,643 non-government non-financial (NGNF) listed companies and provides, inter alia, a brief analysis by size and industry.

Main Findings:

Overall performance of 2,643 select NGNF companies showed some moderation during April-September 2011 wherein the sales grew by 20.8 per cent vis-a-vis 21.5 per cent during April-September 2010. However, growth in profits declined sharply as compared with the corresponding period of previous year largely on account of higher input costs and significant increase in interest payments.

Profitability in terms of operating, gross and net margins contracted by 200, 140 and 190 basis points, respectively in the first half of 2011-12 over the corresponding period of the previous year. Interest burden increased by 5.0 percentage points due to a faster increase in interest outgo in comparison with gross profits.

Bigger companies recorded higher sales growth and also relatively higher growth in operating profits, whereas smallest size classes witnessed a decline in sales and in operating profits.

Sales growth was higher for companies engaged in manufacturing activities as compared with those engaged in computer & related activities and services other than IT. However, companies in IT services recorded the highest growth of 19.6 per cent in net profits with considerable support from other income. Profitability of manufacturing and services sector was impacted on account of higher input prices and interest outflow.

Industry-wise analysis revealed that sales growth was quite healthy in most of the industries except in mining and quarrying, sugar, radio, television and communication equipments and real estate industries. However, profit performance (growth in PBDIT and PAT) of various industries was mixed.