Centre mulls Rs.5 bln credit enhancement fund

May be launched in July 2018

by Nidhi Bhati

The government is planning to launch a dedicated fund in July 2018 to provide credit enhancement for infrastructure projects. The fund will help in upgrading credit ratings of bonds issued by infrastructure companies and facilitate investment from investors like pension and insurance funds, according to finance joint secretary (infrastructure, policy and finance) Kumar Vinay Pratap. The initial corpus of the fund, to be sponsored by India Infrastructure Finance Company, will be Rs.5 billion and it will operate as a non-banking finance company (NBFC), he added. The fund was first announced in the Union Budget 2016-17. Pratap further added that while IIFCL will hold a 22.5 per cent stake in the NBFC, the Asian Infrastructure Investment Bank (AIIB) may pick up a 10 per cent stake. Additionally, State Bank of India, Bank of Baroda and Life Insurance Company will also have stakes in the firm.

References
1. https://www.thehindubusinessline.com/economy/govt-to-launch-500-crore-credit-enhancement-fund/article24138379.ece
CMIE STATISTICS
Unemployment Rate
Per cent
6.2 -0.0
Consumer Sentiments Index
Base September-December 2015
102.0 +0.6
Consumer Expectations Index
Base September-December 2015
101.2 +0.5
Current Economic Conditions Index
Base September-December 2015
100.0 +0.5
Quarterly CapeEx Aggregates
(Rs.trillion) Sep 17 Dec 17 Mar 18 Jun 18
New projects 1.31 1.51 3.41 2.32
Completed projects 1.26 1.16 1.57 0.91
Stalled projects 0.69 0.88 3.44 0.30
Revived projects 0.34 0.24 0.26 0.22
Implementation stalled projects 0.78 0.71 1.92 0.04
Updated on: 19 Aug 2018 8:20PM
Quarterly Financials of Listed Companies
(% change) Sep 17 Dec 17 Mar 18 Jun 18
All listed Companies
 Income 7.9 12.0 9.7 16.3
 Expenses 9.0 13.0 16.2 19.4
 Net profit -18.0 -14.3 -80.1 3.7
 PAT margin (%) 5.5 4.8 1.2 5.5
 Count of Cos. 4,508 4,503 4,360 4,026
Non-financial Companies
 Income 8.2 13.3 11.1 18.5
 Expenses 8.2 12.4 11.7 20.3
 Net profit -6.0 13.2 1.8 33.5
 PAT margin (%) 6.2 6.4 6.6 7.2
 Net fixed assets 9.2 11.8
 Current assets 2.9 7.2
 Current liabilities 11.0 10.4
 Borrowings 3.4 1.9
 Reserves & surplus 7.9 7.2
 Count of Cos. 3,464 3,471 3,372 3,173
Numbers are net of P&E
Updated on: 19 Aug 2018 8:20PM
Annual Financials of All Companies
(% change) FY15 FY16 FY17 FY18
All Companies
 Income 5.6 1.9 6.0 10.3
 Expenses 5.7 2.0 6.0 12.3
 Net profit 0.0 -9.7 25.0 -29.9
 PAT margin (%) 3.0 2.8 3.4 4.4
 Assets 9.5 10.2 7.6 13.2
 Net worth 8.5 11.3 7.9 12.8
 RONW (%) 5.8 4.9 5.8 6.8
 Count of Cos. 26,186 24,491 22,087 922
Non-financial Companies
 Income 4.9 1.1 5.8 9.7
 Expenses 5.1 0.5 6.1 8.6
 Net profit -9.4 19.9 19.8 6.0
 PAT margin (%) 2.0 2.4 2.9 7.7
 Net fixed assets 13.3 22.1 7.3 23.5
 Net worth 7.0 12.0 7.0 10.5
 RONW (%) 4.6 5.1 5.9 13.8
 Debt / Equity (times) 1.1 1.1 1.0 0.4
 Interest cover (times) 1.9 1.9 2.1 6.5
 Net working capital cycle (days) 66 65 62 28
 Count of Cos. 21,360 20,505 18,408 712
Numbers are net of P&E
Updated on: 19 Aug 2018 12:26PM