RBI to maintain status quo on key policy rate: Experts

by Nidhi Bhati

The Reserve Bank of India (RBI) is likely to maintain status quo on policy rates at its first bi-monthly monetary policy review for the current fiscal, as per experts. They opine that a sudden surge in Covid-19 cases and the government’s recent mandate asking the central bank to keep retail inflation around four per cent may prompt the RBI to opt for an accommodative stance. The sharp new wave of Covid-19 cases has reignited uncertainty regarding the economic outlook in the immediate term. Icra’s Principal Economist Aditi Nayar expects the Monetary Policy Committee (MPC) to maintain the accommodative stance over at least the next two policy reviews, possibly until the vaccines become available in India for all adults. RBI Governor Shaktikanta Das headed six-member MPC is scheduled to meet from 5-7 April 2021. The policy meet outcome will be announced on 7 April 2021.

References
1. https://www.livemint.com/news/india/rbi-is-likely-to-keep-policy-rates-unchanged-experts-11617561389398.html
2. https://www.business-standard.com/article/economy-policy/mpc-to-maintain-accommodative-stance-at-least-in-the-next-two-reviews-121040500117_1.html
3. https://economictimes.indiatimes.com/news/economy/policy/reserve-bank-expected-to-hold-rates-this-week/articleshow/81904477.cms
CMIE STATISTICS
Unemployment Rate (30-DAY MVG. AVG.)
Per cent
7.5 +1.4
Consumer Sentiments Index
Base September-December 2015
57.1 0.0
Consumer Expectations Index
Base September-December 2015
58.6 0.0
Current Economic Conditions Index
Base September-December 2015
54.8 0.0
Quarterly CapEx Aggregates
(Rs.trillion) Jun 20 Sep 20 Dec 20 Mar 21
New projects 0.96 1.40 1.16 1.41
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: 21 Apr 2021 8:28PM
Quarterly Financials of Listed Companies
(% change) Jun 20 Sep 20 Dec 20 Mar 21
All listed Companies
 Income -27.7 -6.3 1.6 7.4
 Expenses -27.9 -10.3 0.2 4.6
 Net profit -40.5 47.2 57.6 18.7
 PAT margin (%) 5.2 8.3 8.4 20.6
 Count of Cos. 4,399 4,401 4,372 41
Non-financial Companies
 Income -37.4 -10.5 0.2 8.2
 Expenses -37.7 -14.2 -0.7 6.0
 Net profit -56.0 31.5 54.3 16.7
 PAT margin (%) 4.5 8.1 8.9 20.2
 Net fixed assets 5.9 1.1
 Current assets 0.7 1.9
 Current liabilities -2.7 4.9
 Borrowings 8.3 5.8
 Reserves & surplus 4.2 5.9
 Count of Cos. 3,265 3,266 3,252 29
Numbers are net of P&E
Updated on: 21 Apr 2021 8:28PM
Annual Financials of All Companies
(% change) FY19 FY20 FY21
All Companies
 Income 13.3 0.0 -6.6
 Expenses 13.6 0.0 -7.8
 Net profit 15.2 -9.5 1.7
 PAT margin (%) 2.1 2.2 10.4
 Assets 9.6 7.8 0.7
 Net worth 8.5 4.4 -0.1
 RONW (%) 3.8 3.6 11.7
 Count of Cos. 30,747 29,337 38
Non-financial Companies
 Income 13.9 -1.9 -7.0
 Expenses 14.1 -1.7 -8.3
 Net profit 21.6 -19.8 2.2
 PAT margin (%) 2.9 2.5 11.0
 Net fixed assets 5.5 8.9 -0.6
 Net worth 8.1 2.1 -0.2
 RONW (%) 6.4 5.1 13.3
 Debt / Equity (times) 1.0 1.0 0.1
 Interest cover (times) 2.3 2.0 23.1
 Net working capital cycle (days) 72 70 37
 Count of Cos. 24,611 23,388 30
Numbers are net of P&E
Updated on: 19 Apr 2021 9:56PM