Today, the Reserve Bank of India released on its website (https://dbie.rbi.org.in/DBIE/dbie.rbi?site=statistics#!2_43) data relating to the performance of non-government non-banking financial and investment (NGNBF&I) companies (excluding insurance and banking companies) for 2017-18.

The analysis is based on audited annual accounts of select 16,278 NGNBF&I companies accounting for 86.6 per cent of the total paid-up capital (PUC) of all NGNBF&I companies as on March 31, 2018. Explanatory notes to the statements are given in the Annex.

Highlights

• Operating profit growth slumped to 2.6 per cent from 14.8 per cent a year ago on account of moderation in interest income and higher remunerations to employees (Statement 1).

• Retained earnings contracted due to overall reduction in profit margin and higher dividend payments (Statements 1 and 2).

• Within total borrowing by these companies, loan from banks accelerated in 2017-18 (Statement 1).

• Investments by these companies decelerated in a broad based manner barring the loan finance group (Statement 1).

• The combined balance sheet of these companies expanded by over 20 per cent for the second successive year mainly on account of long-term loans and advances by asset finance and loan finance companies; these activities were financed by both short-term and long-term borrowings (Statements 4A and 4B).

• There was greater reliance on short-term borrowings for funding activities, with their share in total borrowings increasing to 37.9 per cent during 2017-18 from 25.2 per cent in the previous year (Statements 5A and 5B).

• Mobilisation of long-term funds through bonds and debentures declined, whereas funding by way of term loans, especially from banks, picked up (Statements 5A and 5B).

Notes:

The primary source of data is the Ministry of Corporate Affairs (MCA).

Ajit Prasad
Director

Press Release : 2019-2020/525