The Reserve Bank of India today released the February 2017 issue of its monthly Bulletin. The Bulletin includes Speeches by the Top Management, two Articles and Current Statistics. The two Articles are: I. Composition and Ownership Pattern of Deposits with Scheduled Commercial Banks: March 2016; and II. Performance of Private Corporate Business Sector during First Half of 2016-17.

I. Composition and Ownership Pattern of Deposits with
Scheduled Commercial Banks: March 2016

The article presents the changes in composition of deposits with Scheduled Commercial Banks according to institutional ownership (viz., households, Government, non-financial private corporate, financial, and foreign sectors), type of deposits, population groups, bank groups and states/ union territories during 2015-16. The results for March 2016 are based on data collected in respect of 1,32,810 branches/ offices.

Highlights:

• Households continued to account for the largest share of total deposits increasing its share to 61.5 per cent in 2016; the highest in the preceding five years. This preponderance of households’ deposits was across all types of deposits as well as all population groups.

• Deposits of non-financial corporate sector increased by 17.4 per cent, thereby increasing its share in total deposits from 10.1 per cent in 2015 to 10.8 per cent in 2016.

• Term deposits dominated across all institutional sectors. Current and savings accounts deposits constituted around 42 per cent of households’ deposits.

• Share of savings deposits by households increased across all population groups in 2016.

• Public sector banks garnered around 90 per cent of Government deposits and more than three-fourth of households’ deposits.

The detailed data relating to this article were released on December 26, 2016 under Press Release.

II. Performance of Private Corporate Business Sector
during First half of 2016-17

The private corporate business sector showed improvement in sales growth and profit margins in the first half of 2016-2017. This was revealed by an analysis of the performance of these companies done by the Reserve Bank of India.

The article has been prepared on the basis of abridged financial results of first half of 2016-17 of 2,880 listed non-government non-financial (NGNF) companies. Besides giving an insight into the evolving trends in sales, expenditure, growth and profit margins, the article provides a brief analysis of performance based on major sectors and industry groups.

Highlights:

• While sales growth improved at the aggregate level and for the manufacturing sector, it contracted for the services (non-IT) sector in H1:2016-17. The IT sector slowed down in H1:2016-17 compared with the previous half year.

• The trend of successive contraction in expenditure since H2:2014-15, was reversed in H1:2016-17, in line with a general pause in falling global commodity prices.

• Operating Profit growth (Y-o-Y) decelerated significantly in H1:2016-17 compared with H2:2015-16. However, Operating profit growth and operating profit margin for the manufacturing sector improved. Net profit margins improved across all sectors.

• Risk profile improved for the ‘Iron & Steel’ industry, with a significant decrease in debt held by vulnerable companies of this industry in H1:2016-17 compared with H1:2015-16.

Ajit Prasad
Assistant Adviser

Press Release : 2016-2017/2160