The Reserve Bank of India today(10-Jul-2017) released the July 2017 issue of its monthly Bulletin. The Bulletin includes one speech by the Top Management, two articles and Current Statistics. The two articles are:
I. Finances of Foreign Direct Investment Companies, 2015-16.
II. International Banking Statistics of India: 2016.
I. Finances of Foreign Direct Investment Companies, 2015-16
This article presents the financial performance of non-government non-financial foreign direct investment (FDI) companies during the year 2015-16 along with a comparative picture over the three-year period of 2013-14 through 2015-16 on the basis of a common set of companies. Performance of these companies was also compared with non-FDI companies. FDI companies included in the study accounted for 40.4 per cent of the total paid-up capital of non-financial FDI companies reported in the Reserve Bank’s Census on foreign liabilities and assets of Indian direct investment companies.
- The operating profit margin was maintained on account of the fall in the cost of raw materials.
- Export intensity, measured as the ratio of exports to sales, of FDI companies weakened gradually over the three-year period with muted exports growth in 2015-16.
- FDI companies were net earners of foreign exchange in 2015-16, reversing the pattern observed in the two preceding years mainly due to substantial contraction in their imports.
The aggregate and granular data pertaining to the finances of these companies for 2015-16 are available on the Reserve Bank’s website at (https://dbie.rbi.org.in/DBIE/dbie.rbi?site=statistics#!2_46).
II. International Banking Statistics of India : 2016
This article presents an analysis of the Locational Banking Statistics (LBS) and Consolidated Banking Statistics (CBS) based on international assets and liabilities. The data are analysed by type of instrument/components, currency, country of residence and sector of counter-party/transacting unit, and nationality of banks functioning in India. The data on CBS give international/ foreign claims as per residual maturity and sector of borrower along with the exposures by country of immediate borrower and on the reallocation of claims (i.e., risk transfers) to the country of ultimate risk. The related data have been released earlier through RBI website on June 30, 2017.
- Among international liabilities of banks, the outflow of balances from FCNR(B) was compensated by increase in foreign currency borrowings and NRE balances.
- On the claims side, decline in NOSTRO balances was compensated by increase in loans to non-residents and FC loans to residents.