PRESSRELEASE

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DEPARTMENTOFCOMMUNICATION,CentralOffice,S.B.S.Marg,Mumbai400001
/Phone:9122 22660502 /Fax:9122 22660358

RESERVEBANKOFINDIA

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email: helpdoc@rbi.org.in

February 10, 2015

RBI releases its Monthly Bulletin for February 2015
The Reserve Bank of India today released the February 2015 issue of its
monthly Bulletin. The Bulletin includes the Sixth Bi-Monthly Monetary Policy
Statement, 2014-15 and speeches by the Top Management as well as Current
Statistics. Also included are three articles: 1. Annual Census on Foreign Liabilities
and Assets of Indian Companies: 2013-14; 2. International Trade in Banking
Services: 2013-14; and 3. Performance of Private Corporate Business Sector during
First Half of 2014-15.
1. Annual Census on Foreign Liabilities and Assets of Indian Companies
2013-14
This article presents comprehensive information on overseas liabilities and
assets of Indian companies, arising on account of foreign direct investment (FDI) in
India, their overseas direct investment (ODI) and other investments. In the latest
round of the census, of the 17,211 companies that reported, 15,788 companies had
FDI /ODI in their balance sheet in March 2014.
Main Findings:

The total inward FDI stock stood at ` 15,089.6 billion whereas total ODI was
placed at ` 5,390.3 billion at market value in March 2014. FDI stock at market
value in the manufacturing and services sectors stood at ` 7,458.1 billion and `
5,987.2 billion, respectively in March 2014.

Other investment liabilities with unrelated non-resident entity, stood at ` 10,470

billion in March 2014. Corresponding overseas assets amounted to 40.4 per
cent of such liabilities.

Among the source countries for FDI, Mauritius had the largest share (24.3 per
cent) followed by UK (16.0 per cent) and USA (15.9 per cent). The destination
for ODI by Indian companies was largely shared by Singapore (23.5 per cent) in
March 2014.

Total sales of Indian subsidiary companies in foreign countries (including

exports of ` 919.6 billion) stood at ` 3,140 billion in 2013-14; their total purchase
(including imports of ` 1,049.5 billion) was placed at ` 2,353.3 billion.

Total sales of foreign subsidiaries in India (including exports of ` 4,900.1 billion)

stood at ` 15,260.6 billion in 2013-14 while their purchase (including imports of `
4,395.9 billion) was placed at ` 9,595.6 billion.

2. International Trade in Banking Services: 2013-14

This article provides information on international trade in banking services
(ITBS) for India pertaining to branches/subsidiaries of Indian banks operating abroad
and foreign banks operating in India. Consistent and comparable data are captured
for various financial services rendered by the banks based on explicit/implicit
fee/commission charged to customers. The survey covered 188 overseas branches,
260 overseas subsidiaries of Indian banks and 307 branches of foreign banks
operating in India.
Main Findings:

The cross-border presence of Indian banks has expanded steadily in the

recent years, with the associated increase in employee-strength of their
overseas branches and subsidiaries alongside. The number of branches of
foreign banks in India has shown some decline in 2013-14 after the consistent
increase in the preceding four years.
The business of Indian banks overseas branches remained robust and grew
by 36.5 per cent in 2013-14. The business of foreign banks operating in India
recovered in 2013-14 from the slowdown in 2012-13 and their consolidated
balance sheet increased by 20.6 per cent in 2013-14.
Total fee income generated by 188 branches of Indian banks operating
outside India moderated to ` 89.6 billion (US$ 1.5 billion) in 2013-14 from `
93.5 billion (US$1.7 billion) in 2012-13. In the case of foreign banks operating
in India, total fee income generated by 307 branches increased to `79.6 billion
(US$ 1.3 billion) in 2013-14 from `74.5 billion (US$ 1.4 billion) in 2012-13.
The United Kingdom, Hong Kong, UAE, Singapore, Bahrain and USA were the
major source countries of banking services provided by overseas branches of
Indian banks. Overseas subsidiaries of Indian banks were mainly present in
the United Kingdom and Canada.

3. Performance of the Private Corporate Business Sector during First Half of

2014-15
This article analyses the performance of the private (non-financial) corporate
business sector during the first half of 2014-15 (April-September) based on the
earnings results of 2,965 companies. It also sets out the evolving trend in sales,
expenditure and profit margins of the corporate sector over a longer horizon. Along
with the discussion on aggregate performance, the article also provides a brief
analysis by size and major industry groups.

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Main Findings:

The aggregated sales growth of the private (non-financial) corporate business

sector moderated during H1:2014-15. Large companies (annualised sales
more than ` 10 billion) witnessed a modest increase in sales growth after
undergoing moderation since 2012-13 while small companies continued to
contract.

The manufacturing sector showed a gradual improvement in sales during

H2:2013-14 and H1:2014-15. Sales growth of the non-IT services sector
declined successively and showed only a minor improvement in H1:2014-15.
IT sector reported a moderation in sales growth in H1:2014-15.

Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA or

operating profits) and Earnings before Interest and Tax (EBIT) have grown
considerably during the current half year as against a contraction in the
corresponding period in 2013-14.

EBITDA and net profit margins witnessed improvement in H1:2014-15 at the

aggregate level and also for medium and large sized companies.

The EBITDA margin remained close to the average of 11.4 per cent during the
seven consecutive half-year periods. Both EBITDA and net profit growth rates
for the non-IT services sector shot up in H1:2014-15, pulling up the sunken
margins above the average for the seven half-year periods.
The manufacturing sector in H1:2014-15 witnessed a rise in the non-operating
surplus, in particular for the pharmaceuticals industry.

Press Release : 2014-2015/1684

Sangeeta Das
Director