Infrastructure finance companies can raise funds upto 75 per cent of their net worth through external commercial borrowing (ECB) without seeking clearance from the Reserve Bank of India (RBI). This is because the central bank liberalised the norm in or
Category: Infrastructure Finance
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Rangarajan favours non corporates for bank licenses
Agency reports suggest that C Rangarajan, Chairman of Prime Minister's Economic Advisory Council wants the Reserve Bank of India (RBI) to give first priority to non-corporate applicants for banking licenses. Rangarajan has reportedly said that the central bank must look at various types of financial institutions that
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2012 sees fall in private equity investments
Data from Venture Intelligence shows that private equity (PE) players invested $8.9 billion over 406 deals in India during 2012 compared with $10.4 billion across 483 deals the previous year, which is a fall of 14.7 per cent. The decline in investment is attributed to delays in fund deployment by the PE firms. According to some indu
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Corporate bond market
In order to develop a vibrant corporate bond market, the Union Finance Ministry is planning some steps in collaboration with Reserve Bank of India (RBI) and the Ministry of Corporate Affairs (MCA).
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Stiglitz cautions against bank license to corporates
At a time when Reserve Bank of India (RBI) is planning to give banking licenses for new players, some experts caution against allowing corporates to set up banking business. Highliting the risk of conflict of interests, Nobel laureate Joseph Stiglitz said corporates should not be allowed to enter banking
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HUDCO to raise Rs 50 bn via bonds
In order to provide long-term funds for housing and urban infrastructure projects, Housing and Urban Development Corporation (HUDCO) decided to raise a maximum of Rs 5,000 crore through issue of tax-free bonds. The bonds, which are expected to hit the market in a few days, would be listed on the NSE. SBI Capital Mark
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Restructured loan ratio rises in banking system
Data from Reserve Bank of India (RBI) suggests that the ratio of restructured to gross advances is at a five-year post-Lehman high of 5 per cent for the banking system as a whole. It may be recalled that in 2008-09, RBI allowed the “one-time” dispensation to restructure sub-standard asse
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RBI revises norms for lending to small units
In view of the increase in price index and cost inputs, Reserve Bank of India revised sub-targets for lending to the micro and small enterprises sector. According to the new norms, banks must divert 40 per cent of total advances to the sector to micro (ma
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Banking system must promote economic growth
Experts urge that Reserve Bank of India (RBI) must give banking license to new banks with the objective of facilitating economic growth and driving financial inclusion. They feel that having very few large banks should not be the intention of policy makers while giving licen
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Board of Punjab & Sind Bank clears Rs 10 bn capital plan
The board of directors of Punjab & Sind Bank passed an enabling resolution for the bank to raise up to Rs 1,000 crore capital through preferential allotment route. According to media reports, the bank may issue the preferential equity shares to the government during the current quarter. PK Anand, Executive Director of the bank said the capit