The Reserve Bank of India (RBI) released a discussion paper on the proposed structure of banking system in India. The paper calls for abandoning the present two-tier banking structure in favour of a four-tier banking structure, which would usher in more competition, and resilience in the
Category: Infrastructure Finance
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Nabard sanctions Rs 176 cr to Gujarat for agri-infra
Under its Rural Infrastructure Development Fund-XIX (RIDF-XIX) the National Bank for Agriculture and Rural Development (Nabard) has sanctioned Rs 175.74 crore to Gujarat. The funds would be used for construction of lift irrigation facility consisting of a 32.90-km pipeline for transmission of 200 cusecs of water in Mehsana district.
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SAIL plans to sell 1 mn t steel through dealerships
Through its dealers, state-run Steel Authority of India (SAIL) plans to sell 1 mn t of steel, SS Mohanty, Director (technical) of the firm said. He said this while addressing the Annual Dealer's Award ceremony. The event was conducted to award the company's outstanding dealers in the Eastern Region
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IFC mulls tie-ups with new bank licence aspirants in India
The private sector investment arm of World Bank, International Finance Corp is looking out to partner with aspirants for new bank licences, as it increases its investment in India to $2 billion this year. IFC is an investor in Kolkata-based microfinance institution Bandhan Financial Services, as well as in non-banking finance company Magma Fincorp, both of which have applied for a banking licence.
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RBI lends Rs 695.85 bn to banks via MSF
Under the Reserve Bank of India's (RBI) marginal standing facility (MSF) window, Indian banks borrowed Rs 695.85 billion ($10.35 billion) on Aug. 28, higher than the Rs 564.35 billion on Aug. 27.
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Concessional rate World bank loans to India till 2021
The Indian government is working out a transitional arrangement with the the World Bank to avail loans lower than the market. Now the World Bank would not lend India soft loans to India as the country has graduated into a middle-income country. But it lends loans, till 2021, at higher than its prevailing concessional rates but lower than the market rates.
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Overhaul of Indian banking sector mooted to up growth
To increase growth in banking sector, competition among banks and for peoples' financial inclusion in the country, the Reserve Bank of India (RBI) has proposed a comprehensive overhaul of the countryÂ’s banking structure. Presently, only a universal banking structure is allowed, in the sense there is no separate licencing for niche activities as in developed nations.
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RCap expects to reduce debt if given bank license
The debt-to-equity ratio of Reliance Capital would decline to 0.5 from 1.7 if the company manages to get banking license from Reserve Bank of India (RBI). It may be recalled that the central bank invited application for new bank licenses from corporates, non banking finance companies and other entities earlier. Follo
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SBH chief rules out merger with SBI at present
M Bhagavantha Rao, Managing Director of State Bank of Hyderabad (SBH) ruled out the possibility of merger of the bank with State Bank of India (SBI) at the moment considering the bifurcation of Andhra Pradesh. It may be recalled that a separate state of Telangana has been carved out from Andhra Pradesh recently and the ensuing political situation is not cond
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Banks may lend Rs 60 bn more to Essar Steel
In order to prevent Essar Steel from approaching
the corporate debt restructuring (CDR) cell, lenders to the company provided an further loan of Rs 6,000 crore. The company borrowed this amount at an interest rate of 12.50 percent. The Ruia-group firm would use around Rs 2,000-2,500 crore of the Rs 6,000 crore to repay group com