The Reserve Bank of India on August 1 tightened hedging rules for foreign institutional investors in the currency market, requiring investors who have issued so-called participatory note contracts, or P-notes, to gain approval from the note-holder before hedging. The order was the latest in a series of measures intended to shore up a battered rupee and helped push the currency higher to 60.48 per dollar. The rupee, which has been the worst performing currency in emerging Asia so far in 2013, is
Category: Infrastructure Finance
Post
Post
Govt to finalise Rs 14,000 cr infusion for its banks
To meet global capital requirement norms (or Basel III norms) of public sector banks in the country, the Union Finance Ministry is likely to finalise Rs 14,000-crore capital infusion into the banks by the end of this month. An official concerned said that the government has received capital requirement proposals from all public sector banks and it is evaluating their proposals at the moment. Hopefully, capital allocation to banks would be finalised by August-end.
Post
Reliance Capital to strengthen footprint in financial services sector
In his annual letter to shareholders as Chairman of Reliance Capital, Anil Ambani said the company prepared a plan to strengthen its footprint in the financial services industry. Reliance Capital, which is the financial services arm of Reliance Anil Dhirubhai Ambani Group (ADAG), intends to more than double its customer base in the next 3-5 year
Post
Promoters, investors prefer debt instruments
Media reports indicate that promoters of Indian companies are increasingly preferring to raise funds through debt and investors are also willing to offer it through structured deals or their NBFC arms that could either be a part of their investment group or backed by them. Compared to equity funding, these investors prefer to deploy in debt instruments, reports indicate
Post
State-run banks recover bad loans
Several state-run banks have announced improvement in the recovery of bad loans as they took steps like setting up specialised asset management recovery branches (ARMBs) for this purpose. For example, Corporation Bank could reduce non performing asset (NPA) through cash recovery and upgradation to the extent of Rs 1,509.30 crore in the fisca
Post
Banks request regulatory forbearance from RBI
Reserve Bank of India (RBI) received request from some banks to give concessions on the prudential guidelines owing to unfavourable liquidity condition in the banking system. One of the concessions sought by banks is the waiver of the additional 75 basis points provisioning on restr
Post
Cabinet clears proposal to widen scope of “control” in FDI policy
The union cabinet approved the alignment of the definition of "control" under the foreign direct investment (FDI) policy with the definitions under the guidelines of Securities and Exchange Board of India and Companies Bill 2012. Accordingly, under the FDI policy, 'control' would be defined as "the right to appoint a majority of the directors or to control the management or policy dec
Post
Kotak Mahindra to open 100 new banks
In the current fiscal year, Kotak Mahindra Bank is planning to open 100 new branches across India. The bank has all India network of 450 branches and 969 ATMs. With the opening of 100 more branches the bank will cross 550 mark before March, 31 2014, said Kotak Mahindra Bank Executive vice-president Virat Diwanji.
Post
RBI says liquidity curbs to stay till rupee stabilises
Liquidity tightening measures initiated by Reserve Bank of India (RBI) would remain in force till stability is achieved in the foreign exchange market, the RBI said on August 1. It did not give any timeframe for rollback of the measures. RBI is as anxious as everyone to roll back the cash tightening steps sooner than later. However, the measures taken will be in place until volatility in the foreign exchange market is controlled, RBI Governor Duvvuri Subbarao said. He added that he does not want
Post
Govt relaxes policy on FDI in multi-branded retail trade
The Union government on August 1 approved the amendment or relaxation of the foreign direct investment (FDI) policy on multi-brand retail trading (MBRT), by easing main contentious riders on such money. These three riders, added as conditions to last yearÂ’s decision to open FDI in this segment, were on a mandatory 30 per cent sourcing from small domestic industries, 50 per cent of the investment to be in back-end infrastructure and outlets to be opened only in cities with population of more than