The Cabinet Committee on Economic Affairs has approved the proposal of the Department of Industrial Policy & Promotion for amendment to the existing definition of "control" under the FDI policy. The revised definition will be as follows: Until now, the definition of "control", in the extant FDI policy is as under: "A company is considered as "controlled" by resident Indian citizens if the resident India
Category: Infrastructure Finance
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Interest subvention to continue to government banks
The Union Cabinet on August 2 approved continuation of the interest subvention scheme to provide short-term crop loans to farmers in order to ensure the availability of crop loans at affordable rates to farmers for loans upto Rs 3 lakh at the rate of 7 per cent per annum. This scheme has already been extended to crop loans borrowed from private sector scheduled commercial banks in respect of loans given within the service area of the branch concerned.
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Co-op urban banks may come under ombudsmans ambit
To bring in co-operative urban banks under the purview of Banking Omudsman, in view of their key role in banking activity in many states, a proposal has been mooted. The proposal had been mooted by an internal committee of RBI and a final decision would be taken after eliciting views of the State governments, A Madasamy, Banking Ombudsman for Kerala and Lakshadweep said in Thiruvananthapuram on August 1. Madasamy said though there was a strong opinion in favour of the proposal, State governments
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Proposed Post Bank of India may get Rs 1,300 cr
For the India Post, the Union government is likely to earmark Rs 1,300 crore to enable it to make a foray into the banking space. The Expenditure Finance Commission will meet this month and finalise the fund to be provided to India Post for the proposed Post Bank of India, a finance ministry official said. The Department of Post, which has applied to the Reserve Bank for a new bank licence, had last month approached the Finance Ministry for sanctions of Rs 1,300 crore for its banking foray and t
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Union Bank to raise Rs 3K cr to meet Basel-III norms
Mid-sized lender Union Bank of India plans to raise Rs 3,000 crore towards equity to meet Basel-III norms after 2015. Though it may not need any fresh equity until 2015, the bank has given a proposal to the Ministry of Finance for the additional capital and it is currently being studied, Union Bank Chairman and Managing Director D Sarkar said. The government roughly holds 58 per cent in the bank as on June 30, 2013.
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RBI tightens hedging rules for overseas investors
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
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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.
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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
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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
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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