Media reports say that Indian banks borrowed Rs 50 million ($850,340) through the RBI's marginal standing facility (MSF) on July 25, the RBI data showed on July 26. The RBI raised the MSF rate by 200 basis points to 10.25 per cent on July 15, 300 basis points higher than the policy repo rate of 7.25 per cent.
Category: Infrastructure Finance
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Priority sector status sought for credit to affordable home developers
Banks have requested Reserve Bank of India (RBI) to allow them to classify loans given to developers of affordable housing projects as priority sector lending. If RBI assigns priority sector tag to such loans, it would encourage developers to build affordable homes owing to availability of funding from banks. Also, it would enab
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RBI wants traders to export 20% of imported gold
In order to reduce the domestic consumption of gold, the Reserve Bank of India (RBI) mandated importers of the yellow metal to export 20 percent of the gold from the arrived consignment. Presently, a very small portion of gold is exported and the above move is expected to boost re-export of gold.
Of the 970 tonnes of gold imported last year, only 70 tonn
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Basel-III norms may require Rs 2.3 trillion additional capital for SBI
In order to meet the additional capital requirement under the Basel-III norms, State Bank of India (SBI) would need about Rs 230,000 crore up to 2018. This includes Rs 150,000 crore of tier-I capital and Rs 80,000 crore of tier-II capital, agency reports indicate.
It is learnt that SBI may raise some of the required capital through internal accruals and some part from the mark
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RBI steps may not rein in rupee weakness: economists
Some analysts feel that the recent moves by Reserve Bank of India (RBI) to arrest rupee depreciation may not be effective. It may be recalled that the central bank further tightened rupee liquidity by restricting the borrowing of banks under the daily liquidity adjustment facility (LAF)
to 0.
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Kalyani Forge mulls Rs 2 bn investment to upgrade unit
In the coming five years, Pune-based Kalyani Forge
would deploy around Rs 200 crore on upgrading its current facility and key areas of operations. The Pune-based maker of precision forgings would use part of the investment for low-cost automation to increase productivity. It is learnt that the firm has a lot of u
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EPL to raise Rs 5 bn via bonds
Ennore Port (EPL) plans to raise only Rs 500 crore through tax-free bonds instead of the earlier plan of mopping up Rs 1,000 crore. This information was given by MA Bhaskarachar, Chairman and Managing Director of the country's first corporate port set up by the Government of India. The port originally planned to raise Rs 1,000 crore through tax-
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Centre allots Rs 1,300 cr to Post Bank of India
For the proposed Post Bank of India, the Union government has decided to sanction Rs 1,300 crore to meet its capital requirements. Although Post Bank does not intend to open a bank branch in each post office, the plan is to use postmen to meet the financial inclusion goal. According to the plan, Post Bank will have 50 branches in the first year, which will be increased to 150 by the fifth year. The branches will be located in select Head Post Offices in Tier-1-4 centres and select Sub-Post Offic
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Everstone to invest $34 mn in Hinduja Leyland Finance
Everstone Group, a private equity firm focused on India and Southeast Asia, has agreed to invest Rs 200 crore ($33.54 million) for a significant minority stake in commercial vehicle financing firm Hinduja Leyland Finance, the companies said on July 22. The Chennai-based non-banking finance company is owned by the Hinduja Group, which runs India's second-biggest bus and truck maker Ashok Leyland.
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3,000 private finance firms come under RBI scanner
About 3,000 private finance companies carrying out non-banking finance operations without requisite registration have come under the scrutiny of the Reserve Bank of India (RBI). RBI has started the scrutiny of the firms in the wake of concerns about their actual business activities. RBI's move comes against the backdrop of the government efforts to crackdown on entities, that are illegally raising large amounts of money from the public.