In its recent report, Bank of America Merrill Lynch (BofA-ML) opined that the Reserve Bank of India (RBI) may not reduce policy repo rate until the volatility in the currency market subsides. According to the brokerage, the central bank may prefer to reduce Cash Reserve Ratio (CRR) by 25 basis points on July 30 instead of cutting policy rates if the Indian currency remains
Category: Infrastructure Finance
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DIPP discusses raising FDI limit in key sectors with ministries
Recently, the the Department of Industrial Policy & Promotion (DIPP) held meeting with around 15 ministries to understand their views on raising foreign direct investment (FDI) limit on some key sectors. These sectors include civil aviation, defence, telecom and multi-brand retail. Ministries of defence, I&B, civil aviation and petroleum & natural gas have reportedly attended the meeting
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Japanese investors prefer investment in India
According to a survey of 1,000 companies by Japan Bank of International Cooperation, India is seen as the second-most favoured destination for investment, after China. Japanese investors consider India as the most promising country for long-term investment, reports indicate. Of all Japanese investment in India, Tamil Nadu accounts for 40 per cent, data from the Japan Chamber of C
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DAMEPL asked to bear debt till pact is terminated
Sudhir Krishna, Secretary of the union urban development ministry informed that the Delhi Airport Metro Express (DAMEPL) will have to bear the debt till the concession agreement is terminated. DAMPEL is the joint venture between Reliance Infrastructure and Construccionesy Auxiliar de Ferrocarriles, SA (CAF) and it operates the metro rail corridor connecting Delhi airport. The joint venture firm recently submitted termination notice to Delhi Metro Rail Corp
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Govt to develop key infrastructure in Jaipur
Rajasthan government would focus on upgrading key infrastructure like drainage lines, roads and drinking water across Jaipur as the city has become a counter-magnet area. This would be part of the state government's proposals related to the infrastructure development in the city. The government is preparing the proposal and would submit the same to National Capital Region Plann
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RBI sells bonds worth Rs 140 bn in recent auction
Reserve Bank of India (RBI) sold Rs 140 billion worth bonds of various tenure on behalf of government. The central bank sold 2020 bond, 2025 bond, 2032 bond and 2035 bond through a recent auction. The central bank set a cut-off price of Rs 104.22, yielding 7.6598 percent for the 8.20 percent 2025 bond. For the 8.12 per cent, 2020 bond, the RBI set a cut-off price
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SIDBI to issue bonds, other instruments worth Rs 135 bn
In 2013-14, Small Industries Development Bank of India (SIDBI) plans to issue bonds and other instruments with a cumulative worth of Rs 13,500 crore to expand its business operation, agency reports indicate. The development bank would issue various instruments including bonds, Certificate of Deposits (CDs) and fixed deposits to raise the
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RBI panel calls for separation of business segments
A draft report of a Reserve Bank of India (RBI) panel suggested banks to separate the business segments of wealth management and and investment advisory services by creating a subsidiary. Further, the report, released recently, suggested that RBI must approve the creation of subsidiaries for this purpose. Such subsidiaries must be registered with the Securities and Exchange Board of India (SEBI), the report says
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Ratings of 3 MFIs upgraded by ICRA
Noting the resilience in the financial position of three microfinance institutions (MFIs), rating agency ICRA upgraded their ratings. The three MFIs are Grameen Financial Services Private GFSPL), Ujjivan Financial Services (Ujjivan) and Utkarsh Microfinance Private (Utkarsh). According to the agency, the upgrade reflects likely improvement in the resilience of their earnings, superior ability to scale up as well as strengthened capacity to cont
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PE investment declines in micro finance sector
Private Equity (PE) investors are said to be cautious in investing in micro finance institution (MFI) as is reflected in the fall in fund flows from these sources. The amount of PE deals in the MFI sector has been declining year after year with the calendar year 2012 witnessing only $104.5 million worth of deal compared to
$113.04 million in 2011 and $146 million in the previous year, data from VC Circle