In a conference call with market participants, officials of Reserve Bank of India (RBI) clarified several issues on the proposed auction of Inflation Indexed Bonds (IIBs), which is scheduled on June 4. One of the remarkable information that the officials shares is that the central bank may use Consumer Price Index (CPI) as a benchmark for these bonds once the CPI stabilises
Category: Infrastructure Finance
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L&T gets top rating from CRISIL for bond issue
Considering its strong financial position and market leadership, CRISIL gave 'CRISIL AAA/Stable' rating to Larsen & Toubro (L&T's) Rs 100 crore inflation linked capital indexed non-convertible debenture issue. L&T got this top rating owing to its diversified revenue profile, strong financial flexibility, and its dominant position in the engineering and construction (E&C) market in
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IL&FS to bolster presence in merchant banking segment
According to source-based information, Infrastructure Leasing and Financial Services (IL&FS) plans to strengthen its presence in the merchant banking business to cater to infrastructure companies. A top official of the firm is quoted as saying that the firm wants to increase its presence for doing initial public offers and merchant banking activities. In 2008, the firm divested 73.21 per cent stake in its merchant banking division IL&FS Investsmart to HSBC for arou
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MFIs exercise caution on lending to MLMs
Microfinance institutions (MFIs) in the country have reportedly started scrutinising the investment of their large borrowers following the Saradha chit-fund scam. While so far MFIs were verifying the client profile mostly through word-of-mouth from group members, now they are seeking data on investments from borrowers who invested in multi-level-marketing (MLM) companies. Som
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NHB chief rules out need for unified regulator
RV Verma, Chairman and Managing Director of National Housing Bank (NHB) ruled out the need for a unified regulator for banks and housing finance companies (HFCs). He said there is no need for a single regulator for banks and HFCs as there is not regulatory arbitrage as pointed out by SBI Chairman Pratip Chaudhuri
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RBI may reduce repo rate in June 17 policy review
Market analysts and economists expect Reserve Bank of India (RBI) to reduce policy repo rate in its mid-quarter policy review on June 17 considering the fall in inflation and sluggish economic growth. Earlier, RBI said it would take into account falling inflation while deciding on policy initiative in its review next month
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RBI may reduce repo rate in June 17 policy review
Market analysts and economists expect Reserve Bank of India (RBI) to reduce policy repo rate in its mid-quarter policy review on June 17 considering the fall in inflation and sluggish economic growth. Earlier, RBI said it would take into account falling inflation while deciding on policy initiative in its review next month
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Chidambaram in favour of merging public sector banks
Union Finance Minister P Chidambaram has stated that the 26 State-owned lenders may be better to be merged.
Some banks, including among the 26 public sector banks that the country has, may be better off merging, Chidambaram said in his inaugural lecture on the occasion of Annual Day of Competition Commission of India. The need for two or three world-sized banks in an economy that is poised to become one among the five largest in the world is rather obvious, he added.
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Experts point to issues in microfinance sector
Experts and industry observers highlight some of the issues in the Indian microfinance industry which impede the ability of the microfinance model to eradicate rural poverty. Notable among them is small size of micro credit provided by microfinance institutions (MFIs) which makes investment unprofitable. Some experts argue that unless loans
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IL&FS, ICBC Hong Kong to cooperate on infra projects
Hong Kong-based Industrial and Commercial Bank of China (ICBC) signed an agreement with India's Infrastructure Leasing & Financial Services to aid infrastructure projects in the north and east Asia. This is one of the leading banks in Hong Kong and also a wholly owned subsidiary of Industrial and Commercial Bank of China