For undertaking home loans business in the North-Eastern part of India, Life Insurance Corporation of India Housing Finance (LIC Housing Finance) is planning to float a separate subsidiary or special purpose vehicle (SPV). The second largest standalone housing finance company of the country has hit upon this strategy as local laws in some of the North-Eastern States do not allow creation of a mortgage to convey a property as security to a lender against a loan.
Category: Infrastructure Finance
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Clean chit to co-operative banks
National Bank for Agriculture and Rural Development (NABARD) has stated that it has found no money laundering in co-operative banks, Nabard's Chairman Prakash Bakshi has stated. His statement comes amid
allegations of co-operative banks being used as conduits for money laundering. NABARD jointly regulates co-operative sector banks who lend loans.
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Investors await clarity on tariff policy of govt
Some section of the union shipping ministry feels that private investors are keenly awaiting the government's decision on tariff norms in the port sector before investing. Particularly, private players are awaiting government's decision on a proposal to transform the Tariff Authority of Major Ports (TAMP) from a regulatory body into an appellate body. TAMP regulates tariffs in cent
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Plan panel agrees on Rs 340 bn outlay for Bihar
During a meeting between Deputy Chairman of the Planning Commission Montek Singh Ahluwalia and Bihar Chief Minister Nitish Kumar, a plan outlay of Rs 34,000 crore was fixed for the state in 2013-14. This outlay is 34 per cent higher than the previous fiscal. The central government agreed to release Rs 12,000 crore through Backward Region Grant Fund during the 12 th Plan (2012-2017). This fund is to be used mainly for ene
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Experts call for need to develop bond market
Experts stress on the need for a coordinated effort from the government, Reserve Bank of India, Securities and Exchange Board of India and Insurance Regulatory and Development Authority (IRDA) to create a vibrant corporate bond market. Analysts point out that the exisiting primary issuance guidelines are constraining issuance of bonds in the debt market by corporates. Additionally, the corporate bond mar
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AP accounts for 22% of gross loan of MFIs
During Jan-Mar 2013, Andhra Pradesh accounted for 22 per cent of the gross loan portfolio held by all the microfinance companies (MFIs) that are the members of the industry body Micro Finance Institutions Network (MFIN). However, all of the above loan exposure turned non performing asset (NPA). According to a government repo
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India Post’s banking dream gets thumbs down from govt
Unconfirmed reports indicate that the union finance ministry opposes the proposal of India Port to foray into banking venture. Officials of the finance ministry raised doubt about the ability of India Post to conduct banking business. It may be recalled that India Post plans to apply for a banking license from
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Survey highlights need to boost funding for MSMEs
Government must take steps to promote flow of funding to Micro, Small and Medium Enterprises (MSMEs) in order to ensure growth in the sector. According to a Ficci-Grant Thornton survey, inadequate credit facility is one of the factors that thwart the expansion plant of majority of companies in the sector
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Recovery in sight for small MFIs in FY14
Venkatesh N, Managing Director of Samasta Microfinance expects smaller microfinance institutions (MFIs) to regain their financial position in 2013-14. He expects recovery in the financial position of these MFIs to be driven by the renewed interest of banks and risk capital investors in the sector
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Net profit of PNB declines 21%
Net profit of state-owned Punjab National Bank declined almost 21 percent to Rs 1,131 crore during January-March 2013 owing to rise in provisions. The state-run firm witnessed 44 percent rise in provisions on a year-on-year basis to Rs 1,478 crore. Total provisions were inclusive of all components like loans, investment and gratuity