Banks in India borrowed Rs 26.5 billion ($435 million) from the Reserve Bank of India's marginal standing facility window on July 30. The RBI had raised the marginal standing facility (MSF) rate by 200 basis points to 10.25 per cent and also imposed restrictions on daily borrowings by banks under its repo window.
Tag: Banks
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Lanco approaches CDR cell to recast Rs 90 bn debt
In view of the challenging economic condition, Lanco Infratech approached corporate debt restructuring (CDR) cell to recast its Rs 9,000-crore debt. Of the Rs 9,000-crore debt, Rs 4,000-crore is fund-based exposure and Rs 5,000-crore non-fund-based.
The company is holding discussions with bankers in this rega
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Banks must adopt system to comply with KYC norms
Reserve Bank Deputy Governor KC Chakrabarty said asked banks to adopt a system to identify violations in know your customer (KYC) norms and rectify it immediately. Chakrabarty said this in the context of the recent Cobrapost expose, which claimed that almost
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CGTMSE may rationalise guarantee fee
Media reports indicate that the Credit Guarantee Fund Trust for Medium and Small Enterprises (CGTMSE) plans to rationalise the annual guarantee fee payable by banks for insuring their loan to small business units. Presently, CGTMSE collects guarantee fee at 1 per cent of the loan limit per annum throughout the tenure of the loan
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Minister urges state-run lenders to trim base rate
At a review meeting with top officials of state-run banks, Finance Minister P Chidambaram urged them to cut base rates in order to spur credit growth in the economy. Chidambaram feels that reduction of the base rate will be a powerful booster to credit growth and this may in turn turn around the economy, which grew at a decade-low pace of 5 percent in 2012-13. The minister argues that while Reserve Bank of India trimmed policy rates by 125 basis points, banks must
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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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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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RBI includes 3 more sectors in infra category
Slurry pipelines and capital dredging projects would be eligible for concessional loan from banks as the Reserve Bank of India (RBI) brought these sectors under the ambit of infrastructure lending. Besides the above sectors, the central bank also brought telecom and telecommunications services under the infrastructure ambit. This will make loans cheaper to companies in these sectors.
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NPAs of banks rises 31.8% in FY13
RBI Deputy Governor HR Khan informed that the gross non-performing assets of banks rose 31.8 per cent, while restructured standard advances expanded 40 per cent in 2012-13. Speaking at an event in Thiruvananthapuram, Khan attributed the rise in the NPAs to uncertain macroeconomic environment, underlying issues in credit assessment and bad loan management by
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Officials discuss issues in stressed loan mkt
Usha Thorat, Director of the Centre for Advanced Financial Research and Learning (Cafral), held discussion with banks, rating agencies and asset reconstruction companies (ARCs) on the issues in the stressed loan market. Typically, banks sell non performing assets (NPAs) to ARCs, which in turn tries to recovers the loan from the borrowers. ARCs acquire stressed assets from banks at a mutually agreed upon price and then recover it fro