According to a report by ratings agency Care, banks in the country would restructure new loan worth Rs 57,782 crore and this would raise the total recast loan book to Rs 312,022 crore next fiscal (2013-14). The report expects banks to carry out most of the restructuring in pipeline during the fourth quarter of this fiscal and through next fiscal if the draft RBI guidelines on re
Tag: Banks
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FIIs invest more in equities than bonds
Reports indicate that Foreign institutional investors (FIIs) are investing more in equities than in debt. Some analysts opine that FIIs are more comfortable with equities because there are no restrictions there. Moreover, arbitrage opportunities in debt may have reduced, they opine. Bankers said the overall cost for an FII to invest in Indi
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FIIs invest more in equities than bonds
Reports indicate that Foreign institutional investors (FIIs) are investing more in equities than in debt. Some analysts opine that FIIs are more comfortable with equities because there are no restrictions there. Moreover, arbitrage opportunities in debt may have reduced, they opine. Bankers said the overall cost for an FII to invest in Indi
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Number of bank loan recast falls in December quarter
The number of cases admitted to the corporate debt restructuring (CDR) cell by banks declined to 24 cases worth Rs 19,650 crore during October-December 2012 compared to 41 cases worth Rs 20,528 crore in the preceding quarter. Industry insiders attribute the decline in CDR cases to the improving economic outlook. With inflation sho
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RBI suggests alignment of existing debt recast pacts with scheme
The existing bilateral debt recast schemes between banks and some power distribution companies may be aligned with the government-introduced debt restructuring scheme, Reserve Bank of India (RBI) suggested. Last year, lenders entered into a debt restructuring agreement with power distribution firms in Uttar Pradesh, Rajasthan and Haryana — who together owe
Rs 8
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Panel suggests allowing banks to issue fixed rate bonds
An expert panel suggested Reserve Bank of India (RBI) to allow banks to issue long-term bonds which carry fixed interest rate in order to mop up resources for lending to infrastructure sector. The panel headed by KK Vohra, Chief General Manager, internal debt management department, RBI, suggested that banks can issue long term bonds with minim
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Board of UCO Bank clears Rs 681 cr fund raising plan
In a filing at the Bombay Stock Exchange (BSE), UCO Bank informed that its board cleared a proposal to raise Rs 681 crore by issuing equity shares on preferential basis in favour of Government of India (GoI). Thus, the bank would issue equity shares on preferential basis for an amount aggregating to the tune of Rs 681
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Early enforcement of Basel III may be challenging for banks
According to global ratings agency Standard & PoorÂ’s, the Indian banking system could face challenges in maintaining or raising capital ratios if Basel-III norms are implemented immediately. The agency said if the Reserve Bank of India decides to implement Basel-III norms immediately Indian banks could face a $3-4 billion (Rs 16,185-21,600 crore) capital shor
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Govt to send slew of proposals to cabinet
Union government would send a series of proposals to the cabinet. Among the proposals are the plan to launch a public sector undertaking (PSU) ETF (exchange traded fund). The cabinet would also receive a proposal to ease the offer for sale (OFS) norms to facilitate easier trades through this mechanism. The ministry is also moving a cabinet note to use the disinvestment proceeds for capitalisation of state-owned bank
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RBI deputy chief for widening investor base in bonds
HR Khan, Deputy Governor, Reserve Bank of India (RBI) called for steps to encourage insurance companies, pension funds, provident funds, and other institutional investors to invest in bonds issued by infrastructure firms. Presently, the insurance and pension funds are legally required to invest a substantial proportion of their fund