According to a study by CARE Research, some banks are restructuring the debt of their borrowers through bilateral negotiation without referring the cases to the corporate debt restructuring (CDR) cell. The study found that out of the Rs 177,333 crore outstanding restructured advances of 10 large banks, only Rs 58,366 crore worth of loans were referred to the CDR cell
Tag: borrowing
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PSU banks may benefit from falling yield on govt bonds
During April-June 2013, public sector banks may earn Rs 5,000 crore to Rs 7,000 crore owing to treasury gains as yield on government securities have declined by 60 basis points during April and May this year. This estimate on the treasury gains of state-run banks was given by Icra in a recent research report. The report noted that yield of government securities has fallen in the last two months and this will improve earnings of public
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Banks take steps to recover bad loans
Media reports indicate that several public sector banks (PSBs) are taking steps to recover loan amount from defaulting corporate borrowers by publishing their names and thereby denting their image. This move by state-run banks is a remarkable shift from their traditional approach of going soft with defaulting borrowers
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ECB facility may promote affordable housing projects
Industry players expect the Reserve Bank of India's (RBI) move to allow real estate developers raise funds from External Commercial Borrowings (ECB) would increase the supply of low-cost houses. It may be recalled that the central bank allowed developers and housing finance companies to raise a maximum of $1 billion for affordable housing
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Borrowers of MFI challenge HC order
Nine borrowers of microfinance institutions (MFIs) in Medak and Warangal districts of Andhra Pradesh filed a petition in the Supreme Court in early May 2013 challenging a state high court order. In February 2013, the Andhra Pradesh high court asked the state government to review a law that restricted multiple lending by MFIs to the same borro
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RBI head asks states to focus on fiscal consolidation
Addressing a gathering of state finance secretaries Reserve Bank of India (RBI) Governor D Subbarao asked states to focus on the quality of fiscal consolidation and also on expenditure compression. He called for the need to explore ways for better cash management and adequate dissemination of information on state finances. Considering the rise in market borrowing of states, inflation risks and banks' excess investments in statutory liquidity ratio (SLR) securities, he said managing state gove
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EIB commits 150 mn euro funding for clean energy projects
European Investment Bank (EIB) agreed to support renewable energy projects in India by committing a 20-year 150-million euro loan facility to the Exim Bank. Exim Bank would use the fund under the facility to lend for energy projects, notably wind, solar photovoltaic, concentrated solar power, hydro-power, geothermal, biomass and efficient co
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Govt optimistic on loan recovery by banks
Some finance ministry officials expressed confidence that the public sector banks (PSBs) would achieve remarkable improvement in reducing bad loans. Bad loans of state-run banks have been rising because of the slowdown in the economy and weak financial position of
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Tata Steel to issue dollar bonds to raise $1 bn
Media reports indicate that Tata Steel plans to rise $1 billion through issue of foreign currency bonds mainly to refinance loans. November 2009 was the last time the company raised dollar-denominated bonds. Besides this, the company would raise Rs 130 billion for its 6-million metric-tonne steel plant project in the eastern state of Odisha. The plant would be built in phas
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Govt to sell Rs 150 bn worth bonds every week
According to the government borrowing calendar for Apr-Sep 2013, the centre would issue Rs 150 billion worth bonds on an average every week during the six months. Thus, in the first six months of the next financial year, the government would borrow Rs 3.49 trillion or 60 percent of the full-year gross target. On a net basis, the g