IDFs play a vital role as investment vehicles that can be sponsored by NBFCs and commercial banks in India. Shrikanth S writes on how IDFs are correcting the asset-liability mismatch, and also help advance loans for fresh infrastructure projects. The urgent need to improve infrastructure prompted the Indian Planning Commission to estimate infrastructure spending in the 12th Five Year Plan (2012-17).
Tag: finance
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Finally the Cure?
Long term financing has been ailing the infrastructure sector making alternate non-banking financing options like Infrastructure Debt Funds (IDFs) more viable. Rahul Kamat and Garima Pant explore the IDF environment in India. The yawning infrastructure gap in the country is seeking closure to unleash its locked growth potential.
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Seeking Revival
The 6th Annual India Roads Conference organised by ASAPP Media invited industry think tanks and sector people to deliberate, discuss and ponder over the issues plaguing the roads sector in the country. The conference focused on 'Accelerating India's Road to Growth'.
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Borrowing of infra firms rises faster than revenue
Official data shows that the borrowing of 17 construction and infrastructure (C&I) companies that are part of the BSE-500 index has risen more than their revenue and net profit during the last five years since 2008. While borrowings of these firms rose a little over five times, to Rs 2.7 lakh crore since 2008, their revenue and cas
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Rupee weakness to have minimal impact on Hindalco
Kumar Mangalam Birla, Chairman of Hindalco Industries said the impact of rupee depreciation on the company's balance sheet would be minimal as it does not have much of foreign currency loan. Addressing shareholders at the companyĂâs 54th annual general meeting, Birla said the firm has a foreign loan of only $100 million and so the impact of rupee deva
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PFC to issue tax free bonds
State-run Power Finance Corp is in the process of issuing around Rs 150 crore ($23 million) worth of tax-free bonds across different maturities. While the firm would issue 10-year tax-free bonds at 8.04 percent, 15-year bonds at 8.41 percent, and 20-year bonds at 8.40
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RBI working paper moots new banking structure
The Reserve Bank of India (RBI) released a discussion paper on the proposed structure of banking system in India. The paper calls for abandoning the present two-tier banking structure in favour of a four-tier banking structure, which would usher in more competition, and resilience in the
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RCap expects to reduce debt if given bank license
The debt-to-equity ratio of Reliance Capital would decline to 0.5 from 1.7 if the company manages to get banking license from Reserve Bank of India (RBI). It may be recalled that the central bank invited application for new bank licenses from corporates, non banking finance companies and other entities earlier. Follo
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SBH chief rules out merger with SBI at present
M Bhagavantha Rao, Managing Director of State Bank of Hyderabad (SBH) ruled out the possibility of merger of the bank with State Bank of India (SBI) at the moment considering the bifurcation of Andhra Pradesh. It may be recalled that a separate state of Telangana has been carved out from Andhra Pradesh recently and the ensuing political situation is not cond
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Banks may lend Rs 60 bn more to Essar Steel
In order to prevent Essar Steel from approaching
the corporate debt restructuring (CDR) cell, lenders to the company provided an further loan of Rs 6,000 crore. The company borrowed this amount at an interest rate of 12.50 percent. The Ruia-group firm would use around Rs 2,000-2,500 crore of the Rs 6,000 crore to repay group com