In order to ensure competitiveness in the banking sector, there is a need to adopt a 'continuous authorisation' policy, Reserve Bank of India (RBI) said in a research paper. The paper calls for reviewing the current 'Stop and Go' licensing policy and adopt a 'continuous authorisation' policy as continuous authorisation keeps the competitive pres
Tag: finance
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Govt may hold capital infusion until market stabilises
Unconfirmed reports indicate that the government may wait for the stock market to stabilise before infusing capital into state-run banks. The government feels that the chances of losing huge amount of money is lower once the stock prices reach a stable
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Banks adequately capitalised despite rising bad loans
In its annual report, Reserve Bank of India (RBI) said the banking system is adequately capitalised despite the rising trend in the gross non-performing assets (NPA). The gross NPA rose to 4.4 per cent of the total advances by March 2014 from 3.42 per cent a year ago.
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Bank credit to infra sector rises
Bank credit to infrastructure sector rose over 100 times to Rs 786,045 crore in 2012-13 from Rs 7,243 crore in 1999-2000, Reserve Bank of India (RBI) said in its annual report. The report shows that credit exposure of banks to infrastructure sector has been deteriorating since 2011 owing to the economic slowdown and the emergence of sector-specific issues amid structural bottlenecks in the econ
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Financial strength ratings of banks downgraded
International ratings agency Moody's downgraded the bank financial strength ratings or BFSRs and the issuer ratings of some state-run banks viz. Bank of Baroda, Canara Bank and Union Bank. Moody's also downgraded by one notch their local currency deposit ratings. While it affirmed the ratings of Union Bank of India, it changed the outlook on its BFSR to n
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Ministry allows sovereign funds to invest in tax free bonds
Media reports indicate that the finance ministry allowed sovereign wealth funds to invest in debt instruments floated by state-run companies. It may be noted that the government allowed 13 state-run firms to raise around Rs 48,000 crore by selling tax- free bonds in 2013-14. The fund would be used for infrastructure such as roads, ports and power plants
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MMRDA mulls betterment tax to fund infra projects
In order to raise funds for key transport projects in city, Mumbai Metropolitan Region Development Authority (MMRDA) proposed a new cess, known as betterment tax, to be imposed on citizens residing along or in the vicinity of the upcoming projects. The idea is at the proposal stage and it awaits the approval of the state government. The state urban development department would finalise a blueprint for this
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Ennore Port to select contractor for $210 mn project
Ennore Port is in the process of selecting a contractor for the construction of a $210 million multi cargo terminal with a quay length of 270 m. The port, which is is the first Corporatised Major Port under the management control of Ennore Port (EPL), received 11 initial bids from private groups for the project. The scope of work of the project, namely Ennore Port multi cargo terminal will broadly include: design, finance, cons
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Rs 100 bn sea link project finds no taker
Despite the 20 per cent viability gap funding offered by the government, no private player is ready to bid for the 22-km trans-harbour sea link road project connecting New Mumbai to Sewri. This is because infrastructure developers feel that the Rs 10,000-crore project is unviable as it involves high finance costs and lack of liquidity
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Govt may help firms insuring oil import from Iran
Media reports indicate that the union finance ministry plans to cover half of a proposed Rs 40 billion fund for underwriting the import of crude oil from Iran. It may be recalled that the union oil ministry and local insurers decided to contribute Rs 10 billion each to the proposed fund