Essar Ports will gradually ask its port users to pay tariff in US dollar instead of rupee. This means, the company would receive tariff in dollars from customers and convert the same into rupees at the prevailing exchange rate. After Gujarat Pipavav shipyards, Essar Ports would be the second port operator to start moving away from rupees while charging tariff, reports
Tag: interest rate
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PE investment declines in micro finance sector
Private Equity (PE) investors are said to be cautious in investing in micro finance institution (MFI) as is reflected in the fall in fund flows from these sources. The amount of PE deals in the MFI sector has been declining year after year with the calendar year 2012 witnessing only $104.5 million worth of deal compared to
$113.04 million in 2011 and $146 million in the previous year, data from VC Circle
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WPI inflation falls to 42-month low of 4.7%
Inflation as measured by the Wholesale Price Index (WPI) declined to a 42-month low of 4.7 per cent in May 2013 from 4.89 per cent in the previous month and 7.55 per cent in May 2012. The decline in the prices of manufactured items helped inflation to ease in May even as the price level of food articles rose. The prices of manufactured items declin
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Rates on CDs remain above 8%
Owing to the outflow of corporate advance tax from the banking system, rates on the Certificates of Deposit (CDs) are ruling high above 8 percent, media reports indicate. The first instalment of corporate advance tax is due on June 15. Advance tax outflow has strained liquidity in the banking system with banks borrowing about Rs 85,000 crore on an average under RBIÂ’s liquidity adjustment facilit
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RBI refrains from reducing policy rate, keeps CRR unchanged
A resolute Reserve Bank of India (RBI) refrained from reducing policy repo rate in its mid-quarter review of monetary policy on June 17, 2013 citing the persistently high food inflation even though general inflation has declined. Thus, the policy repo rate under the liquidity adjustment facility (LAF) remains unchanged at 7.25 per cent and the reverse repo rate remains at 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 8.25 per cent. The central bank also kept
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Essar Oil to replace rupee debt with dollar loans
Essar Oil plans to to replace its rupee borrowings with dollar borrowings in order to reduce interest cost and extend the maturity period of its debt. The reduction in interest cost is expected to boost returns from the refinery business of the firm. The company increased borrowing to finance its refinery expansion project, which was completed in March 2012. It raised its refinery capacity to 20 million tonne per annum and complexity to
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Care Ratings expect 25 bps cut in repo rate by RBI
In an analyst note, Care Ratings said it expects Reserve Bank of India (RBI) to reduce repo rate by 0.25 per cent at the mid-term monetary policy review on June 17. In its May policy review, RBI cut the repo rate by 0.25 per cent and maintained that scope to further slash the short-term rate is
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Minister asks banks to reduce lending rates
Finance minister P Chidambaram wants commercial banks to reduce lending rates in response to the easing monetary policy stance of the Reserve Bank of India (RBI). While the RBI reduced the policy repo rate three times this year since January, banks have not passed on the rate cut to customers in terms of lowering interest rates on lending
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Essar Ports chief feels its debt level is reasonable
Rajiv Agarwal, MD and CEO of Essar Port is quoted as saying that the debt level of the company (Rs 5,700 crore) was reasonable for the size of the firm. The firm has an equity of about Rs 2,800 crore and a debt of about 5,800 crore. The company is making efforts to reduce the interest cost, he is quoted as saying in a media
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SBI to take Rs 2 bn hit due to provisioning norms
Pratip Chaudhuri, Chairman of State Bank of India (SBI) informed that the total impact of Reserve Bank of India (RBI)Â’s revised norms on provisioning for non-performing assets (NPAs) and restructured loans would be about Rs 200 crore a year. He said this would be less than 1 per cent on a PBT (profit before tax) basis and hence it may not have a significant impact on SBIÂ’s profitability