According to a government data, India's external debt rose 12.9 per cent to $390 billion as at end March 2013 from the previous year. Of the total external debt, external commercial borrowings (ECB) by Indian companies contributed almost a third. Deposits from Non-Resident Indians (NRIs) constituted 18.2 per cent of the external debt. Worryingly, short-term debt constituted about a fourth of the countryÂ’s
Tag: loan
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World Bank gives $84 mn loan for Bihar project
An agreement for credit of $84 million (equivalent) from World Bank for the Bihar Panchayat Strengthening Project was signed. Nilaya Mitash, Joint Secretary, Department of Economic Affairs, Ministry of Finance signed on behalf of Government of India and Michael Haney, Operations Advisor, World Bank, India on behalf of the World Bank. On behalf of Government of Bihar, Amitabh Verma, Principal Secretary, Department of Panchayati Raj signed the
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Lenders approve restructuring of Electrosteels’ debt
Kolkata-based Electrosteel Steels, which produces DI pipes and casting, may not have much difficulty in restructuring its Rs 7,000 crore loan as the consortium of 27 lenders are open to recast it provided some conditions are fulfilled. The firm produces and supplies ductile iron (DI) pipes and fittings and is three-star export house. It was the first domestic company to set up a ductile iron pipe plant apart from pioneering manufacture of alloy steel cast
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Essar Steel raises $1 bn via ECB
In order to reduce interest cost, Essar Steel decided to swap rupee debt with dollar loans. As part of this initiative, the flagship firm of Ruia Group raised $1 billion through external commercial borrowings (ECB), thereby saving interest cost by at least 6 percent or 450 crore. Banks led by IDBI and ICICI Bank subscribed to the ECB. The company is making attempt to convert its rupee liabilities into dollar as its earnings are in
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Prudential norms for housing finance firms may be relaxed
RV Verma, Chairman and Managing Director of National Housing Bank (NHB) has informed a leading media that the body would relax prudential norms for housing finance companies (HFCs). NHB plans to relax prudential norms for housing finance companies following Reserve Bank of India's (RBI) decision to reduce risk weight on banks' home loan over Rs 2
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World Bank sign $216 mn loan pact for Kerala projects
World Bank signed a $216 million loan agreement with the Government of India and the Government of Kerala for the second Kerala State Transport Project. The loan agreement was signed by Nilaya Mitash (Joint Secretary, Department of Economic Affairs) on behalf of Government of India and Onno Ruhl, Country Director, World Bank (India) on behalf of the World Bank
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Dena Bank to strengthen presence in eastern regions
Ashwani Kumar, Chairman and Managing Director of the state-run Dena Bank said the bank decided to set its footprint in the eastern part of the country especially in West Bengal and Bihar. The state-run bank, which is predominantly present in the western part of the country, is turning to east as the region appears less crowded and shows opportunity
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NPAs of banks rises 31.8% in FY13
RBI Deputy Governor HR Khan informed that the gross non-performing assets of banks rose 31.8 per cent, while restructured standard advances expanded 40 per cent in 2012-13. Speaking at an event in Thiruvananthapuram, Khan attributed the rise in the NPAs to uncertain macroeconomic environment, underlying issues in credit assessment and bad loan management by
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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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Some banks recast debt outside CDR framework
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