Infrastructure finance companies can raise funds upto 75 per cent of their net worth through external commercial borrowing (ECB) without seeking clearance from the Reserve Bank of India (RBI). This is because the central bank liberalised the norm in or
Tag: RBI
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Rangarajan favours non corporates for bank licenses
Agency reports suggest that C Rangarajan, Chairman of Prime Minister's Economic Advisory Council wants the Reserve Bank of India (RBI) to give first priority to non-corporate applicants for banking licenses. Rangarajan has reportedly said that the central bank must look at various types of financial institutions that
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Corporate bond market
In order to develop a vibrant corporate bond market, the Union Finance Ministry is planning some steps in collaboration with Reserve Bank of India (RBI) and the Ministry of Corporate Affairs (MCA).
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Stiglitz cautions against bank license to corporates
At a time when Reserve Bank of India (RBI) is planning to give banking licenses for new players, some experts caution against allowing corporates to set up banking business. Highliting the risk of conflict of interests, Nobel laureate Joseph Stiglitz said corporates should not be allowed to enter banking
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Restructured loan ratio rises in banking system
Data from Reserve Bank of India (RBI) suggests that the ratio of restructured to gross advances is at a five-year post-Lehman high of 5 per cent for the banking system as a whole. It may be recalled that in 2008-09, RBI allowed the Ăâone-timeĂâ dispensation to restructure sub-standard asse
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RBI revises norms for lending to small units
In view of the increase in price index and cost inputs, Reserve Bank of India revised sub-targets for lending to the micro and small enterprises sector. According to the new norms, banks must divert 40 per cent of total advances to the sector to micro (ma
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Banking system must promote economic growth
Experts urge that Reserve Bank of India (RBI) must give banking license to new banks with the objective of facilitating economic growth and driving financial inclusion. They feel that having very few large banks should not be the intention of policy makers while giving licen
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Infrascape 2013 | Optimistic growth of steel
The overall performance of the steel sector is Ăâoptimistic.Ăâ In the fiscal 2012-2013, growth in domestic steel demand is expected to be around five and a half per cent. The total demand is expected to be around 75 million tonnes, up from 71 million tonnes in 2011-2012.
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Infrascape 2013 | We do not expect any dramatic impĂÂrovement in 2013
The year 2012 has been a challenging year for the logistics sector as the economic slowdown affected manufacturing leading to general decline in the movements of goods across sectors like auto, commercial vehicles, heavy engineering and capital goods. Tight credit situĂÂation, no major policy reforms and weak demand made the situĂÂation further difficult for the sector.
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Restructuring must be done only when viability is not in question
Rather than having viability problems, infrastructure projects are typically Ăâfront-endedĂâ, so it is often the mismatch between the lending and the projectĂâs revenue-making tenures that lead to an increased likelihood of restructuring, says Arundhati Bhattacharya, MD & CEO of SBI Capital Markets in an interaction with Sumantra Das.