INDIAN BANKS MOVE SHORT-TERM FUNDS ABROAD FOR BETTER RETURNS
Article Abstract:
Indian banks have started to deploy their excess funds in the overseas market as returns from short-term overseas instruments are at least 150-200 points higher than that of domestic instruments. The banks, which are at present saddled with surplus rupee funds with sluggish credit offtake and healthy deposit growth, convert the rupee into dollar and deploy it abroad. They can deploy funds up to the extent of their non- resident deposits and overseas investment limit which is 15 percent of their networth or $10 million, which is higher in the overseas markets. The banks can earn a return of around 12.5 percent in the overseas market with cost of funds between eight and 12 percent and it is better avenue to maintain spreads at a time of general slowdown. (gsh)
Comment:
India: Banks have started to deploy their excess funds in overseas market due to low return of domestic instruments
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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RBI FAVOURING INDIAN JVS ABROAD
Article Abstract:
The Reserve Bank of India has cleared 542 proposals for investment in joint ventures abroad till March 1998. The investments amount to over $1 billion. Investments in equity and loans account for $766 million and corporate guarantees for overseas joint ventures account for $298 million. Indian companies are making strategic investments in joint ventures abroad. Ranbaxy Laboratories has invested in China and Latin America. The Government of India has issued guidelines for outward investment. Around 390 fresh proposals to invest overseas were made in 1997-98. (rk)
Comment:
India: Reserve Bank clears 542 proposals for investment in joint ventures abroad for amount of over $1 bil till 3/98
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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INDIAN ORGANIC TEA CARVES NICHE ABROAD
Article Abstract:
Indian organic tea, which is produced without using chemical fertilisers and pesticides, is making a niche for itself in the premium segment of the international market. The country exported over 80 percent of its total output of 2 million kg of organic tea in 1997-98. The government is promoting the exports of organic tea as it commands a premium of 400 percent in the international market. The cost of cultivating organic tea is also lower as the planters use compost and herbs instead of fertilisers and pesticides. (khr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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