RBI BEGINS PROBE INTO SAHARA'S DEPOSIT COLLECTION
Article Abstract:
The Reserve Bank of India (RBI) has started a countrywide enquiry against Sahara India Financial Corporation (SIFC) following the unnatural rise in deposit collection by the company during 1997- 98. The year witnessed crash in deposit collection by other finance companies. According to market intelligence, disbursements made under several poverty alleviation and employment generation programmes are finding their way into SIFC as fixed deposits. The residuary non-banking finance company has been mobilising around Rs100 crore per month in the last one year with deposit base going up from Rs4,000 crore in 1996-97 to over Rs5,000 crore now. The RBI is to enquire whether SIFC has followed the statutory requirement of parking 80 percent of the deposits in defined areas like government securities, fixed deposits with scheduled public sector commercial banks, units of Unit Trust of India and AA+ rated bonds and debentures. After this, an investigation will be conducted on the source of funds. (gsh)
Comment:
Is subject of a countrywide enquiry by Reserve Bank of India over unnatural rise in its deposit collection during 1997- 98
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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NBFCs DEVISE NOVEL WAYS TO RAKE IN DEPOSITS
Article Abstract:
The non-banking finance companies (NBFCs) have come out with a new scheme of mobilising deposits from the public. Under the new scheme, NBFCs will raise funds through re-discounting bills of manufacturing firms with the public investors. The manufacturing firm will get money at desired rates and the investor gets a higher interest rate. The NBFCs will earn their profit by acting as a link by collecting funds from the investors and offering them to the companies at a pre- determined rate of interest. (gs)
Comment:
India: Non-banking finance cos will raise funds through re-discounting bills of manufacturing firms with public investors
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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SANMAC MOTOR FINANCE FD
Article Abstract:
Credit Analysis and Research has downgraded the rating assigned to the fixed deposit programme of Sanmac Motor Finance Ltd from BB to D. This reflects the delay/non-payment of interest and principal on fixed deposits. (khr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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