RBI SETS GUIDELINES FOR LENDING TO PROPRIETORS
Article Abstract:
Reserve Bank of India (RBI) has set norms for lending to proprietors to meet their requirement in the equity participation of new projects. RBI has given guidelines for banks, which intends to offer loans against promoter's equity. Under the RBI's new norms, loans can be offered to promoters to meet the promoter's needs towards his contribution in new projects, for expansion of capacities and to meet working capital requirements. Loans cannot be offered in cases such as takeover projects, intercorporate investments and unproductive investments. Loans sanctioned against promoter's equity will be treated as the bank's investment in shares and will become a part of the 5 percent ceiling on incremental deposits of the previous year. RBI has provided full freedom for banks to determine the margin requirements of loans and the period of repayment. (gs)
Comment:
India: Reserve Bank of India sets norms for lending to proprietors to meet requirement in equity participation of new projects
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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SREI FIN TO PUMP Rs800 CR IN CORE SECTORS
Article Abstract:
The SREI International Finance Ltd has decided to finance three infrastructure projects in the power, port and road sectors involving Rs800 crore. These projects, to be developed by Indian promoters, include a Rs400 crore, 100 mw power project in Andhra Pradesh, a Rs260 crore minor port project in Gujarat and a Rs150 crore road project in Maharashtra. The projects will be financed through syndicated funding got from multilateral funding agencies including IFC of the US, FMO of the Netherlands and KFW of Germany. (khr)
Comment:
Decides to finance 3 infrastructure projects in power, port & road sectors involving Rs800 crore
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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