Bankers seek pro-industry measures from RBI

Although the RBI has expressed concerns about the slow deposit and credit growth rates, given the high inflation, it may not go in for a rate cut on 31st July

Mumbai: Bankers on Monday sought pro-industry and liquidity easing measures from the Reserve Bank of India (RBI) as it prepares for the first quarter monetary policy review on 31st July, reports PTI.

"Though liquidity is comfortable as of now, we have sought some money supply measures and a pro-industry stance at the forthcoming monetary policy announcement considering the poor show by the economy in the recent months," Bank of India CMD Alok Kumar Misra, who is also the chairman of the Indian Banks Association (IBA), told reporters after the customary pre-policy meeting with the RBI.

"It could be a cut in the cash reserve ratio (CRR) or in the short-term lending rate (repo rate). Even China has cut its repo rates twice in one month," Misra said.

However, he parried a question on whether the RBI is in a mood to listen to the demand for a rate cut.

Misra said RBI has expressed concerns about the slow deposit and credit growth rates.

However, HDFC Bank MD and CEO Aditya Puri said that given high inflation (at 7.6% in May), he does not see any rate cuts on 31st July.

"A rate cut is not a panacea for all the pains of the economy. At the current inflation rate, I don't see any room for the central bank to cut interest rate. While the RBI can do something to ease money supply, the government should do everything to ease supply-side bottlenecks," Puri said.

SBI MD and CFO Diwakar Gupta said the bankers presented "their wish-list to the deputy governors", but did not elaborate.

However, Gupta and Misra said they discussed the rising stress levels in the system due to the increasing bad loans, but again they refused to divulge details on which are the sectors under stress.


Siemens to supply vacuum de-gassing plant to Jailaxmi Casting

Siemens VAI Metals Technologies would set up the de-gassing plant at Jailaxmi Casting’s facility at Aurangabad that would be able to process around 1.1 lakh tonne of liquid steel every year

Mumbai: Germany-based Siemens has received an order to supply a 35 tonne vacuum de-gassing plant to Jailaxmi Casting and Alloys at its unit in Aurangabad, reports PTI.

No financial details were provided.

The contract has been awarded to the group's subsidiary Siemens VAI Metals Technologies for setting up the plant, which is expected to be commissioned by 2012-end, a company release said.

The new de-gassing plant will be able to process around 1.1 lakh tonne of liquid steel every year, it said.

"Siemens will design and supply the entire mechanical and electrical equipment for the vacuum de-gassing plant. This includes the vacuum tank, cover structure, including a simplified lifting device for the shop crane, the gas cooler and vacuum filter. The plant will be driven by a mechanical vacuum pump," the release said.

Jailaxmi Casting and Alloys, which runs a mini mill melt shop in Aurangabad, has been producing special and alloy billets and bars for the automotive industry and the regional construction industry.

"With the new vacuum de-gassing plant, Jailaxmi Casting and Alloys will further improve the quality of its crude steel in order to continue to reliably fulfil its customers' continually rising quality requirements," it said.


IndiaBulls Finance lends Rs450 crore to Sheth Developers

Sheth Developers said the funds from IndiaBulls would be used for completion of its Vivacity Mall in Thane and to pay off existing debt

Mumbai: In times of caution on the realty sector expressed by lenders, realty company Sheth Developers on Monday said it has received a debt funding of Rs450 crore from Indiabulls Finance for an upcoming mall, reports PTI.

The funds will be used for the completion of the mall project in the adjoining suburb of Thane and pay-off existing debt, the company said in a statement.

It said the entire space in the 1 million sq ft Vivacity Mall has been fully leased even before completion of the project and claimed that it has a waiting list of 30 brands vying to move in.

"The support extended by Indiabulls reiterates our strong business fundamentals and robustness of Vivacity's revenue model," Managing Director Ashwin Sheth was quoted as saying.

Due to stress in assets arising out of excess supply and mounting inventories, especially on the commercial side, lenders have been cautious on the sector.


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