In January this year, the Malegam Committee had suggested a cap on the interest rates charged by micro finance institutions (MFIs) at 24% and also limiting the total loan cap to an individual at Rs25,000
New Delhi, May 2: The Reserve Bank of India (RBI) is likely to set different credit limit for loans extended to rural and urban borrowers by micro finance companies, while recommending a 24% interest rate cap on such loans, reports PTI.
An announcement to this effect is expected to be made by the central bank in its annual credit policy for 2011-12 tomorrow, sources said.
In January this year, an RBI committee, headed by YH Malegam, had suggested a cap on the interest rates charged by micro finance institutions (MFIs) at 24% and also limiting the total loan cap to an individual at Rs25,000.
Sources said after extensive discussion with the stakeholders, the RBI has come to the view that the quantum of loan extended to customers should depend on different parameters.
As such, the individual loan cap as suggested by the Malegam Committee is likely to be tweaked and the RBI would announce different limits for rural and urban customers, sources said.
The MFIs were allegedly charging interest rates of over 30%, which was along with their reported coercive recovery tactics.
As regard the loan recovery period, the RBI is likely to allow MFIs to recover their dues on a monthly basis. However, the repayment tenure would be less than 12 months for loans below Rs15,000 and less than two years for loans above Rs15,000.
The RBI had constituted the Malegam panel to suggest steps for streamlining the micro finance sector which drew flak for overcharging and use of coercive methods to recover loans from small borrowers.
On repayment, it said, the borrowers be given the option of weekly or fortnightly or monthly return of the loan.
About the regulations of MFIs, the Malegam Committee suggested that it should be done by the National Bank for Agriculture and Rural Development (NABARD) in close coordination with the RBI. At present RBI controls all profits for MFIs.
Micro finance—the business of doling out small loans at high interest rates to poor who are unable to access bank credit—has come under intense regulatory scrutiny, following an ordinance passed by the Andhra Pradesh government.
During the quarter, the company acquired 85% stake in Vietnamese firm International Consumer Products Corporation. It also divested its edible oil brand ‘Sweekar’ to Cargill India for a consideration of Rs50 crore
Mumbai: Fast Moving Consumer Goods major Marico, which sells hair oil brands like “Parachute” and “Nihar’, today posted a 40% jump in its consolidated net profit to Rs71.62 crore in the quarter ended 31 March 2011 compared to Rs51.15 crore in the quarter ended 31 March 2010, Marico said in a filing to the Bombay Stock Exchange, reports PTI.
Marico’s consolidated net sales, during the quarter under review, increased by 24% to Rs747.35 crore from Rs602.26 crore recorded in the year-ago period.
During the quarter, the company acquired 85% stake in Vietnamese firm International Consumer Products Corporation, it added. Besides, the company has also divested its edible oil brand ‘Sweekar’ to Cargill India for a consideration of Rs50 crore.
For the year-ended 31 March 2011, Marico’s net profit stood at Rs 286.44 crore, a 23.6% jump from Rs231.67 crore in the previous fiscal.
During the period, the company posted net sales of Rs3128.31 crore as against Rs2660.75 crore in the year-ago period.
On a standalone basis, Marico’s net profit in the quarter ended 31 March 2011, stood at Rs131.81 crore as against Rs60.40 crore posted in the year-ago period.
On a standalone basis, the company suffered a loss Rs11.86 crore in the January-March quarter, as against a profit of Rs15.33 crore in the corresponding three-month period a year ago
New Delhi: Tyre major Ceat today reported an 83.71% decline in consolidated net profit for the year ended 31 March2011, to Rs26.46 crore from Rs162.47 crore in the same period of the previous fiscal, the company said in a filing to the Bombay Stock Exchange. The company attributed the decline in profit to high raw material costs especially that of rubber, reports PTI.
Ceat's consolidated total income during the year stood at Rs3,641.68 crore, as against Rs2,873.23 crore in the year-ago period, up 26.74%.
The company said its board has declared a dividend of Rs2 per share for the fiscal in consideration.
During the fiscal, the firm said its expenditure on raw materials stood at Rs2,750.51 crore, as against Rs1,733.32 crore in the same period of the previous year.
On a standalone basis, the company suffered a loss Rs11.86 crore in the January-March quarter, as against a profit of Rs15.33 crore in the corresponding three-month period a year ago.
"Escalating raw material prices, especially natural rubber, have impacted the profitability for the (fourth) quarter," the company said.
Standalone total income during the quarter stood at Rs1,000.92 crore as against Rs781.5 crore in the corresponding period of the previous fiscal.