Here is a real-life story of the games banks and insurers play with your money even as the...
The RBI in a notification on Monday relaxed the ECB norms for affordable housing projects by withdrawing the minimum capital requirement and lowering total experience to three years
The Reserve Bank of India (RBI), on Monday, relaxed the external commercial borrowing (ECB) norms for affordable housing projects by withdrawing the minimum capital requirement, and lowering total experience to three years, while extending the scheme till next financial year.
“Developers or builders should have a minimum of three years’ experience in undertaking residential projects as against five years prescribed earlier,” an RBI notification said.
The RBI also withdrew the condition of minimum paid-up capital requirement of not less than Rs50 crore for housing finance companies (HFCs) to avail themselves of ECBs.
However, the RBI said the condition of the minimum net owned funds of Rs300 crore (for the HFCs) for the past three financial years was unchanged.
“The aggregate limit for ECB under the low cost affordable housing scheme is extended for 2013-14 and 2014-15 with a ceiling of $1 billion in each of the two years, subject to review thereafter,” it said.
It added that the ECB availed of by developers and builders shall be swapped into rupee for the entire maturity on a fully-hedged basis.
The RBI said that the interest rate spread charged by the National Housing Bank (NHB) may be decided by the NHB, taking into account cost and other relevant factors.
The central bank further said that the HFCs while making applications for ECB should submit a certificate from NHB stating that availment of ECB for financing prospective owners of individual unit is for low cost affordable housing.
HFCs should ensure that the cost of such individual units should not exceed Rs30 lakh, and the loan should not exceed Rs25 lakh; and units financed should have a maximum carpet area of 60 square metres, the RBI added.
A Moneylife analysis of 1,144 companies found out that India Inc’s performance for the fourth quarter of the 2012-2013 fiscal was subdued
Corporate India has had a somewhat mixed fourth quarter results for the 2012-2013 fiscal. Moneylife analysed data of 1,144 companies, and saw that sales, operating profit and net profit were subdued, due to challenging market conditions and macro-economic headwinds. India Inc saw aggregate sales amount to Rs13,30,302.41 crore, up 6% year-on-year (y-o-y), when compared to Rs 12,54,576.28 crore recorded for the March
2012 quarter. Operating profit too crept up 6% y-o-y, from Rs 1,86,287.61 for the March 2012 quarter to Rs 1,97,750.58 for the March 2013 quarter. However, net profit slumped, during the March 2013 quarter, by 3%, to Rs1,11,524.35.
Corporate India’s margins remained more or less flat. Operating profit margins of India Inc, for the March 2013 quarter was 14.87%, marginally better than the 14.85% that it recorded in March 2012. Net profit margins dipped during the March 2013 quarter, from 9.15% to 8.38%. At the outset, these numbers are somewhat subdued, but it isn’t bad considering the dire macro-economic scenario that we have been witnessing since the beginning of the year.