Money & Banking
JBIC extends Rs275 crore credit to ICICI Bank for Japanese imports

Under the credit line, medium and long-term credit will be provided through the ICICI Bank to Indian importers purchasing renewable energy equipment manufactured in Japan

 

Mumbai: The Japan Bank for International Cooperation (JBIC) on Monday said it has entered into an agreement with ICICI Bank to extend a credit of over Rs275 crore or about $50 million to finance renewable energy product imports from the Far East nation, reports PTI.

"This will be the first credit line to be offered by JBIC that specialises in supporting export of renewable energy-related equipment," the Mumbai-based bank said in a statement.

The credit facility will be operational for two years, the JBIC country representative Shin Oya told PTI over phone, adding, however, importers will get a longer repayment period of up to 18 years.

The $50 million or around Rs275 crore credit line will be co-financed, with JBIC taking a $30 million share and the rest by the Japanese private financial institutions, it said.

Under the credit line, medium and long-term credit will be provided through the ICICI Bank to Indian importers purchasing renewable energy equipment manufactured in Japan.

The Japanese financial institutions, including JBIC, will extend the credit line to ICICI Bank which will on-lend to Indian importers of the above mentioned products.

The equipment may include products based on solar power, solar thermal energy, wind energy and geothermal energy, the statement said.

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Srei BNP Paribas raises lending rates by 25 bps

Earlier, the company, a joint venture between Srei Infra and the French lender BNP Paribas, had last increased its lending rates by 1% in November 2011

 

Mumbai: Infrastructure and construction equipment financing company Srei BNP Paribas on Monday raised its benchmark rate by 0.25% to 17.25% following a rise in borrowing cost, reports PTI.

The company was hopeful of a cut in interest rate by the Reserve Bank of India (RBI) in its recent policy announcement and decided to raise the rate as the apex bank decided to pause, its chief executive DK Vyas said in a statement.

One basis point is 0.01 percentage point.

The company had "decided to wait and look for a trend of increase in the borrowing cost before it decided to pass on the incremental borrowing cost to its customers to maintain a healthy margin", he added.

The company, a joint venture between NBFC Srei and the French lender BNP Paribas, had last increased its BPLR by 1% in November 2011, the statement said.

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CRISIL sees Rupee regaining 50 level by March

The Indian currency will appreciate to touch the 50 level by next March provided certain measures are taken by the government urgently, the ratings agency said

 

Mumbai: Rating agency CRISIL on Monday said it expects the Indian rupee, which has been at the receiving end for quite some time and hit an all-time low of 57.32 to the dollar recently, will regain the 50 level by March-end subject to the government taking measures to revive growth, reports PTI.

The domestic currency will appreciate to touch the 50 level by next March provided certain measures are taken by the government urgently, the rating agency's research wing said in a note.

Measures like initiation of some policy measures to revive the sagging growth, no further worsening of growth and inflation and an easing of current account deficit due to softening of crude and commodity prices will help in the revival of the currency, the report said.

The note gave a chance of two in three for the rupee to appreciate to 50 levels to the dollar by the fiscal-end if there is improvement in the sentiment. Whereas, there is a one-third possibility of the rupee continuing to trade in the 55-57 range in case of a status quo in domestic policy setting, and no change in the Eurozone problems and the ongoing global turbulence.

The rupee has lost over 27% since last August to earn itself the distinction of being the worst performing currency in Asia due to various factors like worsening of the current account deficit and dwindling capital inflows because of investor doubts.

During early trade today it gained 6 paise to the dollar and was trading at 55.55. The recent downfall has seen it touch an all-time low of Rs 57.32 to the dollar intra-day and a closing low of 57.14 on 22nd June.

CRISIL said the recent fall in the rupee is characterised by higher impact of the country's rising vulnerability and relatively lower impact of external shocks.

The vulnerability arises from several factors like widening current account deficit, which touched a two-decade high of 4.2% last fiscal, declining import cover of foreign exchange reserves, a high private corporate debt servicing burden and slower growth, it said.

The shock element is much lesser as there are no events like the folding up of Lehman Brothers in 2008, in the US which are on the horizon, it said.

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