Most Original Idea: Focus on Social Security

Government-backed NBFCs should be set up to persuade weaker sections of society to participate...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
FDI reverses decline in May, rises 5.6% to $2.21 billion

The inflows are likely to remain healthy but there could be some volatility given the global scenario, particularly the European events, said CRISIL chief economist, DK Joshi.

India’s foreign direct investment (FDI) in May this year rose by 5.6% to $2.21 billion, reversing the decline in the previous two months, reports PTI.

The FDI inflows in May 2009 were $2.09 billion. “Quick estimates indicate the foreign fund inflows in May were up by 5.6%,” an official source told PTI.

The inflows in the first two months of FY11 were, however, down by about 1% at $4.39 billion. The FDI in April was $2.21 billion, down 5.1% year-on-year. In March, the inflows had contracted by about 38%.

CRISIL chief economist, DK Joshi, said the inflows are likely to remain healthy but there could be some volatility given the global scenario, particularly the European events. “India remains a strong magnate due to its economic growth,” he said.

The government has been taking measures to streamline the procedures for foreign investors.  The Department of Industrial Policy and Promotion (DIPP) had initiated a concept paper proposing a hike in FDI cap of 26% in the defence sector. Similar papers are expected on sectors like multi-brand retail, agriculture and pharmaceutical, sources said. The FDI for 2009-10 at $25.88 billion was down 5% from $27.33 billion in the previous fiscal.

User

Most banks fix base rate between 7.75%-8.25%

Under the base rate lending mechanism, borrowers will be charged interest rates over the base rate depending on their credit profile. The system, however, will not apply to concessional loans for agriculture, export and other specified sectors.

A host of public sector banks on Wednesday fixed their minimum lending rate in the range of 7.75% to 8.25%, higher than that of market leader State Bank of India (SBI), reports PTI.

The minimum lending rate, or base rate, is what a bank can charge from a customer. The new regime, which will come into play from 1st July, is intended to bring about more transparency in the lending operations of banks.

Till afternoon, as many as 11 public sector banks, including the Bank of Baroda, Oriental Bank of Commerce and the Allahabad Bank had announced their rates.

The new rate will replace the existing benchmark prime lending rate (BPLR) that varies between 11%-13.75%.

While Bank of Baroda, Oriental Bank of Commerce, Allahabad Bank, Bank of India, Indian Bank and IDBI Bank have set their rate at 8%, Syndicate Bank, Dena Bank and Indian Overseas Bank have fixed it at 8.25%.

Taking the lead, India’s largest lender SBI yesterday fixed the base rate at 7.5%.

While private sector lender Dhanalakshmi Bank and DBS Bank India have fixed the rate at 7%, lower than that of SBI, Kerala-based private sector lender Karur Vysya Bank's rate is the highest so far at 8.5%.

Mangalore-based Corporation Bank, State Bank of Mysore and Federal Bank pegged the rate at 7.75%. UCO bank has fixed its rate at 8%.

Under the base rate lending mechanism, borrowers will be charged interest rates over the base rate depending on their credit profile. The system, however, will not apply to concessional loans for agriculture, export and other specified sectors.

The base rate system will be applicable for all new loans and also existing loans that come up for renewal. Existing loans based on the BPLR system may continue till maturity of the existing contract.

However, existing borrowers have the option to switch over to the base rate system before the renewal or expiry of the existing contract without any charges.

User

COMMENTS

sreedhar

7 years ago

In the above artice it is mentioned as "Kerala based Karur Vysya Bank has tendered". Please note that Karur Vysya Bank is not kerala based, it is Tamilnad based.

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)