PFC to raise Rs5,000 crore via tax-free bond

PFC has set a target for borrowing Rs30,000 crore during the current financial year

Power Finance Corporation (PFC) may raise Rs5,000 crore this fiscal through a tax-free bond issue, an instrument that would help the company raise cheaper loans.

PFC which is engaged in financing power generation and transmission projects would be able to borrow at a lower cost.

The Ministry of Finance’s approval for the issuance of these bonds can be expected in a day or two. “We are awaiting the Ministry of Finance’s nod to allow PFC to raise Rs5,000 crore through tax-free bonds in the current fiscal,” a senior Power Ministry official said, adding that the approval can be expected in a day or two.

PFC has set a target for borrowing Rs30,000 crore during the current financial year (2011-12). “The cost of financing has gone up... These (tax-free) bonds would bring down the borrowing cost for PFC and it is a good way to tap new sources of finance,” KPMG executive director Arvind Mahajan told PTI.

The Power Ministry is of the view that it may bring down the borrowing cost for the company by about 1.5%. For example, if the company was borrowing at an interest rate of 8.5%, it would be able to get that loan at 7% interest.

However, analysts think the impact may be more substantial, i.e. it can be more than 1.5%.

Last year, PFC was given the status of an infrastructure finance company—a move that enabled the entity to mop up funds by issuing tax-free infrastructure bonds.

PFC came out with a follow—on public offer last month and raked in over Rs3,400 crore. The government holds about an 84% stake in PFC.

PFC will utilise the proceeds of the FPO for meeting its lending and disbursement targets this fiscal (2011-12).

Meanwhile, National Highways Authority of India (NHAI) also plans to raise Rs10,000 crore through tax-free bonds to fund its road projects, this fiscal.

Finance Minister Pranab Mukherjee in his Budget 2011-12 had said that the government would allow NHAI to raise funds to the tune of Rs10,000 crore through tax-free bonds in 2011-12. It would raise the fund in two tranches of around Rs5,000 crore each.

On Tuesday, PFC ended 2.33% down at Rs180.10 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.43% to 18,492.45.

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Axis Bank launches e-Wallet Card

The e-Wallet Card is an electronic payment service offered free of cost by Axis Bank to its customers

Axis Bank has launched the ‘e-Wallet Card’, an innovative solution for online payments. The e-Wallet Card is an electronic payment service offered free of cost by the Bank to its customers, which works like any credit or debit card for making online payments.

The e-Wallet Card can be created using Axis Bank’s Internet Banking and can be used for making payments on all websites that accept Visa cards. To generate an e-Wallet Card all consumers need to do is log on to the Bank’s Internet Banking portal, select the e-Wallet Card option under the Cards menu, select the source account from which the funds would be debited and follow the instructions that appear thereafter. In case of emergency the e-Wallet Card can also be shared with relatives & friends.   The e-Wallet Card can be created for making e-payments and each card can be used only once, thus ensuring the safety of the user’s account. An additional layer of security in terms of Verified-by-Visa (VBV) is added to further safeguard the account. The minimum limit for the card is Rs10 and maximum is Rs50,000. The validity period of the card is 48 hours. In case of partial usage or zero usage, the un-utilised amount will be credited back to the user bank account in four days.

On Tuesday, Axis Bank ended 0.24% down at Rs1,301.45 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.43% to 18,492.45.

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IndusInd Bank signs MoU with Indian Army for banking services

The MoU aims at simplifying the salary disbursement procedure and to deliver modern banking facilities of IndusInd Bank to the Indian Army

IndusInd Bank and the Indian Army have signed a memorandum of understanding (MoU) for issuing salary accounts to personnel of all ranks of the Indian Army.

The MoU aims at simplifying the salary disbursement procedure and to deliver modern banking facilities of IndusInd Bank to the brave soldiers of the Indian Army.

The specially designed salary account is tailor-made to provide comfort and convenience in daily transactions, easy access through a wide range of channels and attractive propositions on loans and investments, including investment advisory services for the armed forces. 

Some of the exclusive services that the Bank would be providing to the Indian Army personnel include Free ‘anywhere banking’; unique Indus money monthly auto cash back program that rewards  banking transactions; free demand draft up to Rs25,000 per day; free Inward foreign remittance facility. For all senior army officers the bank would provide ‘Platinum Debit Card’; 5X Indus Money Rewards Program; 30% discount on Green Fees at 300 golf clubs around the world and complimentary air accident insurance of Rs30 lakh.

For all the PBORs (personnel below officer ranks) the Bank will issue ‘Gold Debit Card’. This debit card will have higher purchase limit of Rs1 lakh & ATM withdrawal limit of Rs50,000 daily. Other benefits include Indus money-monthly auto cash-back virtually on all your banking transactions; air accidental insurance to the tune of Rs5 lakh; lost card liability to the tune of Rs1 lakh; purchase protection to the tune of Rs50,000 and waiver up to Rs125 per month on fuel surcharge.  On Tuesday, IndusInd Bank ended 0.76% up at Rs270.72 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.43% to 18,492.45.

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