RBI extends deadline for MFI provisioning norms to April 2013

“Taking into account the difficulties faced by MFI sector and the representation received by the bank from them, it has been decided to defer the implementation of asset classification and provisioning norms for NBFC-MFIs to 1 April 2013,” the RBI said in a notification

“Taking into account the difficulties faced by MFI sector and the representation received by the bank from them, it has been decided to defer the implementation of asset classification and provisioning norms for NBFC-MFIs to 1 April 2013,” the RBI said in a notification

New Delhi: The Reserve Bank of India (RBI) has deferred the deadline on implementation of asset classification and provisioning norms for non-banking financial company-micro finance institutions (NBFC-MFIs) to 1 April 2013 from April this year, reports PTI.

“Taking into account the difficulties faced by MFI sector and the representation received by the bank from them, it has been decided to defer the implementation of asset classification and provisioning norms for NBFC-MFIs to 1 April 2013,” the RBI said in a notification.

NBFC-MFIs was introduced as a new category on 2 December 2011, which also contained guidelines on asset classification and provisioning norms to be adhered to by the microfinance institutions (MFIs) with effect from 1 April 2012.

“The NBFC-MFIs are, however, required to comply with the other regulations laid down in December 2011,” it said.

In the second quarter review of monetary policy in November 2010, a sub-committee of the Central Board of the RBI, chaired by YH Malegam, was constituted to study issues and concerns in the MFI sector.

“However, the committee submitted its report in January 2011. Thereafter, the broad framework of regulations recommended by the panel has been accepted by the bank,” RBI had said earlier.

In October 2010, the MFI sector faced problems in which a spate of suicides by borrowers in Andhra Pradesh due to alleged pressure from recovery agents appointed by the MFIs.

The Andhra government then passed a law which gave overarching powers to the state and imposed a slew of measures to control MFIs' activities, including capping their lending rates.

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Bajaj Energy ceases to be subsidiary of Bajaj Hindusthan

Bajaj Hindusthan's stake in Bajaj Energy -- the special purpose vehicle for 450 MW coal fired thermal power project -- has come down to 26.07% from earlier 51%, following further allotment of shares by the SPV

India's largest sugar firm Bajaj Hindusthan said Bajaj Energy, which is setting up five power plants in Uttar Pradesh with a total capacity of 450 MW, has ceased to be its subsidiary.

Bajaj Hindusthan's stake in Bajaj Energy -- the special purpose vehicle for 450 MW coal fired thermal power project -- has come down to 26.07% from earlier 51%, following further allotment of shares by the SPV, according to company's filing to the Bombay Stock Exchange (BSE).
 
In 2010, Bajaj Hindusthan had forayed into power venture. It had announced setting up five coal based power plants, each with 90 MW capacity, in UP adjacent to its 5 sugar plants.

The project cost was estimated to be at Rs2,300 crore.

In the late afternoon, Bajaj Hindusthan was trading at around Rs32.75 per share on the Bombay Stock Exchange, 5.48% up from the previous close.

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Man Infraconstruction secures orders worth Rs113 crore

The orders were from Tata Housing Development Company and Flagship Infrastructure.

Man Infraconstruction has secured work orders aggregating to approximately Rs113 crore for construction of residential towers in Mumbai and Pune. The orders were from Tata Housing Development Company and Flagship Infrastructure.

Man Infraconstruction is a leading construction company in India that has executed construction work for some of the most significant port projects. It has several other prestigious projects in the residential, commercial and industrial space as well.

In the late afternoon, Man Infraconstruction was trading at around Rs166 per share on the Bombay Stock Exchange, 1.78% up from the previous close.

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