Companies & Sectors
Suzlon seeks 4-month extension to repay FCCBs worth $220 million

Suzlon said the extension would allow it to close various financing measures and drive alignment between all stakeholders on allocation of cash resources

 
New Delhi: Wind turbine maker Suzlon Energy has sought a four-month extension from bond holders for redeeming foreign currency convertible bonds (FCCBs) worth over $220 million that are due next month, reports PTI.
 
Suzlon said the extension would allow the company to close various financing measures and drive alignment between all stakeholders on allocation of cash resources.
 
"We intend to redeem the outstanding October FCCBs at the end of the proposed four-month extension, subject to requisite approvals," a company spokesperson said in a statement.
 
Suzlon issued $200 million zero coupon convertible bonds and $20.8 million worth convertible bonds having a coupon rate of 7.5%. These are due in October.
 
According to the statement, the meetings of the bond holders are proposed to be held on 10th October.
 
"We are actively working on various sources of funding; including from the sale of non-critical assets, fresh debt, equity-linked and/or equity fund raising through the domestic and international capital markets, and additional secured leverage at an international subsidiaries-level by optimally re-balancing our debt across various assets," it said.
 
The spokesperson said these initiatives would enable the company to optimally allocate resources between business requirements and debt obligations "in a manner that will allow us to obtain relevant approvals from our senior secured lenders".
 
Suzlon's net debt touched Rs11,165 crore at the end of March 2012.
 

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Banks to provide 1% interest sop for home loans till 31st March

The limit of subsidy for an individual borrower would be Rs14,912 for a loan of Rs15 lakh, and Rs9,925 for a loan of Rs10 lakh and the scheme would remain in force till 31st March for loans up to Rs15 lakh only

 
Mumbai: Reserve Bank of India (RBI) has asked banks to provide 1% interest subsidy to home loans of up to Rs15 lakh as announced by the government, reports PTI.
 
The interest subvention scheme has been liberalised with effect from 2011-12 by extending it to housing loans up to Rs15 lakh where the cost of the house does not exceed Rs25 lakh, RBI said in a notification.
 
The scheme has since been extended by Government of India and will remain in force up to 31 March 2013, it said.
 
A Budgetary provision of Rs400 crore has been made under the scheme for the year 2012-13 by Government of India, it said.
 
The Union Cabinet chaired by Prime Minister Manmohan Singh approved the scheme in July.
 
The limit of subsidy for an individual borrower would be Rs14,912 for a loan of Rs15 lakh, and Rs9,925 for a loan of Rs10 lakh. The extended scheme will benefit all housing loans availed in the current financial year.
 
The National Housing Bank is the sole nodal agency for implementation of the scheme for banks, Regional Rural Banks and housing finance companies.
 

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COMMENTS

Sachin M Regundwar

4 years ago

I have availed housing loan in the year 2007. I satisfy all other criteria. Am I eligible to avail this facility?
Sachin

SBI cuts base rate by 0.25% to 9.75% from today

SBI, the largest lender in the country is also the first to cut base rate after RBI's policy announcement and this move would be followed by other banks as well

 
Mumbai: Acting on Reserve Bank of India (RBI)'s cue, country's largest lender State Bank of India (SBI) announced a reduction in the minimum lending rate by 0.25%, giving relief to all types of borrowers, reports PTI.
 
"The cut in base rate was driven largely by the RBI's decision to cut the CRR," Pratip Chaudhuri, Chairman, SBI told PTI.
 
The bank's Asset Liability Committee (Alco) met on Tuesday and decided to cut the base rate to 9.75%.
 
The reduction is effective from 20th September.
 
The decision by the country's largest lender comes a day after the Reserve Bank cut cash reserve ratio (CRR) by 0.25% to 4.5% inducting Rs17,000 crore into the system.
 
SBI is the first to cut base rate after RBI's policy announcement and its rate is among the lowest in the market. Other banks are likely to follow suit and cut lending rates in the coming days.
 
Chaudhuri said the cut will have a "very minor" impact of up to four basis points or 0.04% on its margins.
 
Of the bank's Rs6 lakh crore loan book, up to Rs5 lakh crore is linked to the base rate mechanism, Chaudhuri said.
 
The base rate mechanism came into effect in July 2010 as a new transparent alternative to the earlier benchmark prime lending rate (BPLR). The remaining Rs1 lakh crore is linked to the BPLR, he added.
 
"We have an excess statutory liquidity ratio (SLR) holdings of up to Rs50,000 crore and if the loan demand goes up, we can definitely use that money," Chaudhuri said, sounding confident that the rate cut will prod loan seekers and help the bank achieve its sagging credit growth.
 
Chaudhuri had earlier expressed concerns over the sagging loan demand and cited it as a reason to cut its deposit rates stating deposit growth was outpacing credit growth this fiscal.
 
Reacting to the RBI move, a majority of bankers had said rates would soften from hereon.
 

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