RBI said ECB refinancing, which was so far restricted to only foreign lenders, will now be permitted for Indian banks as well.
Retail lending is more compliant now as rating agencies are covering retail: Romesh Sobti, IndusInd
Both these companies have to raise the money in the next 10 days.
On November 22, President Ram Nath Kovind gave his assent to a new section in the IBC.
A bankruptcy framework covering all financial institutions, too, likely to be part of the proposed bill.
Lenders led by SBI have lent close to Rs 9,000 cr to Reliance Naval and Engineering, the erstwhile Pipavav Defence which was acquired by Reliance Infra in 2015.
Corporate balance sheet fundamentals are improving as real interest rates will drop below the real GDP in India, companies have deleveraged with free cash on their books and credit ratings have improved.
India’s exports have fallen despite a favourable global trade environment which is expected to rise to 3.6% in 2017 from 3.2% in 2016.
Goldman Sachs expects the Rs 2.11 lakh crore bank recapitalisation, announced last month, to boost credit supply and lower borrowing costs as healthier public sector banks push lending.
Trade creditors, primarily small firms, and vendors could also be affected.
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