1. Canada’s largest public pension fund, Caisse de Depot et Placement du Quebec (CDPQ), is eyeing investments in the booming Indian real estate sector, with plans to invest up to $1.7 billion (US dollars) over the next five years.
2. The forex reserves increased by $4.068 billion to touch $266.518 billion for the week ended November 2, 2007, according to the Reserve Bank of India’s Weekly Statistical Supplement.
3. The excess supply of funds is expected to continue, despite the recent measures announced by the Reserve Bank of India to mop up the surplus, say analysts and bank treasury managers, even after the 50 basis points hike in cash reserve ratio.
4. Public sector entities are expected to swamp the domestic financial markets with bonds worth Rs 9,000 crore over the next four months.Public sector banks (PSBs) alone are expected to raise Rs 5,500 crore during the period. Banks in the fray to raise resources through bonds include Bank of India, State Bank of India, Union Bank of India, Vijaya Bank, UCO Bank and Dena Bank. In addition, transmission utility, PowerGrid Corporation of India Ltd, is expected to raise Rs 3,300 crore during the current financial year. Banks are raising the resources to beef up their respective Tier II capital, for propelling their asset growth and partly for offsetting the impact on capital standards after migrating to Basel II next financial year.
5.LIC Housing Finance may look at the possibility of issuing equity shares through preferential allotment to promoters or investors. This is in addition to the option of issuing equity shares on Qualified Institutional Placement basis.
6. The Reserve Bank of India has further relaxed the remittance limit to $300,000 from $100,000 to importers of rough diamonds provided import bills and documents are directly procured from overseas suppliers.
7. The Government has elevated seven General Managers from various public sector banks to the post of Executive directors, filling up top level vacancies in certain banks.
8. The Reserve Bank of India has constituted an Internal Working Group under the Chairmanship of Mr V.S. Das, Executive Director, Reserve Bank of India, in order to examine the recommendations of the Radhakrishna Expert Group on Agricultural Indebtedness. The report submitted by the committee addresses issues relating to creation of credit absorption capacities, need for risk mitigation practices, introduction of cyclical credit system, dispute resolution mechanisms and setting up of a debt redemption fund.
9. Appreciation of rupee against the dollar has thrown a new M&A opportunity for India Inc, which wants to reach out to the world by acquiring concerns on a global scale, according to the industry chamber, Assocham.
10. The Reserve Bank of India has advised banks to ensure that promoters of projects bring in their equity capital before the debt is advanced. RBI has also asked banks also to ensure that the stipulated debt equity ratio is maintained throughout the life of the debt.
In a circular to banks, the central bank said normally, the promoters either bring their entire contribution upfront before the bank starts disbursing its commitment, or they bring certain percentage of their equity (40–50 per cent) upfront while the balance is brought in stages.
In a circular to banks, the central bank said normally, the promoters either bring their entire contribution upfront before the bank starts disbursing its commitment, or they bring certain percentage of their equity (40–50 per cent) upfront while the balance is brought in stages.
