Financial Daily from THE HINDU group of publications
Saturday, May 08, 2004
Financial Daily from THE HINDU group of publications Saturday, May 08, 2004 |
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Money & Banking
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Overseas Borrowings HDFC to seek nod for external borrowings Our Bureau
Mumbai , May 7 HOUSING Development Finance Corporation (HDFC) will move an enabling resolution at its upcoming annual general meeting (AGM) seeking shareholder permission for making external commercial borrowings (ECB) . The company's AGM is usually held a few months after the announcement of its yearly results. "We have not got permission for this from the RBI and we are just going to seek an enabling resolution so that when we need fresh funds some months later, we do not have to call an extraordinary general meeting for it," said Mr Deepak Parekh, Chairman, HDFC. HDFC borrowed aggressively at lower rates last year to maintain its spread of around two per cent, he said. The company raised Rs 7,147 crore from commercial banks last year, Rs 4,173 crore of which was under the priority sector category of the banks. Refinance of Rs 350 crore was obtained from National Housing Bank.
Citing the recent rise in long-term rates in the US and the UK, Mr Parekh hinted that interest rates are unlikely to go down further. . "If rates have to go down further, savings instruments issued by governments, such as post office and other savings accounts, must go down. But there is a reluctance on the government's part to do this," he opined.
More Stories on : Overseas Borrowings | Housing Finance
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