Financial Daily from THE HINDU group of publications
Wednesday, May 11, 2005
Financial Daily from THE HINDU group of publications Wednesday, May 11, 2005 |
|
|
|
|
|
Money & Banking
-
Foreign Banks To meet RBI requirements — Bank of America to hike capital by $175 m Our Bureau
Mumbai , May 10 BANK of America has committed additional capital of $175 million (around Rs 767 crore) into its India operations, said a press release from the bank. Out of this, $150 million (Rs 657 crore) will be Tier I capital, which the bank has already brought in. The remaining $25 million (approximately Rs 110 crore) will be Tier II capital. The additional capital inflow is to meet the requirements of Reserve Bank of India on single and group borrower exposure limits. It will also help the bank to maintain and grow its balance sheet. Mr Vishwavir Ahuja, Managing Director and country head, Bank of America said, "In the past RBI did give some waiver on norms regarding borrower limits. But now they will strictly implement the norms. With this additional infusion, we can adjust our capital requirements, take care of our existing balance sheet and also provide for growth." The bank is planning to grow its business in India further with existing clients and add new clients, he added. However, there are no plans to increase the number of branches. Mr Ahuja said, "Based on the capital we can add branches. But as per our business model we don't need more branches." The bank has good working relationship with several leading players in syndicated transactions and on the distribution side and has no immediate plans for any formal business tie-ups, he added.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|