The Hindu Business Line : `Allow cos to retire high cost debts'

THE Reserve Bank of India should issue instructions to banks and financial institutions (FIs) to allow corporates to retire their high cost borrowings with minimal charges. This process will not only reduce interest burden on the industry but also increase the liquidity of banks and FIs which in turn shall enable the banks to reduce their non-performing assets (NPAs), feels PHD Chamber of Commerce and Industry (PHDCCI).

PHDCCI has also suggested that no premium be demanded from the borrower so that competitiveness of industry is not adversely affected in the global context.

In the last five years many corporates have raised high cost term loans from banks/FIs and since interest rates have softened, corporates are keen to prepay such costly loans, but are faced with a problem of banks/FIs charging them high prepayment charges.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Charges for 'excessive' use of ATM — ICICI Bank ordered to compensate customer

Rupee sheds gains; securities rise

IOB chief raises growth target

SBH changes helpline number

BoB unlikely to hike rates for now

Union Bank chief sees no reason for rate hike

UTI Bank may sell BPL's Pune property to recover dues

`Allow cos to retire high cost debts'

Loan mela a big draw

Centurion, Bank of Punjab agree to merge

Rs 700-cr NCDC aid for co-ops in TN

Ramakant Nayak is new LVB chief

Executive Directors of Dena Bank, BoB

Prepaid cards set to displace TCs