Corporate debts over Rs 20 cr can be recast
The Reserve Bank of India today issued detailed guidelines to commercial banks on corporate debt restructuring (CDR). As per the guidelines, corporate debts above Rs 20 crore, in cases relating to those outside BIFR and Debt Recovery Tribunal (DRT), would be eligible for restructuring. According to a circular issued to commercial banks (excluding regional rural banks and local area banks), all standard and sub-standard accounts subjected to CDR process would be eligible for fresh financing by the lenders as per their normal policy parameters and eligibility criteria.
Lenders' package for Dabhol likely
A Consortium of Indian financial institutions and top commercial banks will work out a package within a fortnight to resolve the crisis arising out of the Dabhol Power Company's decision to pull out of the project. At a meeting on Thursday with the Finance Secretary, Mr. Ajit Kumar, and the Power Secretary, Mr. A.K. Basu, the institutional lenders were told to work out a package within two weeks. The institutions and commercial banks have an exposure of close to $ 1.5 billion in DPC. These include the IDBI, ICICI, IFCI, State Bank of India and Canara Bank.
Private MFs garner chunk of July funds
Private sector mutual funds, particularly foreign-owned, have turned out to be large funds mobilisers as reflected in the monthly collection figures for July 2001. The UTI's US-64 fiasco is telling on the funds mobilisation by public sector mutual funds. An important factor that stands out as per the latest statistics is that almost all the savings collected by mutual funds are channelled through the short-term income, liquid and gilt (Gsecurities) funds.
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