The Reserve Bank has tightened the norms for sanction of bridge loan and interim finance by commercial banks and financial institutions to companies against public issues and market borrowings. According to a circular issued by the RBI recently, banks and FIs can collectively sanction a bridge loan to the extent of only up to 75 per cent of the amount called upon on the issue. Earlier, there were no limits on FIs while banks were allowed to lend up to 50 per cent. FIs had even gone up to the extent of providing up to 100 per cent in select cases.

Germans reject Sandvik proposal

The Sandvik AB-Krupp-Widia merger may fall through. Last week, the German Federal Cartel Office which vetted the proposal, did not approve of the merger. This leaves Sandvik AB of Sweden with an option to appeal against the verdict in a higher German court. However, according to reliable sources, Sandvik AB has not yet decided on the appeal. It may also be possible for Sandvik AB to reframe the merger application in a different manner which may elicit the approval of the cartel office.

Gulf lifts ban on Indian ships

The Gulf countries have lifted the ban on entry of ships from India, according to shipping industry sources. Following this, shipping agents have started accepting cargo for Gulf destinations. According to operators of feeder services, they have not received any official communication from the port authorities in the Gulf. They have been informed about the restrictions being removed by their agents in the Gulf. The Gulf countries imposed a ban on entry of ships from India following the outbreak of plague in Surat.

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