Page 17 - Banking Finance September 2020

ROUNDUP

virtual road shows at three ports the role of refinancing. All NBFCS, ir- in the prior year, according to the fi-
ahead of the launch of a direct cargo respective of their size and credit rat- nance ministry's estimates.
ferry service from Thoothukudi via ing (even unrated), should be eligible It is a bit more modest than some op-
Kochi to Maldives. to get funds, the FIDC said. timistic estimates that the Fifteenth
M Beena, Chairperson, Cochin Port Trust, The key balance sheet parameters Finance Commission has received from
who was the chief guest, said the cargo such as capital adequacy ratio, non- experts, the Commission's chairman,
service has received a very good re- performing assets (NPAS), track record NK Singh, said in an interview, citing a
sponse from the trading community in along with promoters' experience and presentation made by the finance
Kerala especially from Malabar region. understanding of the market, should ministry's chief economic adviser,
The freight from Beypore and be the important consideration for Krishnamurthy Subramanian.
Azheekal ports is expected to reach extending financial support to NBFCS. "We had to make projections about the
Kochi by road and by sea to Mali. In It said bank lending to NBFCS for on- rebound from a very low base year.
addition, large-scale exporters from lending to priority sector to be treated The chief economic adviser said in a
ports such as Kandla on the west coast as priority sector lending for banks. presentation that it could go as high as
to Mali via Kochi are expected. 19%, while some even said it could be
There is a need to carve out a space
India accounts for only 9.7 per cent of for small and mid-sized NBFCS within 21% as an extreme case, and others
the Maldives's total imports, so there the sectoral cap in bank lending. While said it could be more modest," said
is huge opportunity for Indian traders, NBFCS account for 20 per cent of total Singh.
she said. credit in the economy, most banks
have capped the exposure to the sec- Timeline 21 months, Tata
Shadow banks seek spe- tor (NBFCS) at 8-9 per cent. projects to build new par-
cial fund for 3-5 yr loans
Non-banking financial companies India Inc raises record Rs. liament
Tata Projects Limited won the bid to
(NBFCS) want the government to set 4-lakh cr via bonds
up a dedicated fund through which construct the new Parliament building
Corporates have mopped up a record - a part of the Central Vista redevel-
they can get loans with tenures of
Rs. 4-lakh crore from the bond market opment project.
three to five years, as it will help the
between April and September 17. This
cash-strapped sector maintain a An official of the Ministry of Housing
is the highest amount raised via rupee
healthy asset-liability match. and Urban Affairs said Tata Projects
bonds in the beginning of the year
In a representation to Union Finance since 2015, according to Bloomberg Ltd had submitted a bid of Rs 861.90
Minister Nirmala Sitharaman, the Fi- data. crore. According to the Central Public
nance Industry Development Council Works Department (CPWD), the con-
(FIDC) said the average tenure of loans Covid-hit corporates rushed to raise struction cost was estimated at Rs 889
extended to the majority of customers funds from the bond market as risk crore. Larsen and Toubro (L&T) submit-
(individuals and MSMES) is 24-48 averse banks refused to lend fearing ted a bid of Rs 865 crore.
months. However, funding under the default. The unprecedented lockdown According to the original plan, the new
partial credit guarantee scheme, spe- and subsequent hit on the economy building was to be ready by 2022, to
cial liquidity scheme, and the refinanc- has taken a heavy toll on India Inc. coincide with 75 years of Indepen-
ing being done by Sidbi are for a short dence. The construction is expected to
tenure of six months to 18 months. Nominal GDP to grow at take about 21 months.
The tenure of refinancing should be 19% in FY22: Govt The Central Vista redevelopment
increased to at least 36 months for a India's economy is likely to rebound project envisages a triangular Parlia-
healthy asset-liability profile, said the 19% in the next fiscal without adjust- ment building, a common central sec-
lobby group for NBFCS. ing for inflation after recording what retariat and revamping of the 3-km-
The all-india financial institutions - economists estimate will be the deep- long Rajpath, from Rashtrapati Bhavan
Sidbi and Nabard - may be assigned est contraction in the country's history to India Gate. R

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