NEWS & ADVICE : PERSONAL LOAN
IDBI Bank to seek refinance from SIDBI
By Vaibhav Aggarwal
Nov 25, 2010
Print    Email    RSS   

Public sector lender, IDBI Bank will be seeking refinance provided by Small Industries Development Bank of India (SIDBI). The bank is planning to seek refinance worth Rs 2000 crore by March 2011.

"Instead of borrowing in market at higher rate (the liquidity crunch has pushed rate for short-term funds), it makes sense to tap refinance facility against the existing loan portfolio," said P Sitaram, chief financial officer of IDBI Bank.

Recourse to refinance is not under cash reserve ratio (CRR) and statutory liquidity ratio (SLR) norms and it also helps in balancing asset liability mismatch. Sitaram also said that since IDBI was converted into a bank only six years back, it has a low share of CASA ratio thereby causing frequent asset liability mismatch.

The bank is planning to increase its CASA ratio to 20% by March next year. Most of the commercial banks have CASA ratio nearing 30%.

Sidbi and NHB, Nabard and EXIM Bank operate refinance window.


 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Carnival of Indian Personal Finance Blogs #6
Now, Do Banking on Social Media Sites
BPLR or Base rate?? Which is better…?
Is the Base Rate system really transparent?
Personal loan: Lender of the last resort


HOTEL: CaℒL Giℛℒs In Kharar 09855660911...
Model Escoℛts Service In Pune 8888IOO484 Caℓℓ...
What is the outstanding Amount for my personal loan

NEWS THIS WEEK
LVB bank joined hands with NCML Feb 18, 2015
Syndicate Bank hiring 5000 new staff Feb 12, 2015
SBI donated Rs 8.6 cr as a part of CSR activity Feb 11, 2015
Canara Bank tied up with NHBC Feb 9, 2015
Hiring for Probationary clerks in South Indian Bank Feb 5, 2015
News Archive