Mumbai: Japanese electronics and electrical equipments manufacturer, Mitsubishi Electric is planning to invest about Rs 300 crore by 2016. The investment would be mainly for equity infusion and capital expenditure, a company senior official told Business Line.
The official said that out of the total investment about Rs 80 crore would be invested in Chennai for manufacturing elevators and another Rs 100 crore for making air-conditioning equipment. The site for the air-conditioning unit has not been decided but it would be in North India.
Success in my Habit
Sunday, September 29, 2013
Luxury retail space in India to rise to 1.44% by 2015: Cushman & Wakefield
Mumbai: Global real estate consultants, Cushman & Wakefield has estimated that the share of luxury retail space in India will be a modest 1.44% by 2015 as against the current 1% even as total retail malls stock is set to increase by 27% by 2015.
The report released on Thursday highlights the changing luxury retail scenario in India. It said that of the total current operational mall space in the organized retail sector across the top seven cities of India is estimated at 66 million sq. ft. of which luxury retail space is only 770,000 sq. ft.
The relative reach of luxury brands present in the malls of top seven cities in India is the highest in NCR at 38%, followed by 21% in Mumbai and 17% in Bengaluru.
"NCR and Mumbai have been favoured destinations for luxury retailers as they have marked the evolution of mall culture in the country. However, lately luxury retailers have started focusing on Bengaluru as the next upcoming destination with its development as an IT Hub and higher disposable income," it said.
Meanwhile, cities like Pune, Chennai and Hyderabad are yet to gain traction from luxury retailers in malls as they have relatively low luxury brand reach and are yet to catch up with the mall culture to the extent witnessed in NCR, Mumbai and Bengaluru. A similar trend was observed while analyzing penetration of luxury retailers in each of these cities.
On the other hand, the reach of luxury brands in the prominent main streets of the top seven cities in the country was led by Mumbai and NCR each having 30% reach, followed by Hyderabad with 16% reach. Hyderabad emerged as an exception in wake of low vacancy and limited mall supply in the city, thus resulting in increased presence of luxury retailers on its main street.
The report released on Thursday highlights the changing luxury retail scenario in India. It said that of the total current operational mall space in the organized retail sector across the top seven cities of India is estimated at 66 million sq. ft. of which luxury retail space is only 770,000 sq. ft.
The relative reach of luxury brands present in the malls of top seven cities in India is the highest in NCR at 38%, followed by 21% in Mumbai and 17% in Bengaluru.
"NCR and Mumbai have been favoured destinations for luxury retailers as they have marked the evolution of mall culture in the country. However, lately luxury retailers have started focusing on Bengaluru as the next upcoming destination with its development as an IT Hub and higher disposable income," it said.
Meanwhile, cities like Pune, Chennai and Hyderabad are yet to gain traction from luxury retailers in malls as they have relatively low luxury brand reach and are yet to catch up with the mall culture to the extent witnessed in NCR, Mumbai and Bengaluru. A similar trend was observed while analyzing penetration of luxury retailers in each of these cities.
On the other hand, the reach of luxury brands in the prominent main streets of the top seven cities in the country was led by Mumbai and NCR each having 30% reach, followed by Hyderabad with 16% reach. Hyderabad emerged as an exception in wake of low vacancy and limited mall supply in the city, thus resulting in increased presence of luxury retailers on its main street.
Luxury retail space in India to rise to 1.44% by 2015: Cushman & Wakefield
Mumbai: Global real estate consultants, Cushman & Wakefield has estimated that the share of luxury retail space in India will be a modest 1.44% by 2015 as against the current 1% even as total retail malls stock is set to increase by 27% by 2015.
The report released on Thursday highlights the changing luxury retail scenario in India. It said that of the total current operational mall space in the organized retail sector across the top seven cities of India is estimated at 66 million sq. ft. of which luxury retail space is only 770,000 sq. ft.
The relative reach of luxury brands present in the malls of top seven cities in India is the highest in NCR at 38%, followed by 21% in Mumbai and 17% in Bengaluru.
"NCR and Mumbai have been favoured destinations for luxury retailers as they have marked the evolution of mall culture in the country. However, lately luxury retailers have started focusing on Bengaluru as the next upcoming destination with its development as an IT Hub and higher disposable income," it said.
Meanwhile, cities like Pune, Chennai and Hyderabad are yet to gain traction from luxury retailers in malls as they have relatively low luxury brand reach and are yet to catch up with the mall culture to the extent witnessed in NCR, Mumbai and Bengaluru. A similar trend was observed while analyzing penetration of luxury retailers in each of these cities.
On the other hand, the reach of luxury brands in the prominent main streets of the top seven cities in the country was led by Mumbai and NCR each having 30% reach, followed by Hyderabad with 16% reach. Hyderabad emerged as an exception in wake of low vacancy and limited mall supply in the city, thus resulting in increased presence of luxury retailers on its main street.
The report released on Thursday highlights the changing luxury retail scenario in India. It said that of the total current operational mall space in the organized retail sector across the top seven cities of India is estimated at 66 million sq. ft. of which luxury retail space is only 770,000 sq. ft.
The relative reach of luxury brands present in the malls of top seven cities in India is the highest in NCR at 38%, followed by 21% in Mumbai and 17% in Bengaluru.
"NCR and Mumbai have been favoured destinations for luxury retailers as they have marked the evolution of mall culture in the country. However, lately luxury retailers have started focusing on Bengaluru as the next upcoming destination with its development as an IT Hub and higher disposable income," it said.
Meanwhile, cities like Pune, Chennai and Hyderabad are yet to gain traction from luxury retailers in malls as they have relatively low luxury brand reach and are yet to catch up with the mall culture to the extent witnessed in NCR, Mumbai and Bengaluru. A similar trend was observed while analyzing penetration of luxury retailers in each of these cities.
On the other hand, the reach of luxury brands in the prominent main streets of the top seven cities in the country was led by Mumbai and NCR each having 30% reach, followed by Hyderabad with 16% reach. Hyderabad emerged as an exception in wake of low vacancy and limited mall supply in the city, thus resulting in increased presence of luxury retailers on its main street.
Six airports to get Rs 4k-cr private investment
new Delhi: Airports at Chennai, Lucknow, Kolkata, Ahmedabad, Guwahati and Jaipur, identified for privatisation in the current financial year, are likely to see fresh investments of Rs 4,250 crore from selected private concessionaires.
According to the qualification documents issued recently by the ministry of civil aviation, private players awarded the contracts for operations, management and development in this second phase of airport privatisation programme would have to make estimated investments in the range of Rs 500-1,200 crore for development and upgrade works at each of these airports. The ministry has shared initial cost estimates and the scope of development works required to be carried out by the concessionaire at each facility. Actual costs, however, can be shared by qualified bidders at the RFP (request for proposal) stage.
The private concessionaire will have to invest Rs 1,200 crore and Rs 500 crore for upgrading the Chennai and the Lucknow airports, respectively. The investments at Chennai include resources required for constructing a new domestic terminal, a parallel taxi track, re-carpeting the main runway, modification of old international terminal building, connectivity of metro rail, construction of common user cargo terminal and multi-level car park. The investment will have to be made in three-four years.
The concessionaire would have to re-carpet the runway, expand the terminal building, relocate the car park, construct cargo terminal, three additional hangars, boundary wall, perimeter road, new fire station, CISF barracks and administrative block at Lucknow. The bidders shortlisted for the privatisation of the Lucknow airport will be announced on
October 28. As many as 11 companies, including Infrastructure Leasing and Finance Services, Essar Infrastructure, Tata Projects, Tata Realty and Infrastructure, GMR Group and Anil Ambani’s Reliance Group evinced interest in bidding for the privatisation programme of the Chennai and Lucknow airports last week. At Kolkata airport, the private concessionaire would have to make investments of Rs 700 crore among others for extension of air-side corridor to cater to additional aerobridges and modification of old domestic terminal building, strengthening the main runway, metro connectivity, including covered link till the terminal buildings, construction of domestic cargo terminal. The private parties would have to invest Rs 700 crore at Ahmedabad, Rs 550 crore at Jaipur and Rs 600 crore at Guwahati for development and upgrade works, including expansion, upgrade or construction of new passenger terminals.
The government is working with a tight schedule awarding these projects before the end of the current financial year, based on a deadline set by the Prime Minister's Office. To address concerns that privatisation of the six old airports might result in higher charges for passengers, the tariff to be levied after privatisation would be determined before awarding the projects. A price increase would be linked to the wholesale price index to ensure certainty regarding charges even after the private concessionaire takes over operations.
According to the qualification documents issued recently by the ministry of civil aviation, private players awarded the contracts for operations, management and development in this second phase of airport privatisation programme would have to make estimated investments in the range of Rs 500-1,200 crore for development and upgrade works at each of these airports. The ministry has shared initial cost estimates and the scope of development works required to be carried out by the concessionaire at each facility. Actual costs, however, can be shared by qualified bidders at the RFP (request for proposal) stage.
The private concessionaire will have to invest Rs 1,200 crore and Rs 500 crore for upgrading the Chennai and the Lucknow airports, respectively. The investments at Chennai include resources required for constructing a new domestic terminal, a parallel taxi track, re-carpeting the main runway, modification of old international terminal building, connectivity of metro rail, construction of common user cargo terminal and multi-level car park. The investment will have to be made in three-four years.
The concessionaire would have to re-carpet the runway, expand the terminal building, relocate the car park, construct cargo terminal, three additional hangars, boundary wall, perimeter road, new fire station, CISF barracks and administrative block at Lucknow. The bidders shortlisted for the privatisation of the Lucknow airport will be announced on
October 28. As many as 11 companies, including Infrastructure Leasing and Finance Services, Essar Infrastructure, Tata Projects, Tata Realty and Infrastructure, GMR Group and Anil Ambani’s Reliance Group evinced interest in bidding for the privatisation programme of the Chennai and Lucknow airports last week. At Kolkata airport, the private concessionaire would have to make investments of Rs 700 crore among others for extension of air-side corridor to cater to additional aerobridges and modification of old domestic terminal building, strengthening the main runway, metro connectivity, including covered link till the terminal buildings, construction of domestic cargo terminal. The private parties would have to invest Rs 700 crore at Ahmedabad, Rs 550 crore at Jaipur and Rs 600 crore at Guwahati for development and upgrade works, including expansion, upgrade or construction of new passenger terminals.
The government is working with a tight schedule awarding these projects before the end of the current financial year, based on a deadline set by the Prime Minister's Office. To address concerns that privatisation of the six old airports might result in higher charges for passengers, the tariff to be levied after privatisation would be determined before awarding the projects. A price increase would be linked to the wholesale price index to ensure certainty regarding charges even after the private concessionaire takes over operations.
Indian Railways’ DLW produces world’s first ever 5500 HP locomotive as a pilot project
Year 2014 - A Glory of ‘Golden Jubilee’ Year for Diesel Locomotives Works
New Delhi: In continuing with its technological upgradation programme, Indian Railways has produced the prototype 5500 HP diesel locomotives (WDG5) which are already running as a pilot project in North Central Railway. This Loco is developed by Diesel Locomotive Works (DLW), Varanasi, a production unit of Indian Railways. This is so because no locomotive manufacturer in the entire world has attempted more than 4000 HP on 22 tonne axle load and also because of the smaller moving dimension of locomotive as compared to USA and Canada. The 5500 HP WDG5 is primarily aimed at improving the throughput with higher balancing speeds. The locomotive will be able to achieve 100 Kmph speed on level track with higher axle load. WDG5 brings to Indian Railways advanced technologies such as Electronic Fuel Injection (for higher fuel efficiency and emission control). DLW’s locomotive designs implement collision protection, provision for heating, ventilation and air conditioning, task lighting, improved visibility, ergonomic seating and a soothing and aesthetic visual TFT based display (similar to that used in aircrafts), thereby setting up new standards for crew comport and safety. Today DLW is able to manufacture locomotives with a wide horsepower range, from 1400 HP to 5500 HP for multiple track gauges. Thus, besides meeting the needs of non-railway customers in India, DLW is exporting locomotives to Bangladesh, Sri Lanka, Vietnam, Malaysia, Tanzania, Sudan, Senegal, Mozambique and Myanmar in addition to DLW has also diversifies into manufacture of Diesel Generator (DG) sets and is the proud supplier of the extremely critical back up DG sets to Nuclear Power Corporation India Limited’s nuclear power plants at Kota, Narora, Kaiga and Kalpakkam. DLW’s which is the only manufacture of mainline diesel electric locomotives not only in India but in the whole South and Southeast Asia has grown and transformed over the years to meet the nation’s changing transportation needs. Having manufactured over 6700 locomotives till date, DLW is now one of the biggest locomotive manufacturers in the world. In the year 2012-13, DLW manufactured an unprecedented 294 locomotives, thereby increasing its production nearly three times from 112 locomotives manufactured in the year 2002-03. Diesel Locomotive Works (DLW), Varanasi will be shining in the glory of ‘Golden Jubilee’ year when it will be completing 50 years of its production service next year i.e 2014 since its inception in 1964.
New Delhi: In continuing with its technological upgradation programme, Indian Railways has produced the prototype 5500 HP diesel locomotives (WDG5) which are already running as a pilot project in North Central Railway. This Loco is developed by Diesel Locomotive Works (DLW), Varanasi, a production unit of Indian Railways. This is so because no locomotive manufacturer in the entire world has attempted more than 4000 HP on 22 tonne axle load and also because of the smaller moving dimension of locomotive as compared to USA and Canada. The 5500 HP WDG5 is primarily aimed at improving the throughput with higher balancing speeds. The locomotive will be able to achieve 100 Kmph speed on level track with higher axle load. WDG5 brings to Indian Railways advanced technologies such as Electronic Fuel Injection (for higher fuel efficiency and emission control). DLW’s locomotive designs implement collision protection, provision for heating, ventilation and air conditioning, task lighting, improved visibility, ergonomic seating and a soothing and aesthetic visual TFT based display (similar to that used in aircrafts), thereby setting up new standards for crew comport and safety. Today DLW is able to manufacture locomotives with a wide horsepower range, from 1400 HP to 5500 HP for multiple track gauges. Thus, besides meeting the needs of non-railway customers in India, DLW is exporting locomotives to Bangladesh, Sri Lanka, Vietnam, Malaysia, Tanzania, Sudan, Senegal, Mozambique and Myanmar in addition to DLW has also diversifies into manufacture of Diesel Generator (DG) sets and is the proud supplier of the extremely critical back up DG sets to Nuclear Power Corporation India Limited’s nuclear power plants at Kota, Narora, Kaiga and Kalpakkam. DLW’s which is the only manufacture of mainline diesel electric locomotives not only in India but in the whole South and Southeast Asia has grown and transformed over the years to meet the nation’s changing transportation needs. Having manufactured over 6700 locomotives till date, DLW is now one of the biggest locomotive manufacturers in the world. In the year 2012-13, DLW manufactured an unprecedented 294 locomotives, thereby increasing its production nearly three times from 112 locomotives manufactured in the year 2002-03. Diesel Locomotive Works (DLW), Varanasi will be shining in the glory of ‘Golden Jubilee’ year when it will be completing 50 years of its production service next year i.e 2014 since its inception in 1964.
India and US to chart out future cooperation
New Delhi: In order to chart a course for future cooperation in areas including civil nuclear technology, trade, investment and defence, Dr Manmohan Singh, Prime Minister of India and Mr Barack Obama, President of United States of America (USA) will meet on September 27, 2013, at the Oval Office in the White House.
It is also expected that some agreements including in the field of defence will be signed after the summit meeting between the two leaders.
Dr Singh is expected to raise India’s concerns over the proposed changes in US visa norms which would affect the highly-skilled IT professionals from India.
“Over the past decade, our relationship with the US, which is one of our most important relationships, has transformed into a global strategic partnership” highlighted Dr Singh before the meeting. He further added, “The intensive, high—level bilateral visits over the last few months reflect the strong momentum of bilateral engagement. We have also registered impressive progress in our cooperation across the full spectrum of the relationship. My visit is an opportunity to review our joint efforts and chart a course for our future cooperation. ”India sees the US as a long term partner in the country’s development efforts, and in fostering a global environment that is conducive to its growth. The US remains a key source of technology, investment, innovation, resources and one of the most important destinations for our goods and services, said Dr Singh.
President Obama is also looking forward to his meeting with Dr Singh, said Mr Jay Carney, Press Secretary, White House.
It is also expected that some agreements including in the field of defence will be signed after the summit meeting between the two leaders.
Dr Singh is expected to raise India’s concerns over the proposed changes in US visa norms which would affect the highly-skilled IT professionals from India.
“Over the past decade, our relationship with the US, which is one of our most important relationships, has transformed into a global strategic partnership” highlighted Dr Singh before the meeting. He further added, “The intensive, high—level bilateral visits over the last few months reflect the strong momentum of bilateral engagement. We have also registered impressive progress in our cooperation across the full spectrum of the relationship. My visit is an opportunity to review our joint efforts and chart a course for our future cooperation. ”India sees the US as a long term partner in the country’s development efforts, and in fostering a global environment that is conducive to its growth. The US remains a key source of technology, investment, innovation, resources and one of the most important destinations for our goods and services, said Dr Singh.
President Obama is also looking forward to his meeting with Dr Singh, said Mr Jay Carney, Press Secretary, White House.
Schneider Electric starts support facility for data centres
Hyderabad: Schneider Electric has commissioned a services bureau in Bangalore as a nerve centre and a support facility for data centres in India and the Asia-Pacific region.
The French major, which provides energy management solutions, describes the new services bureau as a Centre of Excellence. This centre integrates information management systems, monitoring solutions, data science, technical and operational expertise.
This bureau will address the requirement of its data centre services clients in verticals such as telecom, retail banking, healthcare, manufacturing. It has been set up to help customers optimise their infrastructure, senior company officials told Business Line.
Philippe Arsonneau, Senior Vice-President APJ Schneider Electric, IT Business Unit said: “Data centres are becoming increasingly complex to manage and operate, as the business risks associated with failure of such critical infrastructure equipment is too significant to disregard. Schneider Electric through this bureau will help customers optimise their investments without any problems.”
Nikhil Pathak, Vice-President, Schneider Electric IT Business, India & SAARC said: “Over the last two years, our India team has built the expertise and experience in offering complete services for all critical environments. Energy management is a major driver for addressing efficiency as a whole.”
The corporation seeks to build on its close relationship with customers and help them by offering services both on site and through such centres.
For the company, its large installed base provides an opportunity to offer services, spanning energy, IT infrastructure and data centre management. Technical experts, business analysts will facilitate better management of critical data of companies.
The French major, which provides energy management solutions, describes the new services bureau as a Centre of Excellence. This centre integrates information management systems, monitoring solutions, data science, technical and operational expertise.
This bureau will address the requirement of its data centre services clients in verticals such as telecom, retail banking, healthcare, manufacturing. It has been set up to help customers optimise their infrastructure, senior company officials told Business Line.
Philippe Arsonneau, Senior Vice-President APJ Schneider Electric, IT Business Unit said: “Data centres are becoming increasingly complex to manage and operate, as the business risks associated with failure of such critical infrastructure equipment is too significant to disregard. Schneider Electric through this bureau will help customers optimise their investments without any problems.”
Nikhil Pathak, Vice-President, Schneider Electric IT Business, India & SAARC said: “Over the last two years, our India team has built the expertise and experience in offering complete services for all critical environments. Energy management is a major driver for addressing efficiency as a whole.”
The corporation seeks to build on its close relationship with customers and help them by offering services both on site and through such centres.
For the company, its large installed base provides an opportunity to offer services, spanning energy, IT infrastructure and data centre management. Technical experts, business analysts will facilitate better management of critical data of companies.
Swedish hygiene products company SCA to set up Rs 145-crore manufacturing facility in India
Chennai: Global hygiene and forest products company SCA will set up a manufacturing facility for hygiene products with an investment of about Rs 145 crore in India. The facility is expected to commence production in 2015, a statement from the company said.
The brands that SCA intends to launch in India over the coming months are TENA - for incontinence care, Libero baby care, Tempo - for hand and face hygiene and Tork, a range of away-from-home tissues.
"SCA aims to grow organically and has extensive experience in the hygiene business, which should help to provide better hygiene for the Indian consumer. The large population and the low penetration of hygiene products provide the potential for SCA's future growth," adds Cecilia Edebo - Vice President Consumer Goods SCA India, said in a statement.
"In order to achieve this goal we have done thorough research of the Indian market and developed a solid plan that takes into account regional specifics as well as preferences of our target audiences," Milind Pingle - managing director of SCA said.
The Swedish company will now compete with Procter & Gamble's Pampers, Kimberly Clarke's Huggies and Unicharm's Mamy Poko Pants in the Rs 4,000-crore baby diaper market in India.
"The investment is in line with our strategy of strengthening SCA's presence in emerging markets", Jan Johansson, president and CEO of SCA said.
The brands that SCA intends to launch in India over the coming months are TENA - for incontinence care, Libero baby care, Tempo - for hand and face hygiene and Tork, a range of away-from-home tissues.
"SCA aims to grow organically and has extensive experience in the hygiene business, which should help to provide better hygiene for the Indian consumer. The large population and the low penetration of hygiene products provide the potential for SCA's future growth," adds Cecilia Edebo - Vice President Consumer Goods SCA India, said in a statement.
"In order to achieve this goal we have done thorough research of the Indian market and developed a solid plan that takes into account regional specifics as well as preferences of our target audiences," Milind Pingle - managing director of SCA said.
The Swedish company will now compete with Procter & Gamble's Pampers, Kimberly Clarke's Huggies and Unicharm's Mamy Poko Pants in the Rs 4,000-crore baby diaper market in India.
"The investment is in line with our strategy of strengthening SCA's presence in emerging markets", Jan Johansson, president and CEO of SCA said.
CARE Ratings to enter Europe via Singapore consortium
New Delhi: Credit rating agency Credit Analysis & Research Ltd (CARE) is entering the European market through a Singapore-based international arm.
It has joined hands with credit rating agencies in four other countries — Brazil, Malaysia, South Africa and Portugal — to set up a Singapore-based entity called ARC Rating Holding.
CARE will hold 20 per cent stake in this Singapore entity, which will hold 100 per cent in ARC Rating Europe, D. R. Dogra, Managing Director and CEO, CARE Ratings, told Business Line. “We can’t go international on our own and that is why the joint venture route. But we see lot of growth opportunities for us in Europe. ARC Rating Europe will have an office in London,” Dogra said.
ARC Rating Europe will cater only to large companies and not offer rating services for small businesses.
CARE, which had launched an initial public offering in December 2012, is the country’s second largest credit rating agency by revenue.
A presence in London will help it serve Indian corporate clients, which have spread their wings in Europe, better.
Indian companies need not only look to entrenched foreign credit rating players in those markets for their needs, it was pointed out. Dogra also said that CARE will set up an entity in Mauritius this fiscal, in which it would have a controlling interest of 51 per cent.
The remaining stake may be picked up by African Development Bank, South African credit rating company Global Credit Rating (GCR) and others.
CARE would look to enter Africa through the Mauritius entity.
In Africa, plans are afoot to offer rating services for large companies as well as small and medium businesses, he said.
It has joined hands with credit rating agencies in four other countries — Brazil, Malaysia, South Africa and Portugal — to set up a Singapore-based entity called ARC Rating Holding.
CARE will hold 20 per cent stake in this Singapore entity, which will hold 100 per cent in ARC Rating Europe, D. R. Dogra, Managing Director and CEO, CARE Ratings, told Business Line. “We can’t go international on our own and that is why the joint venture route. But we see lot of growth opportunities for us in Europe. ARC Rating Europe will have an office in London,” Dogra said.
ARC Rating Europe will cater only to large companies and not offer rating services for small businesses.
CARE, which had launched an initial public offering in December 2012, is the country’s second largest credit rating agency by revenue.
A presence in London will help it serve Indian corporate clients, which have spread their wings in Europe, better.
Indian companies need not only look to entrenched foreign credit rating players in those markets for their needs, it was pointed out. Dogra also said that CARE will set up an entity in Mauritius this fiscal, in which it would have a controlling interest of 51 per cent.
The remaining stake may be picked up by African Development Bank, South African credit rating company Global Credit Rating (GCR) and others.
CARE would look to enter Africa through the Mauritius entity.
In Africa, plans are afoot to offer rating services for large companies as well as small and medium businesses, he said.
Foreign currency bank borrowings norms eased
Mumbai: The Reserve Bank of India (RBI) on Wednesday eased the norms for banks borrowing through foreign currency. For bank borrowings exceeding half the unimpaired tier-I capital made on or before November 30 for availing of RBI’s swap facility, the central bank lowered the maturity requirement from three years to a year.
After November 30, the maturity for foreign currency borrowing by banks beyond 50 per cent of their tier-I capital would have to be at least three years, RBI said.
“This move is directed towards attracting foreign flows; it is easier to get borrowings for a year, rather than three years,” said S Srinivasaraghavan, head of treasury at Dhanlaxmi Bank.
Experts said the move was aimed at helping the rupee appreciate against the dollar.
On Wednesday, the rupee ended at 62.44/dollar, against the previous close of 62.77/dollar. It touched a low of 62.89 and a high of 62.33 during intra-day trade. The appreciation resulted from dollar sale by companies and custodian banks.
After November 30, the maturity for foreign currency borrowing by banks beyond 50 per cent of their tier-I capital would have to be at least three years, RBI said.
“This move is directed towards attracting foreign flows; it is easier to get borrowings for a year, rather than three years,” said S Srinivasaraghavan, head of treasury at Dhanlaxmi Bank.
Experts said the move was aimed at helping the rupee appreciate against the dollar.
On Wednesday, the rupee ended at 62.44/dollar, against the previous close of 62.77/dollar. It touched a low of 62.89 and a high of 62.33 during intra-day trade. The appreciation resulted from dollar sale by companies and custodian banks.
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