Raised infra bonds to help in gathering funds
The public sector lender Bank of Maharashtra on Monday stated that it has been planning to start the infrastructure bonds in the upcoming six months in order to raise funds. The Reserve Bank of India (RBI) has recently omitted long term bonds from the mandatory regulatory norms like the Cash Reserve Ratio or CRR, the Statutory Liquidity Ratio or SLR and Priority Sector Lending or PSL if the money rose will be used for funding in infrastructure projects.
Bank of Maharashtra CMD S Muhnot said that they hope to build up the infrastructure portfolio and go for the bonds soon around earlier than six months. Muhnot has said that the funds raised will provide help to the bank to increase its exposure to the sector to more than 17 percent of the loan portfolio by the fiscal end of the current 14 percent.
This plan will help in creating better infrastructure projects and boost the realty sector. As stated by the Finance Minister in the Union budget, he expects that the boost in realty sector will help in eradicating rising poverty issues in India. By the end of the current financial year the realty sector is hopefully going to take an upsurge.
Source: The Financial Express
Cash Reserve Ratio, Cash Reserve Ratio (CRR) rates, Infrastructure projects, Priority sector lending, Raised infra bonds, Reserve Bank of India, SLR, Statutory liquidity ratio, urban infrastructure projects
