Mumbai : The successful transformation of Axis Bank is a great template to potentially transform IDBI Bank, Minister of State for Finance Jayant Sinha said.
“The Axis Bank transformation has been very successful. It’s a great template for how we could potentially transform IDBI Bank. That’s essentially the road map we are considering,” Sinha said on the sidelines of a capital markets conference organised by FICCI.
5% withholding tax on Masala bonds mooted
The finance ministry is mulling a proposal to allow 5% withholding tax on interest payments on rupee denominated overseas borrowing, a ministry official said. Currently, this lower withholding tax, as against the normal rate of 20%, is available on foreign currency borrowings.
Last week, Indian Railways Finance Corp Ltd Managing Director Rajiv Datt told Cogencis that the financial institution had approached the finance ministry to allow 5% withholding tax on interest payments on rupee-denominated overseas bonds.
“Our plea to the government is that this 5% which is there should be applicable here also. There are positive indications from the government on this,” Datt had said.
