Srei Infra plans rural banking foray; to seek bank licence

NEW DELHI: Looking to strengthen its presence in rural areas, Srei Infrastructure Finance today said it would apply for banking licence once the final norms in this regard a

re in place. ” We are interested in rural banking. If, after the final guidelines, we are qualified to apply, we will apply,” Srei Infrastructure Finance Chairman and Managing Director Hemant Kanoria told PTI. He added, ” We are interested to go into the rural areas. We have a network in place as we are already working in the rural area, so for us it should not be a difficult task”. Earlier this week, the Reserve Bank of India unveiled the draft guidelines on new banking licences, allowing business houses with successful track record and a minimum capital of Rs 500 crore to set up commercial banks. RBI had in 2001 issued two banking licences. In 1993, it had allowed 10 entities to float commercial banks.

K. K. Birla group firm temporarily closed

PANAJI: Zuari Industries limited ( ZIL), a K. K. Birla group company in Goa, has been temporarily shut due to a shortage of naphtha, a raw material needed to manufacture agricultural fertilisers. The temporary shutdown follows a major accident last week in which leaked naphtha caused a major fire in the port town of Vasco, 30 km from here, resulting in the death of three people trapped in the fire. ZIL has an annual turnover of over Rs. 2,000 crore and manufactures fertilisers and agricultural inputs.

Only 2.77 % of population pay tax

NEW DELHI: Just 2.77 % of Indias 1.21 billion people pay personal income tax. ” The number of effective tax payers as on March 31, 2011 was 3,35,79,831 ( 33.57 million),” Minister of State for Finance S. S. Palanimanickam informed the Rajya Sabha Tuesday. This is just 2.77 percent of over 121 crore or 1.21 billion population of the country, The amount of direct tax collection rose to Rs. 446,070 crore in 2010- 11 from Rs. 378,063 crore in the previous year, the minister said.

NBFCsalt39 profits to be hit: Crisil

MUMBAI: Ratings agency Crisil said the Reserve Banks recommendations on NBFCs will structurally strengthen the players but the increased provisioning norms may affect the profitability, as average return on assets will come down by up to 30 basis points. ” There could be short- term adverse impact on NBFCsalt39 profitability – the average return on assets could by 25 to 30 basis points ( bps), driven by increased provisioning,” the agency said in a note. A change in the asset classification norms will also result in a jump in the non- performing asset ratios, the report said.

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