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IDBI plans Rs 3,000 cr bonds issue
New Delhi, Sept 08: Industrial Development Bank of India, which awaits parliamentary approval for its transformation into a universal bank, plans to raise Rs 3,000 crore in bonds.
New Delhi, Sept 08: Industrial Development Bank of India, which awaits parliamentary approval for its transformation into a universal bank, plans to raise Rs 3,000 crore in bonds.
IDBI has approached the Finance Ministry for getting an
'umbrella approval' for the infrastructure bonds, official
sources told here today.
The proposal of tax-savings bonds is now with the central board of direct taxes, they said.
IDBI officials here declined to comment on the proposed bond issue before it is cleared by the Finance Ministry.
The proceeds from the bonds is likely to be used for developmental financing, sources said.
Even if IDBI is converted into a bank next year, it would continue developmental financing. IDBI is slated to go for cheap short-term funds in the form of savings and current account deposits.
IDBI is undergoing considerable financial stress as its cost of borrowing is more that its cost of lending.
In view of this, the government introduced the Industrial Development Bank (Transfer of Undertaking and Repeal) Bill last winter but it was sent to standing committee of Finance Ministry.
Although the house panel cleared the bill with some modification, the Bill could not be passed in the monsoon session in August.
As Finance Minister Jaswant Singh has ruled out an ordinance to convert IDBI into a bank, the fi will have to wait till the forthcoming winter session of Parliament for getting approval for its corporatisation and conversion into a universal bank.
Bureau Report
The proposal of tax-savings bonds is now with the central board of direct taxes, they said.
IDBI officials here declined to comment on the proposed bond issue before it is cleared by the Finance Ministry.
The proceeds from the bonds is likely to be used for developmental financing, sources said.
Even if IDBI is converted into a bank next year, it would continue developmental financing. IDBI is slated to go for cheap short-term funds in the form of savings and current account deposits.
IDBI is undergoing considerable financial stress as its cost of borrowing is more that its cost of lending.
In view of this, the government introduced the Industrial Development Bank (Transfer of Undertaking and Repeal) Bill last winter but it was sent to standing committee of Finance Ministry.
Although the house panel cleared the bill with some modification, the Bill could not be passed in the monsoon session in August.
As Finance Minister Jaswant Singh has ruled out an ordinance to convert IDBI into a bank, the fi will have to wait till the forthcoming winter session of Parliament for getting approval for its corporatisation and conversion into a universal bank.
Bureau Report