Oct 01, 2013, 04.39 PM | Source: CNBC-TV18
Moody's downgrade won't make borrowing money from abroad expensive, says CMD Vijayalakshmi Iyer.
“ Going forward I am sure there will be greater demand for credit and this would be an additional measure for the banks to tap the liquidity. ”
- VR Iyer (CMD)
Public sector lender Bank of India , which is one of the banks picked up by Moody's, says that downgrade of sub-debt ratings will not have much impact.
Its CMD Vijayalakshmi Iyer told CNBC-TV18 that the bank has enough money to take care of credit requirements.
Below is the edited transcript of Vijayalakshmi Iyer’s interview with CNBC-TV18
Q: There is a downgrade of subordinate debt of 11 banks including yours by Moody’s. Will it make it expensive for you to raise money abroad?
A: I do not think because when they downgrade the rating of any particular bank it goes with the government rating. When we go to borrow or raise money abroad, specific rate parameters should not have much of an impact.
Q: You also get the advantage now to swap that money with the Reserve Bank of India (RBI) at 1 percentage point less than the market. So, should we see you using this, will you be raising money?
A: I do not think we should be doing that immediately because there is no need for us to do that. When the opportune time comes and the economy picks up then that will be a good option for me to do that.
Q: The current overseas borrowing limit has been doubled as well from 50 percent to 100 percent. How will that help you in terms of easing the liquidity pressures?
A: As the credit picks up and the economy takes a u-turn which it will definitely with the positive sentiment already built-up since yesterday. Going forward I am sure there will be greater demand for credit and this would be an additional measure for the banks to tap the liquidity.
Q: You will use it before November 30. That window is available only till November 30?
A: It is too early for me to know that because I do not need money as of now. I have money to take care of another two quarters’ credit requirement.
Bank of India stock price
On February 05, 2016, Bank Of India closed at Rs 97.80, up Rs 4.55, or 4.88 percent. The 52-week high of the share was Rs 260.85 and the 52-week low was Rs 90.10.
The latest book value of the company is Rs 389.12 per share. At current value, the price-to-book value of the company was 0.25.
Hong Kong eyes strengthening business ties with India
"India is Hong Kong's seventh-largest trading part
Bank of India acquires 49% stake from BSE in BOI Shareholding
BOI Shareholding Ltd was established in 1989 as an
Sell Bank of India, Syndicate Bank: Chandan Taparia
Chandan Taparia of Anand Rathi Securities recommen
Bank of India allots shares worth Rs 264 crore to LIC
"The bank has allotted 2 crore equity shares to Li
Bank of India allots 2cr equity shares to LIC of India on preferential basis
Bank of India has allotted 2,00,00,000 Equity Shar
BoI raises Rs 3,000 cr via Basel-III complaint bonds
"Bank has raised Rs 3,000 crore by issue of Basel-
In talks with BoB, PNB and BoI for refinance: Mudra Bank, CEO
In an interview with CNBC-TV18, Jiji Mammen, CEO o
Airtel, Axiata subsidiaries merger credit positive: Moody's
On January 28, Bharti Airtel Limited (Baa3 stable)