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 May 04, 2016, Bank Of India closed at Rs 85.70, down Rs 2.15, or 2.45 percent. The 52-week high of the share was Rs 225.80 and the 52-week low was Rs 80.10.
The latest book value of the company is Rs 377.03 per share. At current value, the price-to-book value of the company was 0.23.
Sudarshan Sukhani of s2analytics.com is of the vie
Slippages in non-performing assets will come down
Bank of India has informed BSE that the Government
BP Sharma, ED of Bank of India says that MSME segm
HeidelbergCement India has reported a sales turnov
Medi-Caps has reported a sales turnover of Rs 6.77
When you unplug you mind for a minute, you restore
Reliance Infra posted its third quarter results. N