Home / Knowledge / News / Reduced credit rate to benefit MSME export sector – FIEO
Reduced credit rate to benefit MSME export sector – FIEO
06
May '09
Mr A Sakthivel, President, Federation of Indian Export Organisations (FIEO) while commenting on the drop in LIBOR to the present low of less than 1% (for 3 months) stated that this may reduce lending costs to the MSME export sector which are dependent on MIBOR (Mumbai Inter Bank Offered Rate) / MIFOR (Mumbai Inter Bank Foreign Currency Rates).

The FIEO Chief elaborated that credit can be offered at reduced rates to the MSME export sector provided that the “spreads” of the banks in terms of operating costs are kept at its minimum. According to a study, about 25% of the PLR is contributed by operating costs (3.25%) and about 50% through cost of deposits (6.25%).

If these two factors are taken care of the “spreads” of Banks would reduce and credit cost would be more competitive vis-à-vis the international market [Return on assets and provision for NPA's together contribute to a fourth of the PLR].

President, FIEO opined that with RBI closing the second reverse repo window for accepting surplus funds from banks, banks may be forced to offload Rs.40,000 to Rs.50,000 crores of excess lendable liquidity. The cost of this lendable credit could be brought down and be made comparable to levels in the international market by reducing domestic overhead costs.

Federation of Indian Export Organisations


Must ReadView All

Textiles | On 27th Jun 2017

Govt defers tax deduction at source provision under GST

E-commerce players in India will not be required to deduct tax on...

Apparel/Garments | On 27th Jun 2017

Future Group aims Rs 12,000 crore in fashion business

Future Group, which runs retail stores across India under various...

Textiles | On 27th Jun 2017

AEPC & NSDL to help exporters with GST compliances

Apparel Export Promotion Council (AEPC) and National Securities...

Interviews View All

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search