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

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Pinkesh Jain
Everflow Petrofils Ltd

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella 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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search