Home / Knowledge / News / Textiles / RBI okays Indian textile debt rejig on case-by-case basis
RBI okays Indian textile debt rejig on case-by-case basis
16
Jul '12
The Reserve Bank of India (RBI) has asked all banks to consider debt restructuring of the Indian textile industry on a case-by-case basis.
 
The apex bank has advised the banks to open special windows for the purpose between August 1 and October 30, 2012.
 
The Indian textile industry has been affected by slow demand in local and export markets, as well as high fluctuation in cotton and yarn prices, and has been facing difficulty in repaying term loans.
 
However, the Finance Ministry’s suggestion to consider debt restructuring of the entire Indian textile industry was rejected by the RBI.
 
An estimated amount of Rs. 350 billion, of the total outstanding debt of about Rs. 1600 billion in the Indian textile sector, requires restructuring.
 
The RBI said large borrowers in natural as well as man-made fibre sectors are performing relatively better and debt revamp is only required in the small and medium segments.
 
The reduction in cotton prices from their last year’s peak levels would increase the profitability of the textile units, which would enable them to repay their loans, the RBI predicted.
 
In 2008, the RBI granted special exemption and provided for a second debt restructuring of the entire Indian textile sector, in order to deal with the global financial crisis.
 

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Pexels

Fashion | On 23rd Jun 2018

Nigerian bank launches N1 bn fund for fashion entrepreneur

Nigeria’s Bank of Industry has set aside 1 billion Naira (N) to...

Courtesy: Tayal

Textiles | On 23rd Jun 2018

Tayal textile factory in Algeria starts exports to Turkey

Algeria’s largest textile factory, the joint Algerian-Turkish company ...

Courtesy: Manhattan Beachwear

Fashion | On 23rd Jun 2018

Manhattan Beachwear in global partnership with BCBG Group

Manhattan Beachwear, the largest swimwear manufacturer in the US, has ...

Interviews View All

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Paolo Ocleppo
Sandvik Hyperion

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Marten Alkhagen
Swerea IVF AB

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

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Jay Ramrakhiani
Occasions Elegance Wear

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

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search