RBI Update by Epic Research

Issues instructions for long-term bonds for infra financing



Issues norms for long-term bond issue by banks for infra debt



Intend to ease raising of long term funds by banks for infra



Infrastructure status for affordable housing projects



Not prescribed ceiling, floor on repayment term



No cap on quantum of long-term bonds to be issued by banks



Long-term bonds of banks to not be considered under NDTL



Infra status for home loans up to Rs 50 lakh, with riders



Minimum maturity period of banks’ long-term bonds to be 7 years



No objection to banks financing long-term core, infra projects



Long-term bonds of banks to be exempt from CRR, SLR requirements



Long-term bonds of banks to also be exempt from priority sector lending



Norms not against banks structuring long-term financial products



Banks can issue infra bonds via private, public placement



Priority sector norms to be eased for banks’ long-term bonds



Cross-holding of infra bonds among banks not permitted



Long-term bonds of banks must be plain vanilla in form



Long-term bonds of banks cannot have call or put option



Banks can refinance loans to classified core, infra sectors



Banks can issue infra bonds with fixed, floating interest rate



Long-term bonds of banks not eligible for deposit insurance



Banks must share data on long- term bonds soon after issuance



Banks to fix infra loan amortisation schedule at appraisal stage



Banks can only issue rupee-denominated infra bonds



Infra loan amortisation plan to not exceed 80 percent of project life



Banks may offer initial term of 5-7 years for infra, core loan



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Posted in: Indian Market Tips