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Finance Ministers of India

Pranab Kumar Mukherjee
(1982-1985, Feb 2009-May 2009, May 2009-Continuing)

Pranab Kumar Mukherjee is a prominent leader of India National Congress. He has...
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Sectoral Expectations from Union Budget 2011-12: Banking

India Infoline Research Team / 15:57, Feb 23, 2011

Banks to be allowed to raise long-term funds through issue of tax-free infrastructure bonds (like IFCs)

Banking

Expectation
 Probability
 Implications
Banks to be allowed to raise long-term funds through issue of tax-free infrastructure bonds (like IFCs) 
High
 Positive for the sector as it would address the ALM issues in infrastructure funding 
Allocation of capital for infusion into PSU banks as in the 2010 Budget (Rs165bn)
High
 Positive for small PSU Banks
Increase in FDI limit for the insurance sector from current 24% to 49%
Low
 Positive for banks/NBFCs having insurance ventures
Government’s net market borrowings to be higher than FY11
 High
 Negative for the sector as this would put significant pressure on yields amid tight liquidity 
Raising limit of refinancing from IIFCL
 Medium
 Positive for the sector as it would address the ALM issues in infrastructure funding


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