The Hindu Business Line : Wednesday, March 01, 2006

Short-term credit at 7 pc — Farmers to get from kharif season
The Union Budget has proposed to make available short-term credit to farmers at seven per cent, for which it would provide subvention to Nabard. "Government has decided to ensure that the farmer receives short-term credit at seven per cent, ... More

FINANCIAL SERVICES

Registrars, share transfer agents under service tax ambit — `12% levy is bad news for AMCs'
Registrars, share transfer agents and bankers to equity issues have now been brought under the service tax net. The Finance Bill 2006-07 proposes to levy service tax of 12 per cent on these services. While this is not expected to ... More

BUDGET

Bank deposits to get 80C deduction — Recapitalisation bonds to be converted into tradable securities
Deposit mobilisation by banks will get an impetus with the Finance Minister, Mr P. Chidambaram, allowing investment made in term deposits of scheduled commercial banks with maturity of not less than five years to be eligible for deduction under ... More

A mature financial sector
As part of the reforms in the banking sector introduced in 1993-94, capital was infused in the banks by issue of special securities. To date, the Government has injected Rs 16,809 crore into nationalised banks. Adding the perpetual securities ... More

A draft of demands
Checklist
Boost to credit growth
Government borrowing target modest
Tax benefits for term deposits may not help growth More

Banks to cut lending rates on farm loans
The Finance Bill 2006/2007 proposals to boost the flow of credit into the agriculture sector is being seen as a welcome measure as agriculture lending is a profitable venture, bankers said. The Finance Minister Mr P. Chidambaram has said that ... More

Superannuation scheme to regain favour
The group superannuation scheme is expected to be back as an attractive option for life insurance companies since fringe benefit tax (FBT) will not apply to contributions of up to Rs 1 lakh. The good news is that about 90 per cent of the ... More

Bankers hail move on recap bonds
The move to convert recapitalisation bonds into tradable securities is likely to increase banks' lendable resources by at least another Rs 20,000 crore. The Finance Minister, Mr P. Chidambaram, in his Budget speech said that the special ... More

IDFC adversely affected
The removal of Section 10 23(G) of the Income Tax Act could adversely impact the profitability of Infrastructure Development Finance Corporation (IDFC). A substantial proportion of income received in the form of ... More

NBFC granted audience
One of the senior officials in a non-banking finance company remarked recently that for the first-time the Finance Minister granted an audience to the NBFC sector. This meeting seems to have had the desired effect. The ... More

Ideal for long-term investor

HOUSING FINANCE