Bangalore-based Vijaya Bank is planning to raise Rs 700 crore through Perpetual Non- Cumulative Preference(PNCP) route to support its expansion plan.

Vijaya Bank to raise Rs 700 cr through PCNP

Business Standard

I welcome this pro-growth and inclusive Budget as an important milestone in restoring India on the 9 per cent growth path over time. Indian economy has performed well, especially given the backdrop of the global turmoil, as it continues to build on the strength of domestic consumption.

Inclusive Budget

The financial sector in the words of the finance minister is the &ldquo;lifeblood of any economy&rdquo;. The Budget has put more money in the hands of individuals by increasing the personal income tax exemption limit, removing 10 per cent surcharge on personal income tax and removing FBT. Surcharge on personal income tax and FBT contributed about Rs 11,500 crore in FY09 and the removal will enhance individual disposable income.

Positive moves

There is no quick solution to India&rsquo;s challenges and, as Finance Minister Pranab Mukherjee said, one budget would not do it. Consequently, the new government has focused on sustained growth while defending the economy against the global crisis, albeit at the cost of fiscal consolidation.

Towards a sustained, inclusive growth

The Union Budget for the current fiscal year is a pragmatic and honest budget. The increased allocation to physical infrastructure is a step in the right direction. The government has also incentivised the banking system to lend more to the infrastructure sector by providing 60 per cent refinancing of commercial bank loans through IIFCL over the next one and a half years. The Budget also aims to administer some stimulus by shoring up private consumption.

Pragmatic outlook

A finance minister in any country across the world needs to reconcile the variable demands of vested interests. Presenting a Union Budget in the current economic environment was always going to be a tough balancing act for any finance minister. Expectedly, the Budget focused mainly on the poor with promises of additional infrastructure spending.

Achieving the manageable

The key theme for the Union Budget is clearly sustainable growth. The Budget provides significant direction towards &ldquo;inclusive growth&rdquo;, addressing bottlenecks that impede investment and focusing on infrastructure and the farm and rural sector as growth accelerators for crystallising 4 per cent agriculture and 9 per cent industry growth.

Winning proposition

&ldquo;Some of the positives that we can pick up from the Budget includes abolition of fringe benefit tax (FBT) and commodity transaction tax (CTT), continued commitment to changeover to a goods and services tax (GST) regime from April 1, 2010, larger investment in the agriculture sector, particularly on developing the cold chain infrastructure, greater investments in infrastructure and social sectors and an even higher target for agriculture credit in the year 2009-10,&rdquo; said Harsh Pati Singhania, president, Ficci.

Chambers&#39; Reactions: Ficci: Faith in growth

The finance minister (FM) has done a good job to maintain an aggregate demand in a recessionary situation by increasing rural spending and giving some reprieve in income tax by cutting the surcharge. It&rsquo;s a fairly balanced Budget. The fall in markets is an over-reaction as the finance minister has never said that there would not be any divestment. Instead, he has hinted that nearly Rs 25,000 crore is likely to be raised through divestment.

Analysts' View: Raamdeo Agrawal

Bankers predict pressure on interest rates saying huge borrowings will suck out liquidity resulting in reduced lending.

Huge debt to crowd out private players

More sops for defaulters; 1% interest subsidy for timely payers.

Pay late, it's okay, govt tells farmers

The New Pension Scheme (NPS) is unlikely to see a sharp improvement in inflows in the coming months, though the transaction cost for fund managers is expected to come down.

Tepid response may continue

The government today positioned India Infrastructure Finance Company Ltd (IIFCL) as the focal point for lending to the core sector by providing it additional capital and announcing that it would try new models to fund projects.

Loaded govt arm to pump up infra

Finance Minister Pranab Mukherjee presented the broad contours of the government&rsquo;s strategy for banks. Though the statement was limited to public sector players, there were few concrete steps to strengthen the financial sector, which he dubbed as the life blood of the economy.

No top-up for economy's &#39;life blood&#39;

The Indian rupee appreciated by 15 paise against the&nbsp;$ in early trade today on expectations of capital inflows after firm domestic stock markets.

Re rises by 15 paise to 48.39 a $ in early trade

Press Trust of India

Bank of Maharashtra is planning to raise funds from the market, its Chairman and Managing Director Allen C A Pereira said today.

Bank of Maharashtra plans to raise funds

Bank of Maharashtra (BoM), today said that it has reduced its benchmark prime lending rate (PLR) by 0.25 per cent to 12.25 per cent.

Bank of Maharashtra cuts PLR, deposit rates

The bank's income grew 22 per cent at Rs 8,747 crore.

StanChart FY09 profit up 12%, at Rs 1,907 cr

ICICI Lombard General Insurance, today said it offers customised weather-based crop insurance to help farmers cover losses caused by weather damage under its Weather-based Crop Insurance.

ICICI Lombard offers customised weather-based crop insurance

Concerned over rising slippages in the industry, bankers today sought an extension of loan restructuring facility and said more measures are needed to push credit demand in the economy.

Rise in NPAs: Bankers for extension in restructuring deadline

Public sector lender Corporation Bank today said it will raise Rs 300 crore through the issue of bonds.

Corporation Bank to raise Rs 300 cr via bonds

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