Assorted Links

1. Despite some strong opposition it seems foreign reserves are going to be used for infrastructure funding. Business Standard points out to a report from Ernst & Young that says corruption has led to lower financing available for infrastructure.

2. Rupee Appreciation has been great for FIIs.

3. RBI asks Banks that wish to be an insurance player to explain how they would arrange huge sources of capital needed in the insurance business when the banks would need extra capital for banking business in wake of Basel II norms.

4. Mythili Bhushnurmath says we are moving to investment driven growth. I think we need more data.  It is exactly what Economic Advisory Council suggested.

5. Business Standard points out to a study from National Housing Bank that says India needs to build 26,300 houses every day to meet the housing requirements of all segments of the population. It says housing finance is not available to rural areas:

Analysing the performance of banks in housing finance over a period of five years from 1999-00 to 2004-05, the report reveals that loan disbursements went up by 68 per cent during the period to Rs 86,034 crore from Rs 58,623 crore.  

The share for rural areas in the total housing finance had remained constant at 10.3 per cent and share of semi-urban areas declined from 22.4 per cent to 15.4 per cent, whereas it went up to 47.3 per cent in 2005 in metropolitan areas from 37.2 per cent in 2000.

What got me stirred was“this would would require an investment to the tune of Rs 10 lakh crore!!”

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