AURANGABAD: After a gap of about four year, the Aurangabad municipal corporation (AMC) is now planning to re-negotiate terms with IDBI
Bank. It is also exploring opportunities to transfer its fixed deposit
amount of Rs 160 crore to another bank to earn more interest.

A senior officer in the AMC on Thursday said that the rate offered by
the IDBI was not competitive and hence the administration was looking
for options.

In addition to this, the civic body is also making
attempts to bring down rate of interest of its loan amount which it had
procured from the IDBI on two different occasions. In April 2012 and
December 2012, the municipal body had availed Rs 97 crore and Rs 94.50
crore respectively. The officer said the IDBI was charging 13% interest
rate on the amount.

In 2009-10, the AMC had deposited Rs 138
crore in IDBI at the rate of 7% per annum. But four years down the line,
the AMC feels the rate is very low. “We should get at least 0.5% more,”
said another senior officer in AMC’s accounts department on condition
of anonymity.

Meanwhile, municipal commissioner Harshdeep
Kamble said the AMC was paying installments of Rs 3.75 crore to IDBI
every month on account of the loans. “We have requested the bank to cut
interest rates,” he said.

However, he denied that the civic
body was looking out for another bank. “We have good financial terms
with the bank and hence there is no question of knocking on another
door. Nevertheless we can certainly request the IDBI to bring down the
rates,” he said.