The Times of India 26.04.2013
AMC to renegotiate loan interest rate
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.
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.
