 "Srei Infra announces hike in benchmark rate")
Srei Infrastructure Finance Limited has announced that it would be raising its benchmark rate by 50 basis points or 0.5% with effect from September 1, 2013.
The benchmark rate, or a minimal interest rate used for lending activities, will go up from 17.5% to 18%.
“The companies asset liability management committee met and after reviewing the cost of borrowing, decided to increase its benchmark rate,” said the exchange announcement.
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The company had last hiked its rate in September 2011, by 75 basis points.
Bijoy Daga, chief executive officer of the company suggested that the macro-economic situation necessitated the move.
“The interest rate increase comes at a time when the cost of funds have increased for the infrastructure sector. This pressure is expected to continue as long as our monetary policy remains tight due to the overall macro-economic scenario and rupee depreciation. We hope that the government makes a concerted effort to check the fall in rupee,” he said in the statement.
The stock was down 3.07% and trading at Rs.18.95 at the time of writing.
Srei has Rs.34,400 crore of Consolidated Assets Under Management according to its website. It provides Infrastructure Project Finance, Advisory and Development, Infrastructure Equipment Finance, Alternative Investment Funds in addition to Capital Market and Insurance Broking.