January 21, 2009

Commercial vehicle finance companies have sought more sops from the Reserve Bank of India, including halving the risk weights for the segment to 50 per cent.The move is aimed at helping them reduce the interest rate on loans for purchase of commercial vehicles and free up additional capital to meet the higher capital adequacy ratio requirement.

Non-banking finance companies (NBFCs) have to maintain a capital adequacy ratio of 12 per cent, which is to go up to 15 per cent from April, 2010.Ahead of the credit policy, NBFCs have approached the central bank through industry lobby Finance Industry Development Council (FIDC).