Commercial Drive

Savings banking giant NSB has sought approval for more commercial lending in an attempt to broad-base its mammoth deposits.rn

rnThe bank has sought changes to its Act through the financial reforms committee to enable them to lend more to private sector companies.rn

rnAbout eighty two percent of the bank
quote s Rs. 125 bn portfolio is invested in government debt.rn

rnThe rest has been invested in corporate debt paper and loans, including housing loans.rn

rnThe proposals for amending the Act have been submitted through the financial reforms committee, which is advising the government on reforming the financial services sector.rn

rnNSB has already lent large sums of money to some blue chip companies and banks.rn

rnThe amendments to the Act seek to broad base NSB
quote s ability to do more commercial lending.rn

rnAnalysts say that NSB with its lower cost of mobilizing funds would be able to offer rates slightly above the government risk free rates to good borrowers.rn

rnThe government announced e