New Delhi: Liquid money is flowing through the veins and arteries (read corporate houses) of the Indian economy. Thanks to Manmohan Singh and his industry-friendly policies, Indian corporate houses along-with their business allies in United States are rolling in money.
A recent estimate shows that few of the biggest conglomerates or corporate houses have borrowed money to the tune of 8.3 billion dollars—raised through 33 deals in the first half of the year with a number of private and public sector banks.
Reliance Industries alone mopped up a whopping USD 2.7 billion.
But the question is where is all the money? What about passing the benefits down to the poorer sections of the economy? Are these companies passing the benefit back in terms of employment, remuneration to employees, dividends? Or are they ploughing it all back in the business?
Infosys chief mentor, NR Narayana Murthy hinted a few weeks back that the company—in order to re-invest the profits into business—plans to limit its dividends to 20 per cent or below.
“In the USA, high-tech and growth companies don’t give anything (read dividend) because they want to plough back all that into the business. As there is a tradition of giving out dividend in India, we have decided to have a policy of 20 per cent,” Murthy pointed out at the companies 26th annual general meeting.
Big corporate houses are mopping money by way of syndicated loans, which refers to a large sum of funds provided by a group of banks collectively to a borrower. There is usually one lead bank that takes a percentage of the loan and syndicates the rest to other banks.
Syndicated loans volume of India Inc was at 8.3 billion dollar for the first half of this calendar year, which has shown a steady growth over previous year figure of 8.1 billion dollar through 41 deals," global consulting firm Dealogic was quoted by PTI.
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