City growing steadily,invests generously in tax-saving infrastructure bonds

With the city accommodating a large number of employees in different sectors,it is seen as a steadily growing market by companies that are offering tax-saving infrastructure bonds to investors.

Written by Ishfaq Naseem | Pune | Published:January 4, 2012 4:03 am

With the city accommodating a large number of employees in different sectors,it is seen as a steadily growing market by companies that are offering tax-saving infrastructure bonds to investors. The city is not only rated as a high potential market but is in fact among the top 10 earning cities for the infrastructure finance companies in India.

Senior director resources Infrastructure Development Finance Company (IDFC),S J Balesh,said Pune “is a strategic investment city for us and is an important market given the large tax paying investible population.”

The company made around 4 per cent of its Rs 1,451 crore collections in the city from infrastructure bonds last year. IDFC had over 30 per cent of market share in the infrastructure bonds. This year the company improved on its numbers and the city’s contribution was 5 per cent of the total collection of 538 crore from the infrastructure bonds. Balesh said the company not only maintained the growth but improved on it for the Pune market.

Pune is at the 7th slot in terms of the highest earning cities of the country for the L&T Finance. From the last years collection of nearly Rs 700 crore in the country by L&T Finance,Pune contributed 3.2 per cent. The contribution was as good as Bangalore and Chennai from where the collections were 3.86 per cent and 3.72 per cent respectively. The collections from Pune were significantly better than the other cities like Bhopal and Chandigarh which contributed 0.85 per cent and 1.82 per cent respectively. A spokesman of L&T Finance said,“Given the collections,Pune has proved to be a highly potential market for us.”

Chairman and Managing Director of India Infrastructure Finance Company Ltd (IIFCL),S K Goel,said the company sees Pune as a thriving market. “Pune is a growing city and we see it as a good market.” He,however,said the company has a surplus liquidity and doesn’t want to raise fresh funds from the market as of now. “When the company goes for future tax saving fund raising plans,the city will figure in in our priority list among the collection centres. “

Balesh said people have been investing in the infrastructure bonds because unlike the investments in equities,which depend on market rates,the investments in the infrastructure bonds come with an assured interest rate. “Investing in the bonds can make person save upto Rs 20,000 a year on taxable income. There is,however,no limit on the maximum investment and the bonds are coming with an assured interest of 9 per cent,” he said.

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