Budget 2011 Highlights2

• Rs6000cr allocation for improving tier-I CAR of PSU banks - positive for PSU banks
• Increase in Rural Infrastructure fund from Rs16,000cr to Rs18,000cr
• SIDBI to receive additional Rs5,000cr shortfall from banks
• SIDBI to receive additional Rs5,000cr shortfall from banks that missed priority sector lending norms, Positive for irrigation companies and farmers
• Housing sector - 1% on housing loan subvention, +ve for cement sector
• Priority sector home loan limit hiked to Rs25lakhs from Rs20lakhs
• Increased housing finance for rural areas, Positive for cement sector
• Interest subvention of 1% on housing loan increased from Rs10lakh to Rs15lakh - postive for mid-income housing - benefit to developers like HDIL, Godrej Properties
• Increased investment in Infra Corporate Bonds to FII - postive for infra, cement and banks
• Credit flow to farmer increased from Rs3.75lakh crores to Rs4.75lakh crores for FY2012. Positive for agri-input companies (United Phosphorus)