RBI restriction - funding revaluation reserve, Banking - Finance

[Giri Shanmugam]

Dear Colleques We are in the process of valuing land. The land was bought for Rs 10 crores and the market valuation as of today is 140 crores.One of the conditions stipulated by bank for project finance is equity to debt. On valuation the difference of Rs 130 crores has to be credited to revalaution reserve which can not be treated as equity by the bank. How to overcome this? Is there restriction by Reserve Bank of India on the banks in funding revalaution reserve. Please guide me.

Posts / Replies

[D Gupta]

I think the query requires a detailed and in depth examination before getting any answer to the query.