13 february 2000

industrial index up 6.2% in 9 months
new delhi: the country’s industrial growth rate in the period april-december 1999 was 6.2 per cent, against 3.7 per cent in the first three quarters of 1998-99. the strongest contribution to this growth came from a sharp, 11.9 per cent growth in consumer durables, against 3.8 per cent to 11.9 per cent in the year-earlier period.

growth in december 1999 was, however, 5.2 per cent, against 4.3 per cent in december 1998. while consumer durables grew 10 per cent, the performance of the capital goods and consumer non-durables sectors was poor.

insurance rules for banks in 6 months: jalan
mumbai: the reserve bank of india’s guidelines for the entry of commercial banks into the insurance sector should be finalised in six months, rbi governor bimal jalan is reported to have told the press. the central bank has already issued draft guidelines with a view to getting feedback from the banks.

according to the draft guidelines, a bank entering the insurance sector must have a 10 per cent capital to risk-weighted asset ratio, and a non-performing asset level of one percentage point below the industry average of 7.5 per cent. that will disqualify most banks.