20 july 2001
sbi to merge loss-making branches in
ahmedabad: the countrys largest commercial bank,
state bank of india, has begun its post-vrs restructuring programme. under this the bank
plans to merge 440 loss making branches and virtually eliminate its network of regional
offices across the country.
it is also working towards redploying additional administrative manpower to frontline
banking jobs, in line with practices followed by private sector banks.
the bank management has asked all its 13 circle offices to
initiate the process and start merger of loss making branches in their respective areas.
apart from merging of loss making branches, sbi has also decided to reduce its regional
office network as a part of its downsizing programme. the bank is planning to reduce its
regional offices from 10 to one or two in each circle.
saraswat bank in alliance talks
mumbai: in an attempt to spruce up its customer services,
private sector bank, saraswat bank, is said to be in talks with other leading private
sector banks, hdfc bank and icici bank, to strike a strategic alliance.
it is understood that saraswat bank will select either hdfc bank or icici bank for an
alliance that is aimed at providing services in the areas of insurance, correspondent
banking arrangement for drawing of demand drafts, pay-orders and at-par facility, and
money management, amongst others.
it is believed that such an alliance will bring about greater cooperation between the two
banks and provide greater convenience and value-added services to a banks customers.
19 july 2001
psu banks form rs
2,000-cr us-64 bailout package
mumbai: eight state-run commercial banks
including state bank of india (sbi) punjab national bank, bank of baroda, bank of india,
central bank of india have reiterated their decision to form a consortium to fund the
bailout package of between rs 1,500-2,000 crore for investors of unit trust of
indias (uti) flagship scheme us-64, following a meeting with its new chairman m
this would be done through a six months to one-year collateralised back-stop facility.
the pricing would depend on the quality of collateral pledged with the banks, which would
be inclusive of both equity and debt. individual banks would decide upon the specific
stocks against which they would lend to uti.
these commitments were mainly stand-by arrangements in case uti required liquidity support
to pay out investors who wanted to exit us-64.
jp morgan lowers india's gdp growth forecast
mumbai : jp morgan has lowered its estimate of india's gross domestic product
growth for the current financial year to 5.3 per cent from its earlier forecast of 6.0 per
cent due to sluggish demand. the firm is also trimming its forecast for 2002-2003
(april-march) to 6.2 per cent from the earlier 6.5 per cent.
official indian government figures point to a slowdown, with the indian economy expanding
by an estimated 5.2 per cent in the year to march, down from 6.4 per cent the previous
jp morgan said it expected agricultural and industrial sectors to rebound mildly leading
to a turnaround in the economy in october, but the distribution of rainwater from a good
monsoon will be crucial. but it says that a 2.6 per cent year-on-year growth in
agriculture was plausible on the basis of a low base and preliminary monsoon news, which
would lead to a rebound in industrial activity.
16 july 2001
all investors can use us-64
mumbai: the repurchase window of the unit scheme
1964 (us-64) of the unit trust of india will be open to all investors from august 1, 2001.
the repurchase, however, has been restricted to a limit of 3000 per unit holder as on june
30, 2001, and is subject to a repurchase price schedule from august 1, 2001.
at a meeting held on sunday, chaired by the
new chairman, m damodaran, it was decided that uti will continue to repurchase units from
unit-holders till may 2003 based on the net asset value (nav). the schedule adds an
incremental 10 paise every month from the benchmark of rs 10 in august 2001 to rs 12 in
us-64 will fully reopen for fresh sales and repurchases at
nav-based prices with effect from january 1, 2002. thereafter, for 3000 units per
unit-holder the repurchase price would be the either the administered repurchase price or
the then prevailing nav based repurchase price, whichever is higher.
the bail-out plan for small investors was finalised by the government, in consultation
with the four member consultative group set up to advise on exit options for small
investors in us-64 and top uti officials, over the weekend.
uti has already finalised a rs 3000 crore bail out package
from a consortium of banks and financial institutions.
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