23 february 2002
bank to challenge drt ruling on shcil
bank plans to challenge the order of the debt recovery tribunal
which vacated an interim order attaching properties of stock
holding corporation of india ltd (shcil).
the bank will appeal to the appellate authority of the tribunal
challenging the recent order of the kolkata bench. the order,
while vacating its previous interim order, said the merits of the
case did not warrant the protection it had sought through
attachment as the assets and properties of shcil appear to be
sound and satisfactory
corpn bank to sell
lic mutual products
mumbai: corporation bank has tied up with lic mutual fund
to market the fund's products through its branches.
the arrangement will
initially cover four open-ended schemes - licmf bond fund, licmf
g-sec fund, dhanaraksha-89 and licmf children's fund.
licmf has a corpus of rs
2,400 crore and manages eight close-ended and eight open-ended
schemes. it had mobilised around rs 4,000 crore as on 31 january
uti bank to make
allotment to aig
new delhi: the
uti bank is set to make a preferential allotment of fully
convertible debentures, not exceeding rs 50 crore to the
infrastructure fund of aig as part of the move to cut the stake of
its promoter, uti to 40 per cent in the bank.
in september last year,
two funds owned by cdc capital partners bought a 26 per cent stake
for a consideration of rs 156 crore. the preferential allotment
was made at rs 34 per share, resulting in a dilution of the uti's
holding to 44.88 per cent.
with the proposal to
issue convertible debentures to aig, uti bank will now be well in
line to comply with the rbi directive to limit the holding of the
promoter group in a bank to 40 per cent.
japan bank okays rs
new delhi: japan
bank for international cooperation has sanctioned a rs 2,040-crore
loan to india for financing the mrts project in delhi and ntpc's
simhadri thermal power station in andhra pradesh.
out of the total loan,
27,473 million yen would be for funding the mass rapid transport
system project (iii) being constructed by delhi metro rail
corporation ltd (dmrcl), an official statement from jbic said. the
remaining 28,659 million yen will be for financing the simhadri
thermal power station project (iii) of ntpc.
the loans carrying
an interest rate of 1.8 per cent would have a repayment period of
30 years and a grace period of 10 years.
exposure limit for all core projects
reserve bank of india (rbi) has allowed banks and financial
institutions to exceed the cap of 50 per cent group exposure by 10
percentage points for all infrastructure projects.
in the income tax act, 1961, infrastructure includes power, roads,
highways, bridges, ports, airports, rail system, water supply,
irrigation, sanitation and sewerage system, telecommunication,
housing and industrial parks.
the rbi has also relaxed
the guarantee norms for the infrastructure projects. banks with
funded exposure of at least 5 per cent of the total project cost
can now issue any amount of guarantees in favour of other lending
rbi to decide on
bank rate after budget
new delhi: reserve bank will take a view on further
revising interest rate only after presentation of the union budget
on 28 february.
last year, rbi had slashed rates a day before the budget
presentation and then again in march first week following a
reduction in small savings rates by the government.
the bank rate, the rate at which banks obtain refinance from the
cenral bank, was further slashed by 0.5 per cent to 6.5 per cent
in busy season credit policy in october. cash reserve ratio (crr)
was also cut by two per cent to 5.5 per cent.
kameswara rao made
mumbai: the board
of directors of industrial development bank of india (idbi) has
elevated k. kameswara rao, chief general manager, to the position
of executive director.
rao is currently in
charge of economic research, budget and planning at the
development financial institution. he has now been designated
economic advisor of idbi. his new portfolio would be allocated
hdfc bank to open
office in dubai
hdfc bank will open a representative office in dubai shortly.
the office will canvass corresponding banking business and market
nri business products in the uae.
hdfc has a customer base of 5,500 people in the gulf who have
taken housing loans totalling rs 400 crore since 1996.
bank credit up by
rs 1,265 cr
credit has increased by rs 1,265 crore to touch rs 5,70,090 crore
for the fortnight ended 8 february 2002, according to the reserve
bank of india.
this is inclusive of food
credit, which increased by rs 301 crore to touch rs 54,981 crore
and non-food credit which rose to rs 5,15,109 crore for the same
provided by scheduled commercial banks to the commercial sector in
the form of bank credit and investments in shares, debentures ,
bonds and commercial paper has gone up by rs 46,938 crore to rs
5,95,238 crore for the fortnight ended 8 february 2002.
kapur to head
western union in india
western union financial services has appointed anil kapur as
indian community is one
of the largest markets for western union globally. in the last six
years, the company had made substantial progress in the country
with prestigious partners.
western union is in the
process of expanding its network and services by opening more
offices across the country. it is also considering the
introduction of other value-added services, including domestic
22 february 2002
ifci sells dfhi,
stci stakes to idbi
ifci has sold its 3.01 per cent share in securities trading
corporation of india and another 2.75 per cent stake in discount
& finance house of india to idbi for a rs 33.27 crore.
the delhi-based financial institution sold its holding in dfhi and
stci through a negotiated deal with idbi.
ifci sold 15.05 lakh shares of stci with a face value of rs 100
per share at rs 135 a share, collecting rs 20.32 crore.
the fi also sold 5.51 lakh equity shares of dfhi having a face
value of rs 100 at a hefty rs 235 a share, mopping up rs 12.95
ing vysya life
plans forays into pension sector
ing vysya life insurance is planning to enter the pension sector
besides coming out with an attractive whole life insurance
product, reward, this year.
the company, which at present had an initial capital of rs 110
crore and an authorised capital of rs 200 crore, is planning to
pump in another rs 90 crore this year into the business.
the company, which at present had its presence in mumbai,
bangalore, delhi and chennai, is expected to have its operations
in at least 20 cities by the end of 2002
citi bank, abn
evince interest in bop
bank of punjab is in talks with some foreign banks and a couple of
foreign institutional investors for sale of equity stake in the
citibank along with abn amro are amongst the few banks that are
looking at the portfolio of the bank of punjab.
21 february 2002
hdfc standard life
launches personal pension plan
hdfc standard life insurance company ltd has launched its personal
pension plan designed to offer customers financial security after
under this plan, a customer can choose to pay a single or regular
premium during the savings period and on retirement the
policyholder becomes entitled to the sum assured plus the
only a part of this entitlement can be taken in cash, subject to
prevailing regulations, while the rest can be converted to an
annuity, which would provide pension to the policy holder for
the insurance company is also looking at introducing group pension
products later in the year.
20 february 2002
sbi lowers rates on
state bank of india has slashed interest on personal loans by 150
basis points at 14.5 per cent per annum from 16 per cent.
sbi has also reduced the interest rates on car and two wheelers
loans by one per cent at 13 per cent while it has done away with
processing fee in case of the former. the rate cut on personal
finance products was with effect from this month.
loans against mortgage of property can now be availed at 14 per
cent per annum, cut by two per cent. rate for loans against rbi
relief bonds and shares & bonds have also been reduced to 12
per cent and 14.5 per cent respectively from 15 per cent.
senior citizens have been offered a hefty cut of 225 basis points
for loans to pensioners at 14 per cent per annum (16.25 per cent
demand loans sanctioned against the security of national savings
certificates and kisan vikas patras would now be cheaper by three
per cent at 12 per cent. loans against indira vikas patra would
now cost 13 per cent interest, which was cut by 200 basis points.
the bank said interest rates on loans against security of
surrender value of lic policy have been reduced to 13 per cent
from 15 per cent while loans against life insurance policies of
sbi life, its own subsidiary, would cost 12.5 per cent.
interest on loans against security of gold ornaments have been cut
by 100 basis points at 14 per cent, sbi added.
19 february 2002
rbi warns against
bharti shares purchase
the reserve bank of india has directed the fiis, non resident
indians and persons of indian origin against the purchase of
bharti tele-ventures shares without its prior approval.
no further purchases of
btl shares should be made on behalf of fiis, nris or pios under
the portfolio investment scheme without obtaining prior clearance
from the apex bank, rbi said in a release.
the net purchases of
bharti in secondary markets have reached the limit of 47 per cent
of its paid up equity capital, rbi added. bharti on monday listed
itself at the bombay stock exchange with an opening price of rs 50
18 february 2002
rbi finds huge
diversion of bank funds
new delhi: the reserve bank has detected diversion of funds
by over 1,000 companies in the last 10 years mostly from banks
like oriental bank of commerce, canara bank, andhra bank, indian
bank, sbi and its associates.
obc topped the list with 125 companies diverting its loans to
other than working capital needs, followed by canara bank and
andhra bank (69 each), indian bank (63), sbi (41) and its
psu banks in total accounted for over 70 per cent of the cases
where there was fund diversion by corporates.
the incidence of fund diversion was also high in case of some of
the private banks like tamil nadu mercantile bank (70), nedungadi
bank (29), development credit bank (28), south indian bank (26),
icici bank, bank of rajasthan and lord krishna bank (20 each).
private banks accounted for about 25 per cent of the cases of fund
rbi also detected over 75 such irregularities with foreign banks
mostly in case of standard chartered grindlays bank, citibank,
hsbc and bank of tokyo and mitsubishi.
media lab seeks
world bank funding
new delhi: media lab asia, a network of labs modelled on
mit media lab to develop technology for the masses, is in talks
with the world bank and the asian development bank for rs 5,000
crore grants, to invest in rural infrastructure and services over
a period of 10 years.
mla, which has been registered as a non-profit organisation with
seed funding of rs 65 crore by the government of india, is also in
talks with leading foundations like ford and rockfeller to finance
its research projects.
over 200 researchers are expected to work on projects like
low-cost computing devices, health and rural communications
mla has already tied up with iit kanpur and chennai for setting up
labs. its ongoing talks with iit mumbai and delhi for the same are
expected to be finalised soon.
go to finance diary index page