13 July 2002
Dividend for Cangilt investors
Mumbai: Canbank Mutual Fund has declared the eleventh tranche of its income distribution in the Cangilt (PGS) scheme under the income plan. Investors under the scheme are now eligible for 3 per cent on the face value of Rs 10.
Kalpatharu Grameena Bank to target non-farm sector - Hopes to post Rs 5-cr profit
Bangalore: The Kalpatharu Grameena Bank plans to wipe out accumulated losses of over Rs 2.75 crore and make a profit of Rs 5 crore this year. To this end, the bank is focussing on the non-farm sector in Bangalore Urban and Bangalore Rural districts
RBI gets tough with banks - Lending rate disclosure to be made mandatory
Mumbai: The Reserve Bank of India has decided to make it mandatory for all commercial banks to disclose their maximum and minimum lending rates, including sub-PLRs, on a fortnightly basis.
RBI directive on return of deposits
Mumbai: Non-banking non-financial companies do not have to submit their return of deposits to the Reserve Bank of India, a press release has said.
Foreign currency a/c norm for SEZ unit relaxed
Mumbai: The Reserve Bank of India has permitted a unit located in a special economic zone (SEZ) to open, hold and maintain a foreign currency account with an authorised dealer in India.
SBI tightens norms for corporates
Mumbai: In the wake of a series of international accounting scandals, the State Bank of India (SBI) has tightened due diligence procedures on corporate borrowers.
Cleaning up process again for revamp - IFCI orders NPA categorisation
Mumbai: Cleaning up work has started at IFCI Ltd. With fresh lending coming to a virtual halt for some time on account to acute liquidity crisis, the focus has clearly shifted towards tackling the crippling burden of past non-performing assets
Securities lose early gains
Mumbai: The RBI on Friday announced an auction of a new 10-year paper worth Rs 3,000 crore on July 17, with a `call and put' option. There is another 8.07 per cent 2017 paper worth Rs 4,000 crore for auction on the same day.
`Ordinance must help recover problem assets'
Mumbai: Fitch Ratings India has said that the ordinance on securitisation may lead to an improvement in the financial position of lenders, especially if its implementation prompts more recoveries of their "problem assets'.
Deposit rate cut likely
Mumbai: While the new Finance Minister, Mr Jaswant Singh, has given some hope to the people with his now-famous `more money in the housewife's purse' remark, banks in the country are thinking of reducing the deposit rates
Rabo India Fin to set up retail bank with agri focus
Mumbai: Rabo India Finance, Indian arm of Dutch co-operative major Rabobank, will set up a separate commercial and retail bank shortly to accelerate giving credit facilities to the agri sector and is also having talks with Nabard for a series of joint activities.
Firm rupee unlikely to hit exports
Mumbai: A stronger rupee is unlikely to hurt Indias exports this year as accelerating global growth could ensure greater demand, while cheaper imports could help a nascent industrial recovery at home.
ADB wants to sell 14% stake in SBI Caps
Mumbai: Asian Development Bank (ADB) is exploring the possibilities of selling its 14-per cent stake in SBI Capital Markets Ltd, the investment-banking arm of State Bank of India (SBI).
ADB has informally informed SBI of its intention to exit from SBI Caps. But no final decision has been taken so far. Currently SBI holds 86 per cent of equity in SBI Caps and the remaining 14 per cent is held by ADB, which took the stake at Rs 89 per share a few years ago.
Sources familiar with the development say ADB picked up stake in SBI Caps under the condition that the investment bank would go public after some years of its operations. But even after 16 years since its commencement, the SBI subsidiary has not been able to announce its initial public offering.
ADB feels under the current circumstances, SBI Caps will not go public in the near future. Besides, for the past few years, the business volumes of SBI Caps have reduced considerably. The merchant bank had plans for a public issue in 1997, which would have reduced SBIs stake to 51 per cent before this fiscal. However, this was put on the backburner owing to difficult market conditions at that time.
ADB, which had shown keen interest in picking up stake in Industrial Finance Corporation of India (IFCI) recently, has put IFCI privatisation as a precondition for picking up stake. The sources say SBI Caps is still globally hunting for a strategic partner, an exercise started around five years back.
The investment bank is still looking at all options, including strategically placing a portion of its equity with a foreign investment bank, to cash in on the increased international activities of the domestic companies and their desire for an increased global presence, the sources add.
Currently all leading domestic merchant bankers, except SBI Caps, have tie-ups with foreign investment bankers, and this has helped them in cornering the bulk of the overseas business of Indian companies. Kotak Mahindra has tied up with Goldman Sahchs, JM Financials has a joint venture with Morgan Stanley and DSP has a partnership with Merrill Lynch.
