20 september 2003
decree to rnbcs on nre deposit rates
mumbai: the reserve bank of india has said that
interest rates on fresh repatriable nre deposits accepted
from non-resident indians by residuary non-banking companies
(rnbcs) must be in line with the interest rates offered
by scheduled commercial banks and non-banking finance
scheduled commercial banks can pay interest on these deposits
contracted in india for one to three years not exceeding
100 basis points above the libor/swap rates for the us
dollar of the corresponding maturity on new repatriable
nre deposits. rnbcs are not allowed to accept deposits
for a period less than one year with the maximum period
set at three years.
says genuine dollar inflow will continue
mumbai: market participants across the board are
optimistic about the long-term outlook of the rupee-dollar
exchange rate, say reports. while genuine inflows will
continue to grow, funds coming in for pure interest rate
advantage will recede, dealers were quoted as saying.
they said despite the recent central bank measures, nothing
much seems to have changed to create such a volatility
both in the forex and the inter-bank money markets.
"india is an attractive market and on a medium term
outlook, the rupee is expected to remain firm. but in
the short term, foreign exchange inflows on a daily basis
will tend to slow down. since the rupee is fairly valued,
as per reer, it is likely to exhibit two-way volatility
depending upon export cancellations and outflows owing
to the resurgent india bond (rib) redemption on one hand
and reduced inflows on the other," said m a ravikumar,
regional head, global markets, standard chartered bank.
pnb in race for big bull's 11% acc stake
mumbai: the late harshad mehta's 11-per cent holding
in cement major acc, which will be out for open bidding
from the custodian's shelf shortly, is attracted new bidders.
along with old bidders like lic and a few private players,
including mehta's shell companies, some new entrants which
are joining the fray to pick up the shares are the two
large domestic state-owned commercial banks - state bank
of india (sbi) and punjab national bank (pnb).
sources were quoted as saying that sbi and pnb are interested
in bidding for this holding. market sources pointed out
that though these two banks cannot invest more than 5
per cent of their total investment in equities under the
prudential guidelines, the attraction of a blue-chip company
and the available lucrative bid price are believed to
be the two key motivating factors for these banks to join
the bidding bandwagon.
19 september 2003
eases advance remittance norms
mumbai: the reserve bank of india has liberalised
the procedure for advance remittance by authorised dealers
of over $100,000 or equivalent without bank guarantee
for import of goods into india.
overseas firms on par with foreign investors'
mumbai: the reserve bank of india has today permitted
overseas entities owned by non-resident indians (nris)
to enjoy all the facilities available to any foreign investor,
including automatic route for foreign direct investment.
however, these entities will not be able to enjoy any
special facilities such as holding nre, nro, fcnr(b),
savings or current accounts.
outflows will not impact markets
mumbai: with the resurgent india bonds redemptions
just a fortnight away, the reserve bank of india has reiterated
that ` no cognisable impact' is anticipated in the financial
markets on account of the dollar outflow.
kochi: all branches of sbi in kerala will be fully
computerised soon, mr c. narasimhan , chief general manager,
kerala circle, said while inaugurating the full branch
computerisation of the ernakulam south branch.
bajaj auto sign pact
mumbai: state bank of india and bajaj auto ltd
on thursday announced a strategic tie-up to offer loans
for its two-wheeler customers.
the two entities signed an agreement entering into a preferred
relationship for extending consumer finance all across
in pact with sbi caps
mumbai: life insurance corporation of india (lic)
has entered into a strategic alliance with sbi caps to
avail of the merchant banker's investment banking and
project advisory services.
18 september 2003
inc covering $10-bn short forex positions
mumbai: corporate india has started covering gross
forex short positions, estimated at a staggering $10 billion
or so and testing the waters by taking on fresh long positions
on the dollar in anticipation of a dip in the rupee in
senior dealers say that export-dollar cancellation is
also rearing its head in a market with heavy "oversold"
corporatising plan in full swing
new delhi: preparatory work for transforming the
industrial and development bank of india (idbi) into a
universal bank was apace in anticipation of passage of
the bill pending before parliament. banking secretary
ns sisodia told fe that "we need not wait further
once the idbi bill is passed," adding that the government
and the bank were going ahead with all preliminary work
needed for corporatising idbi.
16 september 2003
cuts nre deposit rate cap
mumbai: in a significant step, the reserve bank
has said the interest rate offered on non-resident (external)
rupee deposits will now be capped at 100 basis points
(bps) over the london inter-bank offered rate (libor).
this is a sharp 150 bps reduction from the earlier ceiling
of 250 bps over libor, announced on july 17 this year.
to advise dcb on capital raising plan
mumbai: expecting the regulations to permit foreign
direct investment in domestic private sector banks up
to 74 per cent, the development credit bank (dcb) has
appointed global consultancy firm ernst & young (e&y)
to advise on the bank's capital raising plan.
"the regulatory environment in respect of foreign
direct investment limit in domestic private sector banks
is likely to change and the e&y will advise on financing
options for the given scenario and regulatory environment,"
dcb managing director hv sheshadri said.
housing raises $5 m through ecbs
new delhi: pnb housing finance ltd has raised $5
million by way of external commercial borrowings (ecbs).
the deal was arranged by standard chartered bank.
according to a release, the company proposes to raise
a total of $25 million through the ecb route. negotiations
for the remaining $20 million are in an advanced stage.
the company would also raise another rs 250 million by
way of commercial paper.
bank named bank of year
mumbai: icici bank been chosen as the `bank of
the year 2003' in india and has won the `best multi-channel
strategy 2003' in the banker awards 2003.
the award is given by the banker magazine, the global
finance magazine of the financial times group of uk.
housing finance sanctions up 47 per cent in april-august
chennai: lic housing finance's sanctions till the
end of august this year, at rs 1,729,85 crore, were up
47.36 per cent over the corresponding period of last year.
disbursements grew by 61.7 per cent, to reach a figure
of rs 1,545.26 crore, the company's ceo and director,
mr s c jain, said here.
to computerise all branches by next year
visakapatnam: state bank of mysore (sbm) will computerise
all its 615 branches by the end of june 2004, and the
first phase of branch networking covering 300 major branches
will also be completed by that time, mr m. sitarama murty,
managing director, has said.
hc declines to set aside order on winding up of finance
co - appoints administrator
chennai: the madras high court has refused to set
aside the order for winding up of the chennai-based fidelity
finance ltd. it ordered appointment of a full-time administrator
to recover the amounts due to the company in liquidation
from various borrowers in the interest of the litigant
bank of india for agri-priority survey
mumbai: the central bank of india has initiated
a household economic survey in the 26,000 service area
villages for offering need-based productive finance as
part of boosting its direct agricultural advances to 13.5
per cent by march 2005. the bank is targeting to disburse
rs 1,100 crore of advances through this channel to farmers
during fiscal 2003-04.
in tie up with uco bank
new delhi: leading tractor maker escorts ltd on
tuesday launched a special tractor finance scheme for
farmers in association with uco bank.
the `uco escorts krishi jyothi' scheme would provide 100
per cent finance facilities to buyers of escorts tractors
without requiring any fixed deposit from them, a company
signs pact with oriental bank
new delhi: small industries development bank of
india (sidbi) and oriental bank of commerce (obc) have
entered into a memorandum of understanding to work together
on projects related to the small-scale, infrastructure
and service sectors.
homefinance slashes rates by up o 150 bps
mumbai: dbi homefinance ltd, which is the new name
of the tata homefinance ltd after the takeover by industrial
development bank of india (idbi), has reduced its variable
home loan rates by up to 150 basis points (bps). the revised
rates will be effective from september 17, 2003.
discourages repatriable bank deposits
mumbai: late on monday, the reserve bank of india,
in a sudden move, capped the rates on nre deposits at
libor plus 100 basis points. earlier the spread allowed
was 250 basis points.
rbi asks iba to prepare report on plr system
mumbai: the reserve bank of india has asked the
indian banks' association (iba) to formulate a report
on the methodology to be adopted for making the prime
lending rate more transparent to customers.
15 september 2003
bank to collect central excise, service tax
bangalore: the central board of excise and customs
(cbec) has nominated corporation bank to collect central
excise and service tax in the bangalore commissionerate
ii region. the regions falling under this commissionerate
include bangalore cantonment, yelahanka, doddabalapur,
tumkur, chitradurga, davangere harihar, and rannebennur.
branches located in these regions would collect the taxes.
the bank was already collecting these taxes in the mangalore
commissionerate since 2001 and in dakshina kannada district
on behalf of the department, the release added. officials
of cbec had conducted a workshop to train personnel of
corporation bank's branches on the procedural aspects
of the tax collection and their subsequent remittance
to the government with speed and accuracy. the bank has
already been collecting direct taxes on behalf of the
government since march 2000 at 270 branches across the
country. further, the bank also handled the pension payments
for retired personnel of both the central and state government
in more than 400 branches all over the country.
bank opens new atm in coimbatore
coimbatore: icici bank has activated its 25th atm
in coimbatore city. the atm, installed at the bpcl retail
outlet on the avinashi road here, was inaugurated by the
drt (debts recovery tribunal), coimbatore presiding officer,
ashok c parkash.
bank of saurashtra, maruti, join hands in gujarat
ahmedabad: maruti udyog has entered into an alliance
with the state bank of saurashtra (sbs) to try and tap
potential customers in the saurashtra-kutch belt and other
parts of gujarat. sbs has announced the slashing of interest
rates by 0.5 per cent, from 10.25 per cent to 9.75 per
cent for three-year car loans. s k singh, chief general
manager, sbs, said the reduced rates will be applicable
only for maruti car loans. this package also include loans
over three years wherein the interest rates will stand
reduced from the present level of 11 per cent to10.5 per
thus, the emi per rs 1 lakh will henceforth be rs 1,686,which
means a reduction by rs 30 for a seven-year loan, singh
said. this is the latest such effort at going in for an
exclusive tie-up with a state bank by mul in a bid to
carve out a regional niche for the marketing of its vehicles.
three such recent forays had come in july with mul tying
up with the state bank of mysore, state bank of indore
and the state bank of travancore.
hc clears centurion restructuring plan
mumbai: the bombay high court (goa bench) has approved
the scheme of arrangement filed by centurion bank for
restructuring and recapitalisation of the bank. the scheme
also envisages merger of the bangalore branch of bank
muscat with centurion bank. bank muscat has filed the
requisite petition with the karnataka high court and the
hearing is scheduled for 10 october 2003. centurion bank
has valued bank muscat's bangalore branch at rs 45 crore.
the reserve bank of india (rbi) had, on 22 august, given
its in-principle approval for the restructuring of the
equity of centurion bank. the investors led by sabre would
bring in rs 129 crore, while existing investors such as
the asian development bank (adb) and keppel bank of singapore
will bring in rs 25 crore, taking the capital infusion
to rs 154 crore. in the next phase, there will be a rs
65 crore public cum rights issue. bank muscat will invest
rs 75 crore, including the merger of its bangalore branch
operations, in centurion bank.
list of reports
on finance diary