GAIL to raise ECBs
Mumbai: GAIL (India) is set to raise $100 million external commercial borrowings to meet its capital expenditure needs, a senior official said on the sidelines of a news conference announcing sale of Union Government's 10 per cent stake in the company.

"We plan to add 50,000 tonnes through de-bottlenecking to our three lakh-tonne petrochemicals capacity over the next two-three months. Over the next two years, we plan to add a total 1.2 lakh tonnes to its present capacity," Mr J.K. Jain, Director (Finance), told reporters.

New Holland Tractors, Oriental Bank in pact for finance schemes
New Delhi: New Holland Tractors (India) has partnered with the Oriental Bank Of Commerce (OBC) to offer finance schemes for New Holland tractor customers.
Under the scheme, named OBC-NHI Agri Machinery Loan Scheme, farmers can avail themselves of a special rate of interest of 10.25 per cent for loans up to Rs 2 lakh and 11.25 per cent for loans over Rs 2 lakh. The loan is repayable in convenient half-yearly instalments spread over five-nine years.

RTGS undergoing trial run with 4 banks
Mumbai: The real time gross settlement system (RTGS) is currently undergoing a trial run with the participation of four banks, one from each sector.

The `critical and complex' RTGS system is being implemented in two phases in India, said an RBI press release.

enStage e-payment solution for banks
Bangalore: Enstage has announced its plans to set up a BPO unit in India. It also launched Accosa, an e-payment solution for banks, with HDFC Bank as its first customer.

The BPO unit is targeted at Indian banks and institutions to enable them to deploy Accosa, said Mr Govind Setlur, CEO.

Rupee gains slightly
Opening at Rs 45.2550/2625 per dollar, the rupee is currently quoted at Rs 45.2450/2550, higher from yesterday's finish of Rs 45.26/27.

20 February 2004

CUB targets Rs 10,000 crore business
Coimbatore: City Union Bank Ltd is set to achieve a business of Rs 10,000 crore by 2007.

The bank is targeting to double its business within the next three years.

The total business at present is Rs 4,400 crore, with deposits at Rs 2,700 crore and advances at Rs 1,700 crore. The bank has targeted of a business volume of Rs 5,000 crore in the current fiscal.

UCO Bank reduces crop loan rates
Kolkata: UCO Bank has reduced its interest rate on crop loans by half a percentage point. Effective March 1, loans up to Rs 50,000 will carry an interest rate of 8.5 per cent.

Loans between Rs 50,000 and Rs 2 lakh will carry a rate of 9.5 per cent, a press release issued here noted. The bank will also extend more incentives to senior citizens by increasing to one per cent the additional interest payable on their deposits from 0.5 per cent.

Vijaya Bank launches Bangalore card
Bangalore: Vijaya Bank has launched Bangalore card in association with Visa. This card is aimed at account holders with Vijaya Bank's Bangalore branches and customers across Karnataka.

RBI closes on-tap sale of 2015 loans
The Reserve Bank of India (RBI) has closed the on-tap sale of 5.85 per cent 2015 loans of eight state governments after receiving the target amount, on the first day of the sale. It will continue its sale for nine more states on Friday. The total target sale amount is Rs 42 billion.

19 February 2004

BoB raises rates for senior citizens
Mumbai: Bank of Baroda (BoB) has revised upwards the interest rates for term deposits of senior citizens for various maturities with effect from March 1.

Nabard launches Rs 50, 000 crore fund
Mumbai: Nabard has launched the Rs 50,000-crore Lok Nayak Jai Prakash Narain Fund for agriculture infrastructure and credit as announced in the interim Budget.

The existing Rural Development Infrastructure Fund, managed by Nabard, will come to an end. The resource mobilisation for the new fund will be from banks having shortfall in agriculture lending. About Rs 12,000 crore will be mobilised for the first year of operation through this route, Nabard said in a release.

Allahabad Bank to distribute ECGC products
Kolkata: ECGC Ltd yesteray signed a bancassurance agreement with Allahabad Bank for sale and marketing of its various insurance products to Indian exporters.

18 February 2004

Rupee down five paise
Mumbai: As the dollar gained strength in the global markets, the rupee fell against the greenback by about 5 paise to close on Monday at 45.30. The rupee on Monday opened at 45.28/29 with the intra-day high being 45.27.

SIB ties up for rupee drawing arrangements
Kochi: In a move that is expected to hasten clearance of demand drafts and remittances between the bank customers in Dubai and those in India, the Thrissur-based South Indian Bank has entered into a tie-up with Wall Street Exchange Centre, LLC, for the commencement of rupee drawing arrangements. Wall Street Exchange Centre, LLC, is an established exchange house in Dubai. The speedy remittances will cover all the networked branches and the beneficiaries' accounts will be credited within 24 hours of the remittance from abroad. The bank has thus far concluded remittance arrangements with 14 reputed exchange companies and three leading commercial banks in the Gulf countries.

United Bank ties up with Tata AIG
Mumbai: Under a tie-up, UBI will offer the entire range of life insurance products of Tata AIG to its customers through its branch network. The bank has a network of over 1,300 branches, of which over 600 are located in rural areas. The insurance products have been simplified for the rural masses.

GOI 2019 paper auction on Feb. 26
Mumbai: The Government of India has announced the price-based auction of a 5.64 per cent 2019 paper, totalling Rs 5,000-crore, on February 26. Up to five per cent of the notified amount of the sale of the stock will be allotted to eligible individuals and institutions as per the scheme for non-competitive bidding facility in the auction of the government securities, said a press release.

RBI proposes market stabilisation bonds
Mumbai: The RBI has proposed to the Government of India to authorise issuance of existing debt instruments such as treasury bills and dated securities under the Market Stabilization Scheme (MSS).

According to the RBI, the total outstanding obligations of the Government by way of bills and securities issued under the MSS, will not exceed Rs 60,000 crore, for the present. The bills and securities will be issued by way of auctions to be conducted by RBI. The central bank will decide and notify the amount, tenure and timing of issuance of such treasury bills and dated securities.

StanChart launches EMI credit card
Mumbai: The Standard Chartered Bank has introduced an EMI credit card which provides customers a `hassle-free' payment schedule by automatically converting all purchases into 24 equated monthly instalments (EMIs). Purchases and payments can be made by swiping the new EMI card and the amount would automatically get converted into 24 EMIs, thereby eliminating all the attendant trouble of phone calls, paperwork, down payment, post-dated cheques, etc. An interest rate of two per cent per month would be charged on the outstanding amount as against the 2.95 per cent charged on the regular credit card. Any transaction through this card above Rs 2,000 will automatically be converted into EMIs and behave like an unsecured personal loan.

17 February 2004

Sivasankaran in pact to sell TMB shares
Chennai: Representatives of the Nadar community entered into an agreement yesterday with Mr C. Sivasankaran, Chairman of Sterling group, to buy 34 per cent of the equity of Tamilnad Mercantile Bank from him.

India pre-pays ADB loans
Mumbai: India has pre-paid a portion of its foreign currency loans to the Asian Development Bank amounting to 123.11 billion Japanese yen (Rs 5,294.84 crore).

Ramesh Gelli back in GTB Board
Mumbai: The board of Global Trust Bank yesterday approved the proposal for inducting Ramesh Gelli to the bank's board.

16 February 2004

Indian Bank to fund SHGs in North
Madurai: Indian Bank has plans to funs self help groups (SHG) in the North, said Mr M.B.N. Rao, Chairman and Managing Director of the bank.

APSFC to sell insurance products
Hyderabad: The Andhra Pradesh State Financial Corporation (APSFC) is planning to enter the arena of insurance products marketing by taking advantage of its strategic tie-up with IFFCO-TOKIO General Insurance Company.

Fees payment through SBM ATMs
Bangalore: State Bank of Mysore plans to use its channel of ATMs to facilitate payment of school and college fees, utility bill payments and recharging of SIM cards.