|
Banks to obtain RBI okay for investment
Mumbai: The Reserve Bank of India has told
all commercial banks that they should obtain prior permission from it to participate in
the equity of any financial service company.
Banks
will have to get RBI approval even if the investments are within the ceiling set by the
Banking Regulation Act 1949.
Back to News
Review index page
RBI considering ED for FMCG
sector
Calcutta: The Reserve Bank of India is
toying with the idea of appointing an executive director for non-banking finance
companies. This move will be in line with the Vasudev Committee recommendations.
The name of Romesh Lal, executive director, Dena Bank,
figures among those under consideration for the post.
A separate executive director for NBFCs is being
considered keeping in mind the sensitive nature of the sector and the problems faced by
the regulator.
Back to News
Review index page
Venture capital
fund panel by RBI
Mumbai: The Reserve Bank of India is
planning to set up a committee on the venture capital industry. The committee will devise
means of financing technology and research and development.
Representatives of financial institutions had met the RBI
governor Bimal Jalan and urged him to set up such a committee. ICICI sources said the
committee may focus on issues such as raising of resources, exit options, taxation issues,
corporate and securities laws and exchange control.
The Securities and Exchange Board of India had recently
set up a committee on venture capital funding.
Back to News
Review index page
FIs plan change in NPA
definition
Mumbai: Financial institutions ICICI,
Industrial Development Bank of India, and Industrial Finance Corporation of India have
decided to keep the definition of "deemed date of commercial production" open to
interpretation by them on a case to case basis.
This shift in policy will enable financial institutions to
re-schedule loans of defaulting ongoing projects without having to classify them as
non-performing assets. The financial institutions have taken the stand that loans cannot
be classified as non-performing assets unless a company, which has availed of loans,
commences commercial production.
Back to News
Review index page
Kaiga-11 to be critical
on 25 August
Mumbai: Nuclear Power Corporation of India
is all set to commission its 11th atomic power station at Kaiga in Karnataka.
The second unit of Kaiga power station, Kaiga-II, is
expected to go critical on 25 August, subject to clearance from the Atomic Energy
Regulatory Board, while Kaiga-I will become operational by June 2000. There has been a
delay by 32 months in the commissioning of Kaiga-II. The delay in the case of Kaiga-1 is
48 months.
Back to News
Review index page
IDBI plans asset
reconstruction company
New Delhi: The Industrial Development Bank
of India is planning to float an asset reconstruction company for state finance
corporations as the capital to risk-weighted asset ratio of eight out of the 18 state
financial corporations has turned negative.
IDBI has noted that the Bihar State Finance Corporation
and the Assam State Finance Corporation are on the brink of collapse with non-performing
assets crossing 90 per cent of aggregate loans extended.
Back to News
Review index page
Inflation rate falls
further
New Delhi: The annual rate of inflation has
come down to yet another record low of 1.19 per cent for the week ended 24 July.
The reason for the fall is ascribed mainly to comparison
with the abnormally high prices in the same period last year.
Back to News
Review index page
|
