Bank credit up 16%
Mumbai: The year-on-year growth in bank credit for the fortnight ended 15 August 1999 touched the highest level for any reporting fortnight during the current financial year -- 16 per cent. This, along with an increase in investment in commercial paper, analysts say, is an indicator of an improvement in bank demand for funds.

The Reserve Bank of India's weekly statistical supplement says outstanding non-food credit for the banking sector increased by Rs 1,648 crore in the fortnight ended on 13 August to Rs 3,51,185 crore -- bringing the increase during the financial year to Rs 5,243 crore. Companies raised funds through issue of commercial paper of nearly Rs 1,507 crore, subscribed to mainly by banks, during the fortnight, taking the total outstanding investment in commercial papers to Rs 7,419 crore.

The RBI report said food credit declined by Rs 432 crore during the fortnight under review.
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Free phone connections for net users
Ahmedabad: Free phone connections will be available to subscribers of all internet services providers. This assurance has been given by S.S. Sodhi, chairman of the Telecom Regulatory Authority of India.

Trai had earlier stayed Mahanagar Telephone Nigam Ltd's plan to give free telephone connections to its internet subscribers.

Mr Sodhi was delivering a keynote address on "Telecom policy initiatives: the road ahead" at the Centre for Telecom Policy Studies of the Indian Institute of Management here.
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Canbank factoring looking for JV ally
Bangalore: Canbank Factors is on the lookout for joint venture partners from Europe or US for its export factoring services.

Canbank Factors, which has got an export factoring licence from the Reserve Bank of India, has started undisclosed factoring on an experimental basis. It is planning to join Factor Chain International soon.
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BNP bid on SocGen fails
Paris: France's banking regulator said Banque Nationale de Paris has failed in its bid to take control of Societe Generale and create Europe's first bank with trillion dollar assets.

The regulator said with only 31.8 per cent of Societe Generale's voting rights, BNP did not have effective control of its target and as the two banks had failed to reach a compromise, BNP cannot retain the shares it has purchased.

Societe Generale had a merger plan with Paribas in February when rival BNP stepped in with a hostile bid for both Paribas and Societe Generale. BNP has already taken over Paribas.
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