RBI committed to 3% CRR
Mumbai: The Reserve Bank of India is committed to reduce the cash reserve ratio to the minimum statutory level of 3 per cent prescribed in the RBI act.

This policy was reiterated by Y.V. Reddy, deputy governor, while delivering the keynote address at the third South Asian Assembly at Kathmandu.

"The medium-term objective of reducing cash reserve requirements to the minimum prescribed in the statute, and the long-term objective of proposing amendments to the statute to make all reserve requirements flexible, will be pursued, consistent with developments in fiscal and monetary conditions, Mr Reddy said.

He also said RBI will continue with the policy of restricting arbitrage between the money markets and the foreign exchange markets.
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Third internet node in West Bengal
Calcutta: The department of telecommunications has set up an internet node at Kharagpur in West Bengal, the third such node in the state. It also has two nodes at Siliguri and Durgapur in the state.

DoT has planned seven other such nodes in the state. The target is to connect all district headquarters in the state through internet nodes by the end of the year.
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ADB approves $250 million loan
New Delhi: According to a report in the Business Standard, the Asian Development Bank has approved a loan of $250 million with a tenor of 25 years, including a five-year grace period. The amount is to be divided between Hudco, ICICI, and Infrastructure Development Finance Corporation. Hudco will get $90 million while the other two financial institutions will each receive $80 million.

After India's nuclear tests in May 1998, this is ADB’s first loan to India. The amount will be primarily applied on developing urban infrastructure.
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Vibank to increase equity base
Bangalore: Vijaya Bank’s subsidiary, Vibank Housing Finance Ltd., will increase its equity base by Rs.4 crore from its current level of Rs.10 crore. It is expecting a Rs.10-crore term loan from Vijaya Bank.

Out of the Rs.4 crore to be infused into Vibank, Rs.3.2 crore will come from Vijaya Bank, and the rest from the National Housing Bank, provided the latter agrees to bring in the money. Vijaya Bank and NHB hold 80 per cent and 20 per cent respectively of Vibank's equity. If NHB decides not to bring in the amount, its stake in Vibank will reduce.
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Common investment bank proposed in Europe
Frankfurt: Commerzbank AG of Germany, France’s Credit Lyonnais, Spain’s BSCH and BCI of Italy may merge their investment banking divisions to form a common investment bank. The investment bank merger is expected to happen some time in 2000. These banks are already jointly distributing banking products. Martin Kohlhaussen, Commerzbank’s chief, said that at a later date, even a full-scale merger cannot be ruled out.

The market analysts in Europe say that they could not believe that the chief of Commerzbank had voiced his opinions so openly and so well in advance. They also feel that Commerzbank is not big enough to survive on its own. There are bigger banking giants in Germany such as Deutsche Bank and Dresdner Bank, which have grown through the acquisitions route.
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Stanchart to buy Nakornthon Bank
Bangkok: Thailand's financially weak Nakornthon Bank will be taken over by Standard Chartered Bank for $320 million, for a 75 per cent stake.

Nakornthon was nationalised in July 1999 and has 67 branches. Its name will be changed to Standard Chartered Nakornthon Plc.

Stanchart’s deal puts it the winner in a race for Nakornthon Bank, in which Citibank and Singapore’s United Overseas Bank also contested. In the meantime, United Overseas Bank is expected to clinch the deal for taking over Radanasin, another beleaguered Thai bank.
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NatWest plans acquiring Legal & General
London: National Westminster Bank is in talks to acquire life assurance and pensions group Legal & General group in a $17.24 billion dollar deal. Talks have been confirmed by the London Stock Exchange. Final terms of the cash and stock bid, worth 210 pence a share are to be announced next week,

Once finalised, the deal will create a powerful new financial services group with a market value of 30 billion pounds.
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