Moody's gives India Aa3 rating on local currency
Mumbai: Moody's Investor Service has placed India alongside Korea, South Africa, Taiwan, Croatia and Poland in the matter of local currency ratings of Indian issuers. It has assigned Aa3 (high grade rank) for the country.

However, the Moody's foreign currency rating for India is below that of these countries, which all enjoy investment grade foreign currency ceilings, against India's non-investment grade of Ba2 (not prime/sub-investment).

The local currency rating given by international rating agencies is used by investors to understand how an issuer's rating is constrained by the foreign currency rating in the case of issuers domiciled in countries with low ratings.
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Restraint on IFB Finance
Calcutta: The Reserve Bank of India has advised IFB Finance of the Calcutta-based IFB group to stop accepting deposits and abstain from selling its assets. It can, however, sell assets for the purpose of repayment of deposits.

There have been several complaints from depositors relating to delayed repayments and defaults by the non-banking finance company. The company's liability is in the region of Rs 28 crore.
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Bank borrowings drop
Mumbai: The outstanding borrowings of scheduled commercial banks from the Reserve Bank of India have dropped by Rs 5,797 crore during the fortnight ended 27 August 1999. The RBI's weekly statistical supplement said borrowings dropped from Rs 8,561 crore on 13 August to Rs 2,771 crore on 27 August. The drop has been mainly on account of repayment of RBI's refinance facility by banks and dealers.

Inter-bank call money rates also dropped to below eight per cent in the week ended 27 August. The deposits grew by Rs 6,929 crore.
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