Inflation up
New Delhi: The inflation rate calculated on the basis of the wholesale price index is at 2.84 per cent for the week ended 16 October 1999. The 0.33 percentage point rise is mainly on account of the 35 per cent diesel price hike.
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IDBI to float issue
Mumbai: The Industrial Development Bank of India will raise around Rs.1,250 crore through a subordinated debt issue and Rs.500 crore through a preference issue. These issues will shore up IDBI’s tier-II capital.
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ABN Amro receives funds
Mumbai: ABN Amro Bank India has received $35.5 million funds from its Dutch parent ABN Amro Bank NV. The bank will use the funds to enhance its capital adequacy ratio and for making up for the costs incurred in buying the retail division of Bank of America.

The bank is also intending to raise Rs.100 crore through a debt issue, which will increase its capital to risk weighted assets ratio to 10.5 per cent.
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ARC to provide the alternative to banks
New Delhi: The asset reconstruction company or ARC to be set up by the government will take over the non-performing assets of loss-making banks and issue them zero coupon bonds.

The government will be the majority shareholder in the ARC, while banks, financial institutions and even multilateral lending institutions will be offered minority stakes. The government has not yet decided as to when the ARC should be set up.

ARC was part of the Narasimham Committee’s recommendation on weak banks.
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IFC to pick up stake in Sundaram
New Delhi: The International Finance Corporation will take a 20 per cent equity stake in Sundaram Home Finance, a subsidiary of Sundaram Finance. Sundaram Home Finance will offer long-term housing loan products to Indian individuals.

Fiat Sundaram Auto Finance Pvt. Ltd. will exclusively finance Fiat cars in India. The company is a 49 : 51 joint venture between Sundaram Finance and Fidis SPA, a subsidiary of Fiat Auto.
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Trai to finally get some teeth
New Delhi: The Telecom Regulatory Authority of India Act 1997 will be amended in such a manner that all the ambiguities prevailing in it will be removed.

The government is keen on doing this since it wants to put an end to the disputes going on between the Department of Telecommunications and the Trai.

It may be noted that Mahanagar Telephone Nigam Ltd. had recently sued Trai and got a stay on the ‘calling party pays’ regime. This was possible because Trai’s licence agreement did not contain provisions for implementing the interconnect charges for connecting from a land-line to a cellular line.
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Cellular users to grow in India
New Delhi: By the year 2005, the Indian cellular market will be a $1 billion, 5 million user strong industry.

According to Frost & Sullivan, international marketing consultancy company, penetration of pre-paid cards, reduction in tariffs, network rollout and the calling party pays system will be the chief factors responsible for the rise in the subscriber base, market volume and value.

In the year 1998-99, the Indian cellular market has seen revenues touch $309 million and has 1.17 million subscribers.  Back to News Review index page