FIs prepare list for divestment
Mumbai: Leading financial institutions have prepared a paper listing nearly 12 public sector units in which the government can disinvest its stake. The government proposes to meet a disinvestment target of  Rs 10,000 crore in 1999-2000. The companies identified are said to include  Indian Oil Corporation, Oil and Natural Gas Corporation, National Aluminium Company, Gas Authority of India and Computer Maintenance Corporation. The institutions are understood to have suggested that the government may try a combination of domestic issues, warehousing of shares with the institutions and overseas issues as the modes for the disinvestment.

The institutions, comprising Industrial Development Bank of India, ICICI, Life Insurance Corporation of India, Unit Trust of India and Infrastructure Development Finance Corporation, had prepared the paper at the instance of finance minister Yashwant Sinha.
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SBI Caps to raise funds for Gujarat expressway
Mumbai: SBI Capital Markets has bagged the mandate to advise, structure and raise funds for the Ahmedbad-Mehsana highway project, coming up in Gujarat on a build-operate-and-transfer basis. The estimated cost of the four-lane 63-kilometre stretch, which will employ the toll system, will be Rs 300 crore. The Industrial Development Bank of India will extend debt fund for the project and SBI Caps intends to raise additional funds from commercial banks.
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Corporation Bank plans insurance company
New Delhi: Public sector Corporation Bank is planning to enter the insurance business once the sector is privatised. The bank is holding discussions with foreign insurance companies and it has drawn a basic framework for the plan. The bank may float a subsidiary for the purpose.

The bank has also announced that it is seriously considering entering the e-commerce business.
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New products from Karur Vysya Bank
Chennai: Private sector Karur Vysya Bank is launching its speed collection and payment services for corporate customers. The bank is also introducing instant funds transfer using its own Intranet.

The bank plans to introduce a slew of products in order to enhance value addition to customers and increase its own business growth. The products will include special savings scheme for depositors and offering retail loans and housing loans at competitive rates.
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IFCI gets lower rating
Mumbai: Duff & Phelps Credit Rating India has rated the Industrial Finance Corporation two notches below the rating accorded to it by Icra for its long and medium term rupee debt obligations. Duff & Phelps Credit Rating India is the first agency apart from the IFCI-promoted Icra to rate IFCI’s debt obligations.

Duff & Phelps Credit Rating India has assigned an Ind AA- (high safety with relatively lower standing within the category) rating to the Rs 1,500-crore long-term debt instruments, the Rs 1,500-crore medium-term debt instruments, the Rs 350-crore worth of preference shares and a fixed deposit programme of IFCI. Its short-term instruments have been given an Ind D-1+ rating.
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Royal Bank formalises bid on NatWest
London: Royal Bank of Scotland Group made it public that it is seriously considering to bid for the National Westminster Bank by submitting a merger notice to Britain’s Office of Fair Trading.

National Westminster is already subject of a $35.71 billion acquisition bid by Royal Bank’s archrival Bank of Scotland. Royal Bank of Scotland is reported to be in parleys with Spanish bank BSCH, which owns nearly 10 per cent stake in Royal Bank, for a united bid for NatWest. Meanwhile Italian bank Sanpaolo IMI is also holding talks with BSCH and Royal Bank of Scotland for a planned $40.56 billion bid for NatWest.
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