Government not to dilute holdings in LIC, GIC
Mumbai: The government is not going to dilute its holdings in the General Insurance Corporation of India and the Life Insurance Corporation of India, says Union minister of state for finance Balasaheb Vikhe Patil. And it will continue to have a say in their policy decisions, he says.

Mr Patil told a seminar on challenges faced by the insurance industry that the emergence of new players in the insurance sector will require a change in the work culture in the industry. The state-owned corporations, however, have no need for worry about a level playing field as the guidelines for private insurance companies will have social objectives compliance similar to those applicable to the public sector insurance companies.
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Corporation Bank’s plan for insurance unit
Mumbai: The Corporation Bank is interested in picking up the entire 74 per cent holding in its proposed insurance subsidiary despite the Reserve Bank of India's stipulation that Indian banks wanting to set up insurance subsidiaries can have holdings up to a maximum of 30 per cent. Corporation Bank is approaching the RBI with this proposal, says R.S. Hugar, chairman of the bank.

The government has approved foreign partners taking a maximum of 26 per cent holding in insurance ventures and Indian companies picking up the balance.
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Inflation crosses 3% mark
New Delhi: The inflation rate rose to 3.1 per cent in the week ended 8 January 2000. The rate had hovered below the three per cent level for about two weeks.

The increase has been attributed mainly to increases in the prices of various food and non-food items during the period under review. Official sources said there has been a rise in the indices of primary articles and manufactured products. The inflation rate was 4.52 per cent in the corresponding week in 1999.
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