Rupee under pressure
Mumbai: The rupee plunged to a 16-month low of 43.66 against the dollar on 24 January. The main reason, money market players say, was frantic dollar buying in the earlier part of the day by the State Bank of India on behalf of its clients. The bank later turned seller along with Bank of Baroda and Bank of India, which helped the rupee to stabilise a little. The selling process is said to have been initiated at the instance of the Reserve Bank of India. The rupee closed at 43.6050/6150.
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RBI prescribes norms for take-out finance
Mumbai: The Reserve Bank of India has announced norms to be followed by banks and financial institutions while taking recourse to take-out finance. In the case of unconditional takeover, a risk weight of 20 per cent is applicable to the lending institution where the full credit risk is assumed by the taking over institution. In case partial credit risk is assumed by the taking over institution, the risk weight will be 20 per cent on the amount taken over and 100 per cent on the amount not to be taken over. For the taking over institution, the risk weight will be 100 per cent on the amount taken over. The credit conversion factor will be 100 per cent. In the case of conditional takeover, both the lending and taking over institutions will have to assign a risk weight of 100 per cent. The credit conversion factor for the taking over institution will be 50 per cent.

The central bank feels the norms are necessary as banks and financial institutions are adopting the new product of take-out finance for meeting the financial requirements of infrastructure projects.
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365-day banking by Grindlays
Mumbai: ANZ Grindlays Bank will introduce 365-day banking in six of its branches located in Delhi, Mumbai and Chennai. The bank has already introduced extended banking hours, phone banking and doorstep banking as part of its efforts to enhance the value of the "banking experience".

Anuroop "Tony" Singh, country head, ANZ Grindlays Bank, India, says these facilities and services form an integral part of the bank’s overall business plan to offer all customers a range of banking services and products for satisfying their personal financial service needs.
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Federal Bank plans Internet-based services
Bangalore: The private sector Federal Bank is entering Internet banking and e-commerce in a big way. The new services will be available to the bank’s customers by April 2000 and will cover metro and large cities initially, says the bank’s chairman K.P. Padmakumar. The bank is tying up with Infosys Technologies to introduce these new services. It will be using Infosys Technologies’ BankAway software for the new services, which will mainly be targeted at its non-resident Indian account holders.
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NatWest consolidates its defences against takeover
London: National Westminster Bank of Britain has reported profits of 2.305 billion in 1999, which is above its expectations and this is forming one of its defences against the two hostile takeover bids by Bank of Scotland and Royal Bank of Scotland that is currently on. The bank’s share price also went up by 3.6 per cent to 1223 pence. The bank has  announced a share buyback scheme through a tender for 1.5 billion worth of shares and announced that it will return further 2 billion worth of capital to its shareholders later this year.
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