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PwC sees cost of capital declining
Mumbai: PricewaterhouseCoopers, the consulting firm, believes that the cost of capital
for domestic firms would decline over the next three years because of several factors,
including lower interest rates and the maturity of the stock market. A PWC study, released
in Mumbai on 14 March, says Indian companies generally feel that business risk, management
quality and shareholder-value orientation, cash flows, and debt-equity ratios are the key
factors influencing their cost of capital.
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Indian
steel makers concerned about US probe
New Delhi: Indian steel producers may be further hit by a US investigation into
charges that they are dumping steel wire ropes in the US market. The steel wire ropes
exported from India are used mainly in maritime, oil and gas, mining, air transport,
engineering, and construction.
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Bank rate may
be down 1%, CRR too
Mumbai: It is reported that the Reserve Bank of India is considering reducing its
‘bank rate’ and trim the CRR requirement of banks too. The bank rate is
currently 9 per cent.
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Rs 471-crore
loss on RIBs
New Delhi: The government has provided for an exchange rate loss of Rs 471 crore on
its Resurgent India Bonds in 1999-2000. This provision has been made in its second
supplementary budget for the year. The government had issued these bonds when the rupee
was valued at Rs 42.5 to a US dollar.
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Inflation
marginally up
Mumbai: India’s annual rate of inflation moved up marginally to 2.14 per cent
during the week ended 26 February. The rate is measured in terms of the wholesale price
index on a point-to-point basis.
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Assocham
against new MAT
New Delhi: The Associated Chambers of Commerce and Industry has expressed its
disapproval of the proposed new system of minimum alternate tax on companies. It prefers
the original MAT. The new system was proposed by finance minister Yashwant Sinha in his
Budget speech.
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ICICI
Bank’s net card
Mumbai: ICICI Bank will expand its credit card business to eight cities soon. In
addition to Delhi, Mumbai, Calcutta, and Chennai, the bank will cover Hyderabad,
Bangalore, Pune, and Ahmedabad. The bank, which has launched its credit card with internet
access, offers the facility in three categories, with the lowest-end card requiring an
entrance fee of only Rs 300.
Meanwhile, ICICI Bank has also launched mobile commerce
services through a tie-up with Orange and Airtel, the cellular service providers in Mumbai
and New Delhi. The facility allows subscribers to these phone services who are also
account holders or credit card holders with ICICI Bank to track their personal finances
over their mobile phones.
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Vijaya Bank
write-off
New Delhi: The government has permitted the public sector Vijaya Bank to write off
accumulated losses of about Rs 290 crore against capital. This action will help the bank
improve the look of its balance sheet before it goes for a Rs 100-crore public issue.
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Konkan Railway
may raise RORO charges
New Delhi: The Konkan Railway Corporation is reportedly talking to truckers with a
view to raising the rates for the roll-on-roll-off services it offers along the 750-km
Panvel-Mangalore corridor. The Konkan Railway currently charges Rs 5,000 for its RORO
services along the entire stretch, allowing fully laden heavy commercial vehicles with
axle weights up to 17 tonnes to be loaded on to railway wagons for transportation along
the route.
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India-US
container service
Mumbai: The Shipping Corporation of India and Contship Containerlines of the US
have jointly launched a direct container service between India and America. They may rope
in CMA-CGM of France later. The partners in the consortium will hold equal stakes, and
contribute two vessels.
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Weak bank NPAs
New Delhi: Finance minister Yashwant Sinha said on 14 March that the government will
create a financial reconstruction authority to deal with the non-performing assets of weak
public sector banks. He stated that the statutes governing such banks would be amended to
provide for even supercession of the board of directors and formation of a financial
reconstruction authority with special powers, including those already present with the
boards.
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Tata group may enter venture capital
Mumbai: It is reported that the Tata group may enter the venture capital
business in a big way. The group, which has invested $2.5 million in an India-focussed
venture fund, Infinity, is said to be in negotiations with a European fund and a US-based
fund to participate in their venture capital activity.
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Karnataka
Bank’s thrust in the north
New Delhi: The Mangalore-based Karnataka Bank will open its northern regional
office in New Delhi as part of a expansion plan to expand operations to the north of the
country. The bank plans to open many branches in Delhi, Madhya Pradesh, and Uttar Pradesh.
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Asahi, Tokai,
Sanwa merging to form third largest bank
Tokyo: Sanwa Bank, Asahi Bank and Tokai Bank, three of Japan’s biggest banks,
have announced that they will merger next year to form the world's third-largest bank in
asset terms.
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