Foreign investment norms in NBFC eased
New Delhi: The union finance ministry announced new guidelines for investment in NBFC that will pave the way for further liberalisation in this sector.

Under the new guidelines, the minimum equity investment in a fully owned company has been reduced to $5 m from the earlier limit of $50 m., with a stipulation that the wholly owned subsidiary will divest 25 per cent of the equity in favour of the public within three years of operations. The norms for holding companies – minimum capital of $50m – however, continues to stay. According to a release by the ministry, the new guidelines have been framed after a detailed review of the existing guidelines, especially since foreign companies were finding it very difficult to locate credible partners in a short time.
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ICICI Bank provides more for NPAs
Mumbai: ICICI Bank, which is in the final lap of its roadshows to raise $175m through the issue of ADRs, has made an additional provision of Rs. 13.5 crore for NPAs under the US GAAP for the quarter January to March 2000. The bank had, earlier, made a provision of Rs. 22 crore for the first nine months of this fiscal year. This additional provision has been made on account a private finance company, to whom loans have been extended, and which has gone into winding up before the BIFR.

The decision to make this additional provision was taken at a meeting of the board of directors held on March 14.
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Kerry Packer floats $250m fund with two Indian partners
Mumbai: Autralian media tycoon, Kerry Packer, following in the footsteps of his compatriot, Mr. Rupert Murdoch, has announced the setting up of a $250m investment fund in association with Mr. Vinay Maloo, chairman of Himachal Futuristic Communication Limited (HFCL) and noted BSE stock broker, Ketan Parekh. The two Indian partners are said to be holding their stakes in their individual capacities.

The fund will aim to identify investment opportunities in high growth, high technology areas like internet, software, e-commerce, telecom and media and entertainment. KVP Ventures, the name of the fund set up, will be third investment made by the Australian tycoon in this country, after his investments in HFCL and Sahara TV.
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IBA signs wage pact with unions
Mumbai: The Indian Banks Association (IBA), the apex body of the banking sector which represents all the banks, today signed a wage settlement with four bank staff unions, thus bringing to an end a year long negotiations between the two. The agreement will pave the way for a 12.25 per cent increase in the salaries of bank staff.

The agreement, however, left out three weak banks from the purview of the new wage scales. These were Indian Bank, UCO Bank and United Bank of India.

Sources also said that this wage agreement may be the last sector wide settlement reached by the IBA, since the IBA is of the view that, in future, wage negotiations should be bank-specific and not sector wide. The union leaders, however, are opposed to such a move.
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GNFC to set up export unit
Ahmedabad: The Gujarat Narmada Valley Fertiliser Company (GNFC), which has already forayed into the infotech sector, today announced the setting up of a 100 per cent export oriented unit in association with Ideal Data Electronics.

The new company will concentrate on software development for which, according to the managing director of GNFC, orders have already been received.
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Camlin to restructure
Mumbai: Mumbai based writing instruments major, Camlin Limited, has initiated a major restructuring exercise to bring all its business under one umbrella.

The merger of the various businesses under one entity is expected to bring about cost reductions, streamline strategies and help the businesses take advantage of common distribution network. The decision to come together comes at a time when the company is in the midst of a major modernisation program. The Dandekar family continues to exercise control over the company, even after the restructuring.
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VST Industries contemplating plants in the north-east
Hyderabad: In an attempt to counter competition, VST Industries, which has a whopping 60 per cent market share in the north-east, is said to be contemplating setting up manufacturing facilities there.

The decision to look at facilities in the region has been made easy by the announcement of new incentives for industrialisation of the region. The company’s deputy manging director is on record stating that the company is evaluating various strategies to meet the competition in the region, including the setting up of new factories.
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