SBI to identify foreign partner for insurance in 2 weeks
Mumbai: State Bank of India is likely to identify a foreign partner for its insurance foray in the next two weeks, according to SBI chairman, Mr GG Vaidya. The bank is said to have short listed six to seven names and a final decision would be taken after considering factors like technology, product development capability and risk management systems among other things. The foreign partner will be given a 26 per cent stake in the venture. To begin with the bank will take up life insurance and will have 500 branches engaged in distribution of policies.

Mr Vaidya, speaking to reporters on the sidelines of the AGM of the Indian Institute of Bankers presided by him, said,"We will file the application with the Insurance Regulatory Development Authority by the end of October."

On the possibilities of any VRS schemes being launched Mr Vaidya said, "A final decision on the ensuing VRS package will be taken in the next two months. Seven to ten per cent of 2,30,000 strong workforce could opt for the package."
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SBI to commence depository services.
Mumbai: State Bank of India will shortly commence live depository services from its centres in Ludhiana and Mumbai. SBI has recently received registration from SEBI to act as a depository participant and has signed an agreement with Central Depository Services or CDS to act as its depository participant. SBI, which is a CDS sponsor, holds 10 per cent stake in it. Ludhiana and Mumbai are electronically connected with CDS.

SBI treasury chief general manager (CGM), Mr P Rajeshwar Rao, who is also a director on the board of CDS, said that later SBI will extend its depository services to its centres in Kanpur, Indore and Guwahati. All these centres will be electronically connected to CDS, thereby providing online services to investors who open a demat account with SBI.

Securities of 1,524 issuer companies are available for demat and 90 depository participants are offering CDS depository services to investors. CDS currently levies a charge of only 0.005 per cent on transactions (half basis points). There is no custody charge levied by CDS on its depository receipts.
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Dewan Housing launches new scheme
Mumbai: Dewan Housing Finance CorporationLtd (DHFL) has diversified into the consumer loans segment with the introduction of "Home Loans Plus".

"Under the new scheme, finance will be provided for consumer durables, vehicles and personal loans", executive director, Kapil Wadhawan, said today.

SAIL shareholders likely to clear restructure plan tomorrow
New Delhi: Steel Authority of India's shareholders are expected to approve its business-cum-financial restructuring proposal at the annual general meeting to be held here on Friday. The financial restructuring proposal mainly involves divestment of non-core activities such as power and oxygen generation as well as production of alloy and special steel. The proposal also includes changing SAIL from a functional to a business unit structure. Decisions are also likely to be taken on strategic marketing, redesigning of key corporate processes and cost reduction measures.

Steel Authority of India Limited had floated a global tender for seeking a joint venture partner for the Indian Iron and Steel Company. It has already short listed bidders for its Salem steel and oxygen plants. Earlier its decision to divest itself of power plants had run into rough weather on account of unions opposing the proposed joint venture with National Thermal Power Corporation.

As directed by the cabinet, SAIL had signed an MOU with the government for the implementation of its business restructuring plan in March so that it is implemented in a time bound fashion. SAIL had also held an EGM to approve all the resolutions. According to the MoU, SAIL's objective now is to become a profit making organisation in two to three years' time. SAIL has also undertaken to fulfill commitments made in the restructuring plan. The ministry of steel will review the progress of the implementation of the plan on a quarterly basis.

The government has already approved a one-time restructuring package for SAIL in February --- one of the largest ever. The package involves waiver of loans given to SAIL amounting to Rs 5,454 crore, providing guarantees to enable SAIL to raise Rs 3,000 crore from the market for meeting repayment obligations on past loans and financing a voluntary retirement scheme.
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Global Tele, Global Electronic in 1:6 merger
Mumbai: Global Telesystems, an e-commerce applications major and Global Electronic Services, a player in the electronic commerce and messaging services business, are set to marry in the near future. The boards of directors of the two companies have approved the merger effective retrospectively from April 1, 2000. The merger will entitle shareholders of Global Electronic Services one equity share of Global Telesystems of face value Rs 10 for every six shares of Global Electronic Services held on record date. The legal formalities, including the approval by shareholders of the two companies, are expected to be comple by mid-February 2001. By this time the new shares of Global Telesystems 2.64 crore will also have been issued to the Global Electronic Services share holders.

The combined market capitalisation of the two companies, based on Global Tele's current share price of Rs 1,418, will stand at over $2 billion (Rs 9,000 crore), making it among the largest mergers in the Indian IT and telecom sectors, clains a media release by the company.

The release adds that the merged entity will provide end-to-end solutions, build around vertical industry segments and will increase the number of application layers across various horizontals such as procurement systems, payment systems, security and CRM. The merged entity will have four focus areas -- application services, e-business infrastructure, software and engineering services. Founders and associates will hold 34 per cent of the merged company while domestic banks, FIs and mutual funds will hold 13 per cent. International investors, NRIs and OCBs will take up 20 per cent, FIIs 20 per cent and the balance will be accounted for by the public. Prior to the merger, the promoters were holding 31 per cent of the paid-up capital of Global Telesystems and 38.5 per cent in Global Electronic Services.

According to the release, the merger will pave the way for a formidable combination of e-commerce, networking services and software services backed by flexible technology and management experience.

It will deliver e-commerce and networking solutions through its own digital data network spanning across 14 cities on a platofrm called "end-to-end e-commerce enabler" comprsing engineering services, software services, application service provider business and data centres among others.
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