6 january 2002
back to 2.21%
an over eight per cent fall in the price of vegetables and a near
two per cent in edible oils, coupled with marginal fall in sugar
and tea prices, pushed the inflation back to 2.21 per cent for the
week ended 22 december, as compared to 8.57 per cent in the year
the week witnessed point-to-point price change based on wholesale
price index (wpi) shedding a marginal 0.06 per cent from the
previous week's level of 2.27 per cent, even as ragi, mutton,
poultry chicken, sugarcane, woollen and hessian cloth, and mopeds
5 january 2002
pnb, vijaya make
fresh bid of insurance foray
punjab national bank (pnb) and vijaya bank are scouting for a
partner for their insurance venture with swiss insurer zurich.
the move comes after the new delhi-based hero group pulled out of
the venture at the last minute. the group was supposed to hold 51%
while zurich would have been holding 26%. the remaining stake was
to be split between pnb (15%) and vijaya bank (8%).
while sbi is the only psu bank to get the central bank nod, vysya
bank and jammu & kashmir bank are the private sector banks to
get rbi okay for their insurance plans.
4 january 2002
is keen on picking up a 26.1 per cent stake in the centurion bank.
the american banking major has already done its due diligence and
the recommendations have also been forwarded to its head office.
the deal, if fructifies,
will be valued between rs 12-14 per centurion bank share. the
foreign stake in centurion currently stands at 37 per cent. thus,
any foreign investor can pick up only 12 per cent given the
sectoral cap in banking which stands at 40 per cent. further, a
foreign bank having operations in the country can only pick up 20
per cent in a domestic bank.
3 january 2002
lic arm to buy glfl
housing fin portfolio
housing finance ltd is acquiring the outstanding home loan
portfolio of glfl housing finance ltd worth approximately rs 60
crore along with the attendant liabilities.
glfl housing finance has
a significant presence in gujarat. with this acquisition, lic
housing finance would have a major presence in that sector.
lic housing finance's
disbursements of individual loans amounted to rs 1,600 crore in
2000-2001; it has targeted disbursements of rs 2100 crore in
individual housing loans for 2001-2002.
2 january 2002
co-op banks licence cancelled
the reserve bank of india (rbi) has cancelled the licence of the
ahmedabad urban co-operative bank ltd (aucb) because of its
mismanagement and weak financial position.
aucb chief executive
officer niketan shah has filed a first information report with the
police against bank chairman surendra rajput, several bank
directors and four managers alleging that they siphoned off more
than rs 30 crore.
the police has registered
a case of cheating, forgery, breach of trust, hatching criminal
conspiracy, fraudulent activities against the chairman, directors
1 january 2002
india's gdp growth
rate pegged at 5%
the confederation of indian industry (cii) has projected a gdp
growth rate of 5.0 per cent while pegging centre's fiscal deficit
at a higher 5.1 per cent during 2001-02.
cii, in its corporate outlook for 2002, said that fiscal 2001-02
would see a real gdp growth of not more than 5.0 per cent while it
was expected to improve to 5.5-6 per cent in the next fiscal.
"while this (5.0 per cent growth rate) still makes india one
of the fastest growing countries of the world, it will be
insufficient to create the demand stimulus needed for eliminating
surplus capacities, raising corporate profits, generating higher
tax revenues and giving a much needed impetus to fresh private
investments," it said in a release.
31 december 2001
sbi to slash
housing loan rates
the state bank of india has decided to bring down interest rates
on its housing loans to 11.5 per cent effective 1 january 2002.
this makes the loan among
the cheapest available in the country.
the reduced rates will apply to all loans disbursed after 1
january. even those who have taken loans earlier on variable rates
will benefit from the lower rates.
the bank is also considering extending the zero processing fee
offer, which comes to an end in the first week of january.
market leader housing development finance corporation is also
likely to review its existing home loan rates which are around 12
go to finance diary index page