UTI Bank wants to review merger with GTB
Mumbai: UTI Bank has reportedly threatened to pull out of the proposed merger with Global Trust Bank over sharp differences on the issue of going in for a fresh valuation, to review the share swap ratio decided for the merger. The demand for a fresh valuation exercise is likely to review once again the quality of GTB’s assets and its capital market exposure.

GTB is however, unwilling to accede to UTI Bank’s demand saying that valuation done by SBI Capital Markets, has already been accepted by the boards and shareholders of both the banks.
Though the share swap ratio of 9:4 was loaded in favour of GTB shareholders, the UTI Bank had not made an issue about this as it wanted the merger to go through smoothly and compromised on somewhat unfavourable swap ratio, as the price to have control over the bank.
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Cholamandalam to expand its retail finance portfolio
Chennai: Cholamandalam Investment & Finance Company Ltd. (CIFCL), retail financing arm of the Murugappa Group, has plans to double disbursement to Rs 1,000 crore in the coming fiscal. The company, which has diversified into two-wheeler financing and personal loan products to its customers, is also set to enter northern and eastern regions.

During the year ended June 30, 2000, the company had achieved 61 per cent growth in disbursements at Rs 274 crore, against 18 per cent last year. Mr. P N Vasudevan, business head (vehicle finance) has said that the company is financing 1,500 vehicles per month and has stepped up disbursement target for March to Rs 50 crore from Rs 40.63 crore achieved in February. The aggregate disbursals is set to touch Rs 340 crore in the first nine months till March end this year. On an annualised basis, it is projected to be Rs 500 crore till June 30, 2001, yielding a growth of over 75 per cent.

Of the total disbursal target of Rs 1,000 crore, Rs 800 crore would come from commercial vehicles and car loan segments. The company already into two wheeler financing has a disbursement target of Rs 120 crore set for next year, while balance Rs 80 crore would come from the "comfort range of products" for its customers with proven credentials. These will include personal loans, education and travel loans besides financing the purchase of durables.
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23 FDI proposals worth Rs 832crore cleared
New Delhi: The government has cleared 23 foreign direct investment proposals worth Rs 832 crore, including Rs 638.9-crore proposal of Petro Energy Products and Rs 46-crore proposal of Dharma Port Company. Petro energy product's FDI proposal at Rs 638.9 crore involves increase in equity to 95 per cent from the 40.5 per cent for oil refinery activities.

The 23 proposals cleared by the union minister for commerce and industry Mr. Murasoli Maran, cover various sectors - including oil refinery, steel, internet services consumer goods, beverages, textiles and port development -- and are based on recommendations of the Foreign Investment Promotion Board (FIPB).

Other FDI proposals which received approval include, the US-based Radian Group's Rs 46-crore proposal for promotion of adventure sports, raceway and resorts. The group also received approval for another proposal worth Rs 4.6 crore involving manufacturing and distribution of non-alchoholic beverages. Timex Watches' Rs 7.6-crore proposal to increase foreign equity to 71.3 per cent from 58.4 per cent for manufacture of quartz analogue watches was also cleared.
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GE Cap launches Rs 50-crore bonds
Mumbai: GE Capital has launched the first ever bond issue in the country, where the book-building exercise will decide the trend of the issue rather than the coupon rate. ABN-Amro Securities is the sole arranger to the issue. The Rs 50 crore issue has a green-shoe option to retain over-subscription up to Rs 50 crore. The book-building range is 45 to 75 days, with a fixed coupon rate of 9.75 per cent, payable on redemption of the paper.

This is the third issue by GE Caps within the last six months. In November, GE floated two issues for a total amount of Rs 75 crore. Both the 12-month bonds were linked to the Reuters 3-month CP reference rate. The first issue of Rs 25 crore was a one-to-one deal with HDFC Bank. The bank took the entire issue on its books.
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