IFCI fixes Rs 200 crore ceiling for loans
Mumbai: The Industrial Finance Corporation of India has now decided not to lend more than Rs 200 crore to any one company. IFCI has also decided to reduce its maximum exposure limits to 30 per cent of net worth for business groups and 15 per cent for companies by March 2001.

IFCI chairman P.V. Narasimham said it has approached the Reserve Bank of India for a one-time exemption for over-stepping its exposure limits while granting loans to the Essar and Ispat groups.

IFCI's credit rating has been lowered recently.
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Interest cap in FIs' fixed deposits may be relaxed
Mumbai: The Reserve Bank of India is likely to relax the cap on interest rates offered by development financial institutions under their fixed deposit schemes. At present, financial institutions cannot offer more than the State Bank of India's term deposit rates.

The institutions are likely to be allowed to offer 150 basis points over the rates offered by SBI. The institutions are pressing for a cap of 200 basis points over SBI rates.
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ADB loan for Mumbai Port Trust projects
Mumbai: The Asian Development Bank has agreed to lend around Rs 420 crore over four years for part-financing some of the projects of the Mumbai Port Trust.

The major projects are replacement of submarine pipeline at a cost of Rs 270 crore, modernisation of marine oil terminal berths and replacement of common users pipeline from Pir Pau to the marketing storage at Sewree in south Mumbai.

The port trust has earmarked Rs 291 crore for its expansion project in the year 1999-2000.
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Unified exchange for oil trade planned
Mumbai: The Bombay Oilseeds and Oils Exchange and the Solvent Extractors' Association of India signed a memorandum of understanding for setting up the country's first multi-commodity exchange for oils, oilseeds and related products.

The two organisations have agreed to combine their strengths and jointly work for seeking recognition to conduct futures trading in all oil seeds, oils and oilcakes. They have made a joint presentation to the Forward Markets Commission in this regard.
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ICICI announces home loans
New Delhi: ICICI is now in the housing finance sector. It has formally launched ICICI home loans with competitive interest rates under two slabs. Under the first category, for a loan between Rs 1 lakh and Rs 5 lakh, the rate will be 13.5 per cent, while under the second category for loans above Rs 5 lakh the interest rate will be 14.5 per cent.

The quantum of loan also varies from Rs 1 lakh to Rs 1 crore, depending on the repayment capacity of the individual. The loans will be for a maximum period of 15 years.
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IDBI Mutual plans ATM facility
Mumbai: IDBI Mutual Fund plans to introduce ATMs for a new liquid fund it proposes to launch in the near future.

The fund, modelled on the lines of its existing money market mutual funds, will not have a 15-day lock-in period, which the money market mutual fund is subject to.

IDBI Mutual Fund is in talks with ABN Amro Bank to offer this facility. The facility will be similar to the one provided by the fund to investors in its IDBI I-nit 95, which allowed investors to encash their units at any of the 10 pre-designated centres of empanelled banks.
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RBI to appoint consultants for settlement system
Mumbai: The Reserve Bank of India will appoint a consultant to implement the 'real time gross settlement' programme announced by governor Bimal Jalan in his monetary policy.

Four companies are in the fray -- Pricewaterhouse Coopers, Tata Consultancy Services, HCL and IBM.

The RTGS system, which is expected to be completed in 15 to 18 months at a cost of Rs 300 to Rs 400 crore, will put in place a system with V-SAT-based communications infrastructure for handling large inter-bank fund transfers.
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Standard Chartered to stay with Bank Bali
Jakarta: Standard Chartered will not pull out of its investment in PT Bank Bali Tbk, in spite of a scandal in the bank that has hit investor confidence in Indonesia.

Standard Chartered Bank announced that nothing that has occurred in recent days has in any way detracted from the bank's commitment to invest in and develop the new Bank Bali.

The row is over a payment of $71 million by Bank Bali to a company controlled by a senior official of the ruling Golkar party to help recover a loan owed by the government banking overseer, the Indonesian Bank Restructuring agency.
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