Rupee under pressure
Mumbai: The rupee ended lower on 24 September 1999. During the day, it touched a new low of 43.5675/5725 to the dollar. Market sources say that since the volumes were not substantial, there was no need to worry about a further fall. They say that the month-end demand for the dollar is a common phenomenon.

Newspaper reports that said the Reserve Bank of India is considering a proposal to allow companies to hedge their expected foreign exchange exposures also created a bearish impact.
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HSBC network in India set to rise
Mumbai: With the merger of HSBC Bank Middle East and the Hongkong and Shanghai Banking Corporation, the HSBC network in India will increase to 26 branches. HSBC has received approval for the merger from the Reserve Bank of India.

HSBC Bank Middle East has a staff strength of about 120 employees; HSBC has around 2,700 employees. The merger means an exit for the British Bank of the Middle East, which has been in India for the past 60 years.
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Hermes withdrawing insurance cover
Mumbai: According to a report in The Economic Times, Hermes is reconsidering the withdrawal of insurance cover to Shree Maheshwar Hydel Power Corporation’s 400 mw power project. S Kumars is denying any such moves by Hermes.

The power project is being set up by the S Kumars group in Madhya Pradesh. Hermes is the political risk insurance agency of the German government.
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New govt. paper at 12.32%
Mumbai: The Reserve Bank of India has announced the auction of 12.32%, Rs.2,500 crore, 2011 government security. This is a re-issue of the paper, whose outstandings are currently Rs.8,500 crore. On the secondary market, the paper traded in the range of Rs.103.48 and Rs.103.52.

Post-auction, the central government would have raised Rs.62,630 crore during the fiscal year 1999-2000. This would mean that about 75 per cent of the government’s gross borrowing programme for the fiscal 1999-2000 would be complete already.
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ICICI plans another Safety Bonds issue
Mumbai: ICICI Ltd., which recently concluded a Rs.2,165 crore issue is planning to come out with its fourth Safety Bonds issue by 15 October 1999. The interest rate for the issue has not yet been fixed.

The issue size is expected to be around Rs.300 crore, with a greenshoe option of Rs.300 crore. The company has already mopped up Rs 840 crore from the three previous Safety Bond issues. A final decision will be taken once the company directors return from the US, after their recently concluded successful American depository receipts issue.
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SBI Caps to be Syndicate Bank’s issue lead manager
Mumbai: Syndicate Bank’s Rs.125-crore maiden public issue will be lead managed by SBI Capital Markets Ltd. The issue, which has received permission from the Securities and Exchange Board of India, will be launched in end-October 1999.

Of the total issue, 10 per cent has been set aside for employees. The bank has an equity of Rs.347 crore.

Syndicate Bank is planning to redeploy its surplus staff in recovering loans, to do door-to-door marketing and also to work in boutique branches. These branches will be opened in metropolitan cities.
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State Bank of Mysore to lower NPAs
Bangalore: The State Bank of Mysore intends to pare its non-performing assets to Rs.500 crore by March 2000. As of July 1999, its NPAs were Rs.602 crore. It has about 293 cases worth Rs.242 crore with the Debt Recovery Tribunal.

It also plans to do better asset-liability management. It has already started doing asset-liability management in 100 of its major branches. The bank will undertake such asset-liability management exercises every quarter.
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Output-linked wages for insurance staff
Calcutta: Once the Insurance Regulatory Authority bill is passed, the staff in the public insurance companies will receive wages based on their output. The plan for the switchover is ready.

The remuneration that insurance employees are currently getting will be low once the sector is opened for private competition. The state-owned insurance companies realise that in order to survive in a liberalised regime, the insurance staff should get pay based on productivity.
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AMP bids for GIO
Sydney: AMP Ltd. has launched a A$3.05 per share bid on the beleaguered GIO Australia Holdings. In end 1998, AMP had made a bid for GIO at A$5.35 per share. Since then GIO’s market value has declined 43 per cent to touch A$1.92 billion.
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Nippon Life, Sakura to tie-up
Tokyo: Nippon Life, a giant in the insurance field, will join hands with Sakura Bank in the consumer finance and online banking areas. Sakura Bank will now be able to enhance its domestic retail business.

Nippon Life, which has about 15 million individual clients, will take a 10 per cent stake in the joint venture.
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