Inflation crosses 2%
New Delhi: The inflation rate based on the wholesale price index crossed 2 per cent for the first time in 10 weeks. It was 2.02 per cent for the week ended 11 September 1999. It is the fifth consecutive week that the inflation rate has risen over the previous week. For the week ended 4 September 1999, the inflation rate was 1.94 per cent.
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RBI fixes cap on preference dividend to foreign cos.
New Delhi: The Reserve Bank of India has fixed a cap of 15 per cent for dividend on preference shares to be paid to foreign companies. The RBI has come to the conclusion that dividends paid on preference shares have been one of the reasons for the recent outflow of dollars and the resultant drop in the rupee value.

In the meantime, the RBI has suggested that banks help each other through takeout financing and thus avoid asset-liability mismatch problems. This problem has been identified by the second Narasimham Committee report as a huge risk faced by the financial sector.
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Direct taxes may turn positive
New Delhi: By September 1999, direct tax collections in the country are expected to turn positive again. The reasons: advance tax collections, which had a deadline of 15 September 1999, are expected to have gone up. There had been a drop in direct tax collections during the period April to August 1999.
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Tata Finance, Amex to set up NBFC
New Delhi: According to a report in the Business Standard, Tata Finance has sought the government’s permission to set up a non-banking finance company through a joint venture with American Express International.

Tata Finance, Indian Hotels and Tata International together will hold 74 per cent, while Amex will hold 26 per cent in the joint venture initially. Amex’s 26 per cent will amount to $1.5 million. Amex will be given the right to take its stake up to 35 per cent during the first six months of operation of the new company. The increase in stake will happen provided Amex Travel Services sells its foreign exchange business to the new company.

The new company will operate in areas such as money changing, travelers’ cheques, travel insurance and pre paid calling cards.
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Lazard Creditcapital changes name
Mumbai: Lazard CreditCapital, the Indian arm of Lazard House, will be renamed as Lazard India. Lazard House owns 50 per cent in the Indian subsidiary while Udayan Bose and associates hold the rest.

Lazard India will focus on corporate finance, including mergers and acquisitions, and helping local firms acquire foreign ventures.
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MTNL faces reduction in new connections
New Delhi: The average number of registrations for new connections with Mahanagar Telephone Nigam Ltd. has declined to 11,000 per month in Delhi for the first five months of fiscal 1999-2000. Earlier, between 1996 and 1998, the average used to be between 13,500 and 15,500 per month.

In Mumbai too, the number of average new registrations per month has fallen from about 15,000-20,000 to 10,000-15,000.
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New India net falls
Mumbai: The New India Assurance Co. Ltd.'s net profit  fell to Rs.375 crore during the year ended 1998-99 from the Rs.471 crore in th eprevious year. The insurance company' s un-expired risk reserves rose to Rs.121.76 crore from Rs.60.51 crore.

According to S K Kanwar, chairman and managing director of New India Assurance, the 20 per cent drop was a result of provision made for non-performing assets and losses on account of the Gujarat cyclone.
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Royal Bank of Scotland also bids for Natwest
London: The Royal Bank of Scotland has bid for National Westminster Bank at 25 billion. Earlier, Bank of Scotland had offered bid 22 billion pounds for Natwest.

Both Scottish banks feel that Natwest would be one of the best avenues for spreading beyond Scotland.
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