SBI in major revamp
Mumbai: The State Bank of India will appoint a ‘technology planning’ consultant, who will advise the bank on technology upgradation. The aim is to improve the quality of service to retail and corporate clients.

As part of the plan, SBI will connect 260 branches that constitute about 75 per cent of the volume of business of the bank. The plan is expected to be implemented in two years.

Credit offtake from the State Bank increased 16 per cent during the first five months of the fiscal year 1999-2000. For the period-ended August 1999, the figure was Rs.76,690 crore compared to Rs.66,356 crore in th eyear-earlier period. Credit offtake includes total advances, investments in commercial paper, shares, bonds and debentures.

The SBI will shift SBI Cards & Payment Services, the credit card subsidiary of the bank, from the 'subsidiaries and associate banks' group to the 'national banking' group. SBI Cards will now be able to avail of the network facilities that exist with the national banking group, thus helping it access remote areas of the country. SBI’s joint venture company, GE Capital Business Processing Management Services Ltd., in which a majority stake is held by GE Capital, has also been shifted to the national banking group.

The SBI will be soon introduce shifts in some of its branches so as to improve customer service. It has already started extended banking hours in 10 of its branches.
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Exports up, non-oil imports down
New Delhi: In August 1999, Indian exports rose to $3.06 billion, up 10.16 per cent from August 1998, when exports were $2.78 billion. During Apr-Aug 1999, exports rose just 4.62 per cent from the year-earlier period.

Inflows from non-resident Indians were about Rs.85 crore in Jan-Jun 1999.
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Govt. for level-playing field among cellular operators
New Delhi: The government has announced its intention to ensure a level playing field with the entry of Mahanagar Telephone Nigam Ltd., which will have to maintain separate books of accounts for its cellular operations, and will have to pay connectivity charges in the same way the private operators do.

MTNL's revenue sharing agreement with the department of telecommunications would be similar to that of private sector players. Long-distance calls originated at MTNL’s network will be charged fully by the DoT.
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Sundaram Finance in JV with IFC
New Delhi: Sundaram Finance will create a housing finance venture with the International Finance Corporation, the finance arm of the World Bank. According to a report in the Business Standard, the IFC will take a 20 per cent stake in the new company, Sundaram Housing Finance Ltd, which will be formed with an equity of Rs.50 crore.

Sundaram Finance will hold 60 per cent in the new company. The remaining 20 per cent is likely to be sold to foreign institutional investors.
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DoT targets 53 lakh new connections
New Delhi: For the period 2000-2001, the department of telecommunications is targeting 53.3 lakh new telephone connections, 18 per cent more than the target for the current fiscal. For 1999-2000, the targeted figure is 45.5 lakh. During 2000-2001, DoT will also add 1,00,000 km of optic fibre cables.
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LIC must pay, once premium is deducted by employer: SC
New Delhi: The Supreme Court has ruled that the Life Insurance Corporation of India is liable to pay an employee's nominees upon his death, as soon as the employer starts deducting the premium from the employee’s salary. LIC is liable even if the employer does not remit the premium amount to it.
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StanChart to enter mortgaging
Chennai: The Standard Chartered Bank has decided to enter the mortgaging business during the year 2000. It will also focus on customised banking, and widen its client-base. StanChart will open branches in Bangalore and Hyderabad in the next few months.

It has also applied to the Reserve Bank of India for opening four branches in other parts of India. The bank is planning to shift its focus to wealth management services for its middle and upper grade customers.

Stanchart is also about to enter into a credit card deal with Mercard Ltd. of Chennai. Mercard belongs to the M A Chidambaram group.
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Catholic Syrian Bank to issue preference shares
Mumbai: In order to ensure that it achieves the Reserve Bank of India stipulated 9 per cent capital adequacy ratio by March 2000, the Catholic Syrian Bank plans to issue preference shares. Its current capital adequacy ratio is about 6 per cent. Earlier, the bank had issued Rs.16.6 crore worth of subordinated bonds and had also come out with a rights issue.

Its net profit for the year ended 31 March 1999 has slumped by 95 per cent to Rs.0.38 crore from the Rs.7.09 crore in 1997-98. In the same period, business per employee improved from Rs.84 lakhs to Rs.94 lakhs per employee.
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Delhi-Noida highway by May 2001
New Delhi: The Delhi-Noida eight-lane expressway, promoted by the Infrastructure Leasing and Financial Services Ltd., is set for opening in May 2001. The project includes a 552-metre long main bridge, a 22-lane, 300-metre long toll plaza and three minor bridges.

Already, 23 per cent of the estimated cost has been sunk into the project. The ride from Delhi to Noida will take just eight minutes after the project gets completed.
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Maharashtra bans sale of leaded petrol
Mumbai: The Maharashtra state government has announced that only unleaded petrol will be sold at petrol pumps from 2 September 1999. Unleaded petrol, complemented by the regulation that only those vehicles that have the pollution under control certificate will get fuel, is expected to improve the highly polluted Mumbai air.
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Allahabad Bank to disinvest
Bhubaneswar: Public sector Allahabad Bank will divest 25 per cent of its Rs.320 crore equity by March 2000. The company will use the amount for enhancing its capital adequacy ratio and also for funding its expansion plans.

For the financial year-ended 1998-99, the bank has made a net profit of Rs.135 crore compared to the Rs.129.21 crore made in 1997-98.
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