At present, prior approvals have to be obtained from various authorities, including the Reserve Bank of India and the finance ministry for acquisitions abroad. Infosys says as a result of these stipulations confidential information becomes public and affects the proposed takeovers.
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Inflation rate unchanged
New Delhi: For the week ended 18 September 1999, the inflation rate based on the wholesale price index has remained static at 2.02 per cent. The figure during the corresponding week of 1998 was 8.61 per cent.

With global oil prices rising, the inflation rate is set to rise. Another factor that will affect prices is the increase in overall demand in the economy.
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Good response for MTNL cell service
New Delhi: The Mahanagar Telephone Nigam Ltd started its mobile phone service in New Delhi. MTNL said it will charge Rs 1.40 for a three-minute call. There will be no charge for  incoming calls.

Two other private cellular operators in Delhi -- Airtel and Essar -- are charging Rs 6 per minute for both outgoing and incoming calls. MTNL said it has worked out the charge on the basis of cost and other expenses and claimed the project will be viable.

MTNL received an overwheleming response when booking for the code division multiple access-based service opened on 3 October with at least 2,000 people assembling with applications. MTNL could distribute only 1,000 forms and it said it will activate some 500 connections on 4 October. Up to 9,000 connections are being offered in Delhi. 
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Banks are overstaffed by 22%
New Delhi: Considering that they get business per employee of Rs.1.25 crore per annum, the nationalised banks, including the State Bank of India, have 22.2 per cent of redundant staff. This was revealed in a Ficci study of nationalised banks.

In absolute figures, the SBI has 59,978 excess employees, Vijaya Bank 3,833, Central Bank 17,695, Punjab National Bank, 18,493 and Uco Bank 14,144. These five banks together have a quarter of the excess staff of the nationalised banks.

Compared to the nationalised banks’ average of Rs.1.25 crore, UTI Bank has a business per employee of Rs.10 crore, Bank of America Rs.9.9 crore, and ICICI Bank Rs.5.13 crore.
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Lube companies face squeeze in margins
Mumbai: Owing to a sharp spurt in the price of base oil internationally, Indian lubricant companies are facing shrinkages in their margins. The stiff competition has also prevented them from passing on the price rise to consumers. Base oil is the raw material for the lubricants industry.

Globally, base oil prices have risen from about $180 per tonne in March 1999 to $240 per tonne in September 1999.
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Bank of Rajasthan directors issued removal orders
Mumbai: Six directors of Bank of Rajasthan have been given show-cause notices by the Reserve Bank of India. The bank belongs to the Keshav Bangur group, and all six directors who have been sent the notice belong to the group.

The show cause notice asks why the directors should not be removed, since the bank’s financial position has deteriorated and non-performing assets have mounted. The group’s directors have been blamed for poor financial management of the bank and for taking imprudent decisions.

The six directors will not be allowed to attend the Bank of Rajasthan's annual general meeting to be held in Udaipur on 5 October 1999. An earlier AGM, called on 29 September, was disrupted, allegedly by the Bangur group.
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LTCM about to be wound up
Chicago: US investment fund, Long Term Capital Management is about to be shut down. The bank used to specialise in making risky investments.

While the bank neared a collapse, its creditors, mainly banks, came out with a $3.5 billion rescue package. New York Federal Reserve president, William McDonough, who had arranged the deal, said that he was pleased to announce the shutdown of the bank. Connecticut-based LTCM, headed by former Wall Street investor John Meriwether has almost repaid all its bailout money.
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