CII forecasts dismal growth rate
New Delhi: Confederation of Indian Industry (CII), has expressed concern that reforms were not being implemented at the desired pace because of which the gross domestic product (GDP) growth rate might be adversely affected.

CII said the countrys GDP growth might not exceed 5.25 per cent this year as little had happened in terms of reforms and deficits were spinning out of control.

This is worse than 1991-92 and is close to the disaster mark of 1990-91. The CII does not see any major upturn till the end of 2001-2002, given the current economic outlook and the state of economic governance at the Centre and states.
Back to News Review index page  

SBI reduces deposit rates
Mumbai: The State Bank of India (SBI) has reduced its term-deposit rates by a maximum of 50 basis points (bps) with effect from September 10. The move might prompt other bankers to follow suit.

SBI reduced interest rates to 6.75 per cent for all fresh deposits and renewals which have maturity period of less than 1 year. Deposit rates for longer maturities have been cut by 50 bps.

Deposits with maturities of two years to less than three years category will now carry 8 per cent (8.50 per cent) interest rate and three years and above category will carry 8.50 per cent (9 per cent) interest rates.

The Reserve Bank of India (RBI) has cut the bank rate twice this year by 100 bps to seven per cent - its lowest level since 1973 - to revive growth.
Back to News Review index page  

India's foreign reserves cross $45 bn
Mumbai: India's foreign currency reserves crossed the $45 billion mark during the week ending August 31, 2001. The foreign currency assets increased to $42,537 million, up by $360 million, according to the Reserve Bank of India (RBI).

The country's gold reserves also grew by $46 million to $2,817 million while the special drawing rights remained unchanged at $4 million. The foreign currency assets expressed in US dollar terms include the effect of appreciation/depreciation of non-US currencies such as Euro, Sterling and Yen.

The loans and advances by RBI to central government rose by Rs 9,453 crore from a nil balance in previous week while that to the state governments increased by Rs 378 crore to Rs 4,190 crore, RBI said.
Back to News Review index page  

U.S. unemployment jumps
New York: Unemployment rate in the United States of America jumped to its highest point in four years in August, as employers cut far more jobs than economists had expected.

The unemployment rate rose to 4.9 per cent in August from 4.5 percent in July, while employers cut 113,000 jobs outside the farm sector.

The unemployment rate was the highest since a 4.9 per cent reading in September 1997.
Back to News Review index page  

American bank threatens to encash Rs 1400-crore guarantee
New York: The US Exim bank has threatened to encash the Rs 1,401.5 crore guarantee given to it by IDBI-led consortium of Indian financial institutions (FIs) for seeking finance for Enron's Dabhol Power Company (DPC),

In its submission to the Mumbai high court, the US Exim bank said it would be compelled to draw upon the guarantees given to it by the Indian financial institutions if the DPC was unable to repay the loan advanced by the bank.

The bank said it was a beneficiary of a guarantee from a syndicate of Indian FIs--IDBI, IFCI Ltd, ICICI Ltd, State Bank of India and Canara Bank.

The bank said of the $298.2 million advanced to DPC, approximately $ 221.7 million of principal remains outstanding and was owed by the US energy major to it.
Back to News Review index page