Bangalore airport project: 3 insurers in fray for risk cover
General insurers have pitched for providing construction risk cover for the country's second private sector airport, Bangalore International Airport Ltd (BIAL). Sources here said three insurers - United India Insurance Company Ltd, Oriental Insurance Company Ltd and Bajaj Allianz General Insurance Company Ltd - were in the race to secure the mandate. Construction risk covers offered by these insurers included both property and liability insurance.
Back to News Review index page  

Rakesh Mohan allays fears on inflation
"Inflation cannot go up in India while globally we see low inflation. We have an open market, therefore global conditions will influence us," Rakesh Mohan, Deputy Governor, Reserve Bank of India, said on Wednesday reiterating the apex bank's views on the inflation rate. "When we have an open trade market, even if our share in international trade is small, the prices in our market will not be higher than the international prices since people are free to import,'' elaborated the Deputy Governor.
Back to News Review index page  

Banks reconciled to discount on debt buyback
Public sector bank chiefs from across the country will be in Mumbai on Friday to meet the Finance Secretary, S Narayan, and the top brass of the Reserve Bank of India (RBI) to finalise modalities of the proposed plan for buyback of Government securities. However, the banking industry seems to have reconciled to the fact that it would have to settle for a `substantial' discount on the market price of the debt that would be purchased back by the centre.
Back to News Review index page  

Banks not on the same wavelength on PLR cut
Public sector banks seem to be split on the issue of reducing prime lending rates (PLRs) following the cut in the Bank Rate announced in the Credit Policy.
While State Bank of India had announced a 25 basis points reduction in PLR and deposit rates, there are others such as Bank of India (BoI) and Central Bank of India, which are against an immediate reduction in lending rates.
Back to News Review index page  

GTB promoters offload equity
The promoters of Global Trust Bank (GTB) have offloaded as many as 55.45 lakh equity shares in the open market during the fiscal year ended March 31, 2003. This assumes significance since the capital markets regulator, Securities and Exchange Board of India (SEBI), had suspended a group of 50 entities belonging to the GTB promoters' group and associates of the tainted stock broker - Ketan Parekh - from buying, selling, transferring, pledging or otherwise disposing of their holdings in GTB.
Back to News Review index page  

PSBs seek pref share route for capital expansion
A clutch of public sector banks (PSB) has approached the Government for issuing preference shares to meet their capital enhancement requirements. High-level banking sources said this capital issuance could be made either open-ended or close-ended or with convertible options. But issuing open-ended preference shares with fixed coupon rates would be more in the nature of perpetual bonds. Besides, such forms of capital would require regulatory approval.
Currently banks are permitted to issue only subordinated bonds as part of their Tier II capital subject to a ceiling of 45 per cent of their gross capital.
Back to News Review index page  

RBI to auction Rs 9,000-crore dated papers
The Reserve Bank of India has announced Rs 9,000-crore auction on May 3 through the re-issue of two dated securities through price-based auctions.
The auction will consist of Rs 6,000 crore of the 7.27 per cent 2013 paper and Rs 3,000 crore of the 6.30 per cent 2023 paper in accordance with the auction calendar. Both auctions would be price-based, using the multiple price auction method, said an RBI press release.
Back to News Review index page  

Bank of India launches global debit card
Bank of India has launched `Starlinks' - the Bank of India Visa electron International Debit Card. The bank expects to issue over 2 million Starlinks debit cards in three years and has entered into a partnership with Visa International and India Switch Company , according to the bank officials. Starlinks will be issued to Bank of India's savings bank and current account holders to pay for purchases at over 55,000 Visa Electron merchant outlets in India and over 12 million merchant outlets globally.
Back to News Review index page  

BoI awaits Centre's nod for second VRS
Around 6000 out of the 45,000 employees of Bank of India are keen to leave the bank under the second Voluntary Retirement Scheme (VRS), according to K. V. Krishnamurthy, Chairman and Managing Director. Speaking to press persons here today, Krishnamurthy said, while the bank had already written to the Union Government requesting permission for a second VRS, a reply in this regard was still awaited.
Back to News Review index page  

Lord Krishna to focus on retail lending
Lord Krishna Bank will henceforth concentrate on its areas of core competence: retail lending and niche marketing and not dabble in all spheres of banking. "With this objective in mind, the bank will be looking to increase its credit base among the middle-income and upper middle-income people," Mr R.M. Nayak, Managing Director and Chief Executive Officer of the bank, said. In niche marketing, the bank has already got into tie-ups with ICICI Prudential, Bajaj Insurance and Western Union for money transfer and the focus will be on cross-selling their products to the bank's customers.
Back to News Review index page