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Tata
Finance board okays preferential issue
Mumbai: The board of Tata Finance Ltd (TFL) has
approved to the issue of such number of equity shares
of Rs 10 each to an aggregate value of Rs 300 crore on
a preferential basis to Tata Sons Ltd and Tata Industries
Ltd at a price to be determined in accordance with SEBI
guidelines. The company, in a notice to Bombay Stock Exchange,
informed that the proposed issue of equity shares will
be subject to the approval of the shareholders under Section
81(1A) of the Companies Act, 1956, as also such other
approvals/exemptions, as may be necessary. The proposed
issue of equity shares on a preferential basis is with
a view to convert the interest free advances given by
Tata Sons Ltd and Tata Industries Ltd in order to meet
the minimum Net Owned Funds requirement under Section
45(1A) of the RBI Act, 1934 and also to meet the Capital
Adequacy Ratio (CAR) stipulated under Non-Banking Financial
Companies Prudential Norms (Reserve Bank) Directions,
1998. TFL is one of the leading non-banking finance companies.
Its primary focus is on providing finance for the hire
purchase of commercial vehicles, four wheelers and two
wheelers. Associate companies of Tata Finance operate
in the distribution of public debt, stockbroking and housing
finance.
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SBI
forms RIB redemption cell to repay investors
New Delhi: State Bank of India has formalised a
RIB Redemption Cell to repay about Rs 25,000 crore to
investors of Resurgent India Bond (RIB), from 1 October.
The RIB Redemption Cell in Delhi, the local head office,
has started accepting redemption applications. "The
last date for submission of redemption of the RIBs is
22 August," G C Jashnani, officer on special duty
for RIBs, said. The maturity proceeds would be paid in
dollars, pounds and euro in case the bondholders continue
to be NRIs or have become a resident in India before the
maturity of the RIBs, he said. Resident Indians can place
their RIB proceeds as term deposits or in resident foreign
currency accounts of SBI. The bank will pay in non-repatriable
Indian rupees at the prevailing forex rates if the bondholder
is a resident Indian.
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ICICI
Prudential to double its agency force
Mumbai: ICICI Prudential, the largest private sector
life insurance company in India with around 4 lakh policyholders,
plans to double its agency force to 40,000 during the
current financial year. The life insurance joint venture
between ICICI Bank, the largest private sector bank in
India, and the UK-based Prudential has paid a total agency
commission of over Rs 36 crore during 2002-03.
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J&K
Bank net up 35% to Rs 97 crore in Q1
Mumbai: Jammu & Kashmir Bank (J&K Bank)
has registered a rise of 35.06 per cent in its net profit
to Rs 97.30 crore for the first quarter of 2003-04 as
compared to Rs 72.30 crore for the corresponding quarter
of the previous fiscal. The total income of the bank has
registered a growth of 16.18 per cent to Rs 475.09 crore
for the quarter ended 30 June 2003 as against Rs 408.90
crore of the corresponding quarter of 2002-03, a statement
said on Friday. The operating profit for the quarter recorded
a jump of 43.70 per cent to Rs 166.78 crore. The credit
portfolio and deposits have increased by 21.70 per cent
and 19.25 per cent respectively during the quarter.
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PNB
plans representative office in London
New Delhi: Punjab National Bank (PNB) is opening
a representative office in London shortly to bolster its
overseas presence. The London office is expected to become
functional before of the end of this month. The bank also
plans to open two more representative offices at Shanghai
and Dubai that are expected to become operational during
the current financial year. PNB already has a representative
office at Almaty, Kazakhstan. The long-term plan of the
bank is to convert such offices into full-fledged branches
or subsidiaries. PNB also has a joint venture with Everest
Bank Ltd, Nepal.
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GIC
to invest Rs 5 crore in biotech venture fund
Mumbai: General Insurance Corporation (GIC) plans
to invest Rs 5 crore in APIDC Venture Capital's Biotechnology
Venture Fund. The fund, which is raising capital commitments
to the tune of Rs 150 crore, is India's first national
fund focussed on biotechnology companies and has recently
received approval from the Insurance Regulatory and Development
Authority for investment by insurance companies. With
the investment commitment of GIC, the biotechnology fund
has reached a corpus of Rs 40 crore. Other commitments
include Rs 15 crore from the Andhra Pradesh government,
Rs 10 crore from Andhra Bank and Rs 10 crore from LIC.
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State
Bank of Patiala, Maruti join hands
New Delhi: Maruti Udyog Ltd has entered into an
alliance with State Bank of Patiala (SBP) for financing
its cars in North India. The two partners will also utilise
each other's existing customer base to cross-sell Maruti
cars and SBP car loans. Further, both of them will also
access each other's distribution networks for promotional
activities. Maruti and SBP will also undertake joint advertising
and promotional activities, the statement said. Earlier,
Maruti had tied up with State Bank of India at the national
level to offer car finance. Since March this year, Maruti
has sold over 7,000 vehicles through its alliance with
SBI, which is currently available in 80 cities.
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Forex
derivative contracts: RBI amends FEMA guidelines
New Delhi: Prior approval of the Reserve Bank of
India (RBI) will not be required now for "persons
resident outside India" to purchase a forward contract
to hedge investments made in the country from 1 January
1993. A RBI notification amending the FEMA regulations
on foreign exchange derivative contracts has now allowed
authorised dealer to offer forward contracts to persons
resident outside India to hedge the investments made in
India since 1 January 1993. The authorised dealers can
offer such forward contracts subject to the verification
of exposure in India. Further, the RBI has stipulated
that such forward contracts once cancelled cannot be rebooked.
Prior to the latest change, the FEMA regulations on foreign
exchange derivative contracts provided that: "Reserve
Bank of India may, on application, allow a person resident
outside India to purchase a forward contract to hedge
his investment made since 1 January 1993.
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