S&P raises Indian banks' outlook
Mumbai: Standard & Poor's (S&P) ratings services has raised the outlook for Indian banks from negative to stable. However, the rating agency said risks in the sector are higher than in developed banking markets.

S&P says key structural reforms in India have improved the asset quality, profitability and capital adequacy ratio of banks besides raising transparency and efficiency in the banking system. The asset quality of scheduled commercial banks in terms of gross non-performing assets to loans improved to around 9 per cent in March 2003 from 15.7 per cent in March 1997.
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LIC to invest Rs 70,000 crore this fiscal
Mumbai: Life Insurance Corporation (LIC) will invest around Rs 70,000 crore during the current fiscal. Apart from over 50 per cent investment in government securities, the other half of the massive kitty is scheduled to be deployed in equities, corporate sector bonds and infrastructure projects.

Thus far, in direct competition with other players in the financial sector, particularly with the bankers who are finding it tough to deploy their funds, LIC has already lined up infrastructure projects of NTPC, NHPC, PFC, the Prime Minister Rural Road Project and the Quadrilateral Road Project for a total investment of around Rs 20,000 crore. In 2002-03, LIC had invested over Rs 63,391.18 crore.
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RBI announces 20-year gilt auction
Mumbai: The Reserve Bank of India (RBI) has announced an auction of a 20-year paper for Rs 5,000 crore. This will be held on 3 September. Rs 5,000 crore worth of open market operation (OMO) will follow this on 8 September.

While the 20-year government security will be floated in the primary auction, the OMO sale is through an auction of 16-year 6.05 per cent 2019 gilt.
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