RBI issues tax-free bonds for CPSUs
Mumbai: The Reserve Bank of India has issued tax-fee bonds of Rs 20,395.036 crore under the central government's scheme of one-time settlement of dues of central public sector undertakings (CPSUs) owed by state electricity boards (SEBs). The first tranche of these bonds covering 17 states carry an interest rate of 8.5 per cent. These bonds were issued after almost two years since a high-level committee headed by the former union finance secretary Montek Singh Ahluwalia had submitted its report to the Centre in the middle of 2001.

Ministry of power sources were quoted as saying that the securities have already been credited to the subsidiary constituent general ledger account of CPSUs. The list of CPSUs with the bonds worth the arrears owed by SEBs are as follows National Thermal Power Corporation: Rs 11,503.246 crore, National Hydro-electric Power Corporation: Rs 1,751.15 crore, PowerGrid Corporation: Rs 1,274.82 crore, Nipco: Rs 709.366 crore, Damodar Valley Corporation: Rs 589.156 crore, Coal India Ltd: Rs 680.35 crore, Neyvelli Lygnite Corporation: Rs 259.772 crore and Nuclear Power Corporation Ltd: Rs 1,296.61 crore.
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Dhanalakshmi Bank forays into life insurance with MetLife
Kochi: Dhanalakshmi Bank has ventured into life insurance, for which it has tied up with MetLife India to launch a co-branded product. Bank managing director and CEO B Muthuswamy said the new product, DhanLife, is designed specially for its accountholders. With an annual premium of Rs 365 which averages to Re 1 a day, this yearly renewable group insurance plan provided a life cover of Rs 1 lakh with an accidental death benefit cover of an additional Rs 1 lakh.

The plan is for customers in the age group of 18-40. Besides, the bank will market other products of MetLife and will soon be entering non-life business, talks for which were at an advanced stage. MetLife chief marketing officer Suraj Kelly said the company's tie up with the bank was the second in the state. Kerala offered good business and it offered the highest revenue from premium this year.
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Koehler predicts 4% global growth in 2004
Kuala Lumpur: The world economy should grow by four per cent in 2004 with Asian economies among the bright spots, Horst Koehler, the managing director of the International Monetary Fund (IMF), said. "Overall, the IMF expects global growth to gather strength in the coming months and to reach about four per cent in 2004."

While uncertainties remain, prospects for a recovery in the global economy really have improved, he added. According to a revised draft report obtained by Reuters in London last week, the IMF is set to maintain its global growth forecast of 3.2 per cent for 2003. Its forecasts are due to be published in the IMF's World Economic Outlook this month.
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BoB focus on financing corporate sector continues
Mumbai: Bank of Baroda will continue its thrust on financing industry and corporates. This is despite a 28-per cent rise in non-performing assets due to wilful defaults in the last fiscal. The bank's strategy to focus on corporates emanates from its perception that the quantum of lending to retail segment despite witnessing a significant increase in number of borrowers, may not be substantial enough, in terms of amount lent and the segment might in due course reach a point of saturation.

The bank has been focussing on retail lending due to large existing untapped potential in the segment and with a view to deploy available funds profitably in the face of low demand from large corporates. Amid the current scenario, financing corporates and industry will be the bank's mainstay.
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