HSBC acquires 20% stake in UTI Bank
Mumbai: HSBC has bought 20.08-per cent stake in UTI Bank from private equity firm, CDC Capital Partners, at around Rs 90 per share. According to SEBI norms, HSBC's latest acquisition will attract an open offer. This is the second acquisition by a foreign bank in India in the recent past, the first being that by Dutch bank, ING group, in Vysya Bank.

HSBC is believed to have bought the 20.08 per cent stake from two private funds - 12.37 per cent from CDC Financial Services (Mauritius) Ltd and 7.71 per cent from the CDC-controlled South Asia Regional Fund.
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RBI moots stabilisation fund, standing deposit facility
Mumbai: The Reserve Bank of India has made two suggestions to manage the excess liquidity in the system in the absence of adequate volume of Government securities to undertake "sterilisation" operations. These are creating a market stabilisation fund (MSF) and instituting a standing deposit facility, says a report. At present, the RBI is neither permitted to borrow money from banks and pay interest on it nor issue securities. MSF and the deposit facility could overcome this problem, two working groups set up by the RBI have suggested.

According to the draft report of the working group released on Tuesday, the MSF could be created by floating new market stabilisation bills and bonds (MSBs). These instruments could be used in addition to the present Liquidity Adjustment Facility. The fund account would be maintained and managed by the RBI. The maturity, amount, and timing of issue of MSBs may be decided by the RBI in consultation with the Government depending, among others, on the expected duration and quantum of capital inflows, and the extent of sterilising such inflows.
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ABN Amro unveils new working capital product
Mumbai: ABN Amro Bank has launched 'Working Capital'. The product, which has been launched the world over, is now attracting Indian companies. The largest integrated energy player in India has reportedly signed up for the same. ABN Amro Bank managing director (Working Capital) Ann Cairns said local companies have a lot of liquidity and their ability to reduce cost is tremendous. With local companies going global, unlocking working capital trapped in traditional supply chains should be a priority.

Cairns said business realities demand a new rigour of thought about working capital management. "Most companies can unlock cash trapped in their own business. What it takes is an understanding of the synergies and linkages across their financial supply chain, the ability to exploit maturing technologies and confidence to innovate."
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Nadar Mahajana Sangam tells CLB to dissolve TMB board
Chennai: The Nadar Mahajana Sangam, the association representing the Nadar community, has urged the Company Law Board (CLB) to dissolve the existing board of directors of the beleaguered Tamilnad Mercantile Bank (TMB) and form a new board with active participation from the community and the CLB. They have also asked the Reserve Bank of India (RBI) not to approve transfer of 34 per cent shareholding in the bank to C Sivasankaran of the Sterling group of companies. The Sangam accused the existing management of being in cahoots with Sivasankaran and working against the interest of the Nadar community.

G Karikolraj, general secretary of the Sangam, said: "The CLB in the interest of the Nadar community and the bank should disband the existing board of directors. A new set of directors have to be put in place with representation from the Nadar community and the CLB after conducting elections."
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