Rupee recovers - ends at 43.84/85
Mumbai: The rupee recovered on Friday from a three-week low ending at 43.84/85 per dollar, off an early low of 43.97. The rupee had closed at 43.9450/9550 on Thursday, its lowest since Dec. 17.
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RBI sticks to forecast on economic growth
Mumbai: Dr Y.V. Reddy, RBI Governor, has asserted that the Reserve Bank of India will stick to its forecasts for economic growth and inflation, despite the recent rise in prices of sugar and steel. While there were some price pressures, overall there was no reason yet to revise numbers, Dr Reddy said speaking to presspersons on the sidelines of the Purshotamdas Thakurdas memorial lecture, organised by the Indian Institute of Banking and Finance, here on Friday.

Dr Reddy said RBI was closely monitoring the prices and was continuously looking at global and domestic economic developments.

The wholesale price index-based inflation fell to 6.39 per cent for the week ended December 25, from 6.50 per cent the previous week.
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IOB raises Rs150 crore
Chennai: Indian Overseas Bank has raised Rs150 crore through private placement of 'unsecured redeemable non-convertible subordinated bonds', which will have a tenure of 123 months. The bonds have been rated 'AA+' by CARE.

With this issue, the bank's capital adequacy ratio stands increased at 13.47 per cent, against 12.49 per cent at the end of March 2004.

In a press release, the bank has said that there has been a good pick-up in credit this fiscal. Consequently, the credit-deposit ratio in the first nine months of the current fiscal was close to 240 per cent.
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Tata Finance to merge with Tata Motors
Mumbai: The Tata Group has proposed to merge its non-banking finance company, Tata Finance Ltd with Tata Motors Ltd. The boards of the two companies are slated to meet on January 10 to approve the merger plan, the companies informed stock exchanges today.

Talks of the merger of the two companies have been doing the rounds ever since the Tatas had pumped in over Rs300 crore to save the finance company, which had suffered a loss of over Rs400 crore in 2001-02. Tata Finance is in hire purchase business mainly financing trucks and cars.

In 2001, the company had sacked its Managing Director, Dilip Pendse, and four senior executives as they were allegedly involved in unauthorised financial transactions including diversion of funds to Tata Finance Subsidiary Niskalp Investment and Trading Company.

Tata Motors' finance subsidiary, Bureau of Hire Purchase, and Tata Finance have already started joint marketing under the common brand Tata Motors Finance Ltd. Tata Finance has come out of the debt in 2003-04 and reported a net profit of Rs16.76 crore against a loss of Rs49.66 crore in the previous year. Tata Motors will also consider the merger of its two subsidiary companies Telco Dadajee Dhackjee Ltd and Suryodaya Capital & Finance (Bombay) Ltd with the Company.
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