IndusInd likely to acquire stake in asset reconstruction co
Bangalore: Indusind bank has launched the Indus Tax Saver Scheme, which is a tax-exempt fixed deposit product.
The bank is also looking at acquiring a stake in one of the two asset reconstruction companies (ARCs).

Bhaskar Ghosh managing director of the bank said IndusInd has no plans to directly acquire bad loans from the market but there was a danger that these portfolios could deteriorate the balance sheet. Entities like Kotak Mahindra Bank are also looking to acquire bad loans and recovering monies. Corporation Bank, too, is planning to partner with Reliance Capital to float an ARC.

Ghosh said the bank would continue to register an annual growth of 30 per cent for loans and about 18 per cent in case of deposits.
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Vijaya Bank to raise Rs 600-cr upper tier-II capital
Kolkata: Vijaya Bank is planning to raise Rs500-600 crore upper tier-II capital in the current fiscal year according to the bank's chairman and managing director Prakash P Mallya. The bank recently raised Rs250 crore lower tier-II capital.

Recently, the bank raised capital at 9.25 per cent interest rate, he added.

Mallya said the bank still had headroom to raise another Rs200 crore capital through lower tier-II bonds. Currently, Vijaya Bank's capital adequacy ratio (CAR) stands at 11.55 per cent.

The bank will take a decision pertaining to revision of its prime lending rate (PLR) in two-three weeks. It had, in May, raised its PLR to 11.25 per cent from 11 per cent.

The bank is eyeing a total business of Rs60,000 crore in 2006-07, compared with last year's figure of Rs46,800 crore.
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NSDL wants quota for retail investors removed
Mumbai: In a report to the Securities and Exchange Board of India on multiple dematerialised accounts, the National Securities Depository Ltd (NSDL) has suggested that the quota for retail investors in initial public offerings be removed till the infrastructure for checking frauds involving multiple accounts for IPO allotments are in place.

Currently, while 50 per cent of the allotment in an IPO is set aside for institutional investors, 15 per cent goes to high-net-worth investors, and the balance 35 per cent is reserved for small investors.

The NSDL report is of the view that there should be a proportionate allotment for small investors instead of a quota, given that they comprise a minuscule proportion of the total market participants.

That the small investor base was not widespread was evident from the fact that there were only 90-95 lakh demat account holders, sources close to the development said.
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Exim Bank signs $40mn lines of credit
Mumbai: The Exim Bank of India signed two lines of credit agreements for $20 million each with Myanmar and Mozambique. The credit would be utilised by Myanmar Foreign Trade Bank for renovation of Thanlyin refinery and the Government of Mozambique would utilise the same amount for electrification of Gaza province in Mozambique.

The Exim Bank has 65 lines of credit worth $2.11 billion, which are available for financing exports to countries in Africa, Asia, Latin America, East Europe, among others, said a press release.
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IDBI loans Rs500-cr to Jet Airways
Mumbai: IDBI has sanctioned a Rs500 crore (about $120mn) loan to Jet Airways to fund the pre-payment of its aircraft acquisition. This is in addition to the $150mn already sanctioned by SBI to the Jet Airways a week ago.

The IDBI loan is for a tenure of two years at an interest rate of 10 per cent. Jet Airways is in the middle of a $2.5bn aircraft acquisition programme, wherein about 85 per cent will be raised through debt.

Jet Airways has been going through a bad patch for the past six months. Increased competition, spiralling fuel prices and a legal battle with the Sahara group have impacted the company's performance. Further the airline reported a Rs45 crore loss in the first quarter of the current fiscal.

Recently the company's scrip has been looking up on the BSE on weaker oil prices and rumours of an out of court settlement with the Sahara group. The Jet Airways stock closed up 2.2 per cent at Rs575 on Friday.
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