Wednesday, December 22, 1999
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B U S I N E S S | Wednesday, December 22, 1999 |
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CII divided over bank closure
proposal MUMBAI, Dec 21 — CII today stood divided over its controversial proposal to close down three ‘‘weak’’ public sector banks with its president Rahul Bajaj standing by the recommendation, thus repudiating the stance taken by the chamber’s Director General Tarun Das. Kothari Pioneer to issue 1:1 bonus NEW DELHI, Dec 21 — Close on the heels of its first dividend declared in October 1999, Kothari Pioneer Infotech Fund today announced its second dividend of 60 per cent. Bank deposits go up 14.5 pc CHANDIGARH, Dec 21— Mr Rashid Jilani, Chairman of PNB, said today that in the present competitive banking scenario, the recovery of banks’ dues has assumed importance. |
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Goindwal units to hold protest
march
Core sectors record 8.2 per cent
growth Infosys,
SBI ranked best Escotel to turn loans into equity MTNL
for cut in Govt stake |
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CII divided over bank closure proposal MUMBAI, Dec 21 (PTI) — CII today stood divided over its controversial proposal to close down three ‘‘weak’’ public sector banks with its president Rahul Bajaj standing by the recommendation, thus repudiating the stance taken by the chamber’s Director General Tarun Das. Bajaj told reporters here that CII stood by its recommendations to close down the three weak public sector banks and was also in favour of disclosure of the list of corporate defaulters. Amid mounting opposition from unions and management of the banks, Das had said yesterday that the chamber had asked the government not to consider recommendation on closure of Indian Bank, Uco Bank and United Bank of India ‘‘keeping the sentiments of the banks, employees and management in mind.’’ Stating that the recommendation of the national task force (NTF) on banks, headed by ICICI managing director K.V. Kamath, was not withdrawn under pressure, Das had told PTI: ‘‘We suggested closure of banks in the absence of funding requirement. Maybe, we did not work out a comprehensive plan for the closure.’’ “NTF’s suggestion for closure of the three weak banks — Indian Bank, United Bank and Uco Bank — is only recommendatory in nature and unfortunately only this point got highlighted among the 26 other recommendations made by it,” Bajaj told newspersons here on the sidelines of the 49th convocation of SNDT Women’s University. “CII is all for bringing out the names of the loan defaulters into the open by carrying out suitable changes in the Banking Regulation Act of 1934 which precludes banks and FIs from disclosing the names of defaulters,” Bajaj said. The NTF had, in regard to the weak banks, suggested that they be taken over by a healthy bank, employees given a good severance package and NPAs sold at a sharp discount. “Implementing these suggestions will cost the exchequer a whopping Rs 7,000 crore,” Bajaj explained. “We appreciate and sympathise with the position of the bank unions and management,” he added. Bank employees in the Nariman Point area today held demonstrations demanding that the CII report be scrapped totally. CHANDIGARH (TNS): In a
press statement here on Tuesday, CII clarified that no
member of the CII’s NPA Task Force is a
“defaulter”. The reported allegation that
“Mr Rahul Bajaj and Mr Arun Bharat Ram are
defaulters” to nationalised banks is not correct. |
Kothari Pioneer to issue 1:1 bonus NEW DELHI, Dec 21 (PTI) — Close on the heels of its first dividend declared in October 1999, Kothari Pioneer Infotech Fund today announced its second dividend of 60 per cent. The fund also declared a 1:1 bonus for all Infotech Fund Investors who are with the fund as of January 12, 2000, a company release said here. Kothari Pioneer Infotech Fund had declared its first dividend of 40 per cent in October 1999, thus taking the total dividend payout of 100 per cent in the current year. All investors registered in the dividend plan of the fund as of closure on January 12 are entitled to this tax-free dividend, the release said. “High quantum of
dividend and bonus was made possible by the good
performance of the fund,” Chief Executive of Kothari
Pioneer AMC Vivek Reddy said in a release. |
Punjab for cess on big units LUDHIANA, Dec 21 — The Punjab Government, which is establishing an industrial renewal fund for the sick SSIs, is toying with the idea of levying a cess on profits of medium and large companies to raise money for the fund. Announcing this here today, the Principal Secretary, Industries, Mr Ramesh Inder Singh, said SIDBI had also committed Rs 4 crore for the purpose. While medium and large industries had the option of going to the BIFR if they fell sick, this facility was not available to small industries, he told TNS. The industrial renewal fund will provide technological and human resource guidance in addition to funds to needy small units. Mr Ramesh Inder Singh also addressed a meeting of SSIs and the Planning Commission task force on technological upgradation for SSIs organised here by the PHDCCI. The meeting was presided over by Dr J.S. Juneja and attended by representatives of the industry from all over the region. Mr Ramesh Inder Singh made an open offer to the industry to take over the various R&D centres set up by the Government in the State. Dr Juneja described
Ludhiana as the “Mecca of small industries” and
said it was praiseworthy that despite complaints of
corruption, red-tapism and a negative mindset on the part
of the Government, the SSIs were surviving. |
Bank deposits go up 14.5 pc CHANDIGARH, Dec 21— Mr Rashid Jilani, Chairman of PNB, said today that in the present competitive banking scenario, the recovery of banks’ dues has assumed importance. He was presiding over the 71st meeting of the State Level Bankers Committee held to review the performance of banks in Punjab from October 19, ‘98 to September 1999. The aggregate deposits increased by 14.5 per cent, the gross credit by 13.4 per cent, while the priority sector advances grew by 18 per cent. Mr K.R. Lakhanpal, Principal Secretary, Finance, Punjab, said poverty alleviation programmes should be delinked from those for rural development. He said thrust is being laid on strengthening infrastructure. Mr S.K. Chawla, PNB General Manager, who is to retire in February next year, said banks have achieved the overall half yearly targets in the State. All banks in the State have made their computer systems Y2K compliant. The banks have formulated contingency plans to tackle any eventuality. Mr K.Vijayaraghavan, RBI Regional Director, said the report on technology upgradation for the banking sector should be implemented within a specified time-frame. Prominent among those
present were Mr C.P. Swarnkar, GM, PNB, Mr N.R.Kannan,
Chief General Manager, NABARD, Mr D.S.Guru, IAS, Mr
C.Roul, IAS, Mr Sukhbir Singh, GM, RBI, Mr B.K.Batra,
General Manager, IDBI, Mr N.S.Kang, PFC Managing
Director, and Mr Karnail Singh Dhaliwal, Director , KVIC.
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Indian Rayon grabs Madura Coats unit MUMBAI, Dec 21 (PTI) — Aditya Birla group’s Indian Rayon and Industries Ltd today announced acquisition of Madura Garments, readymade garments division of Madura Coats Ltd, including rights for its premium brands in SAARC and Middle East regions for a total consideration of Rs 236.23 crore. The acquisition of Madura Garments and international brands such as Louis Philippe, Van Heusen, Allen Solly, Byford, Peter England and SanFrisco would catapult the Indian Rayon group as India’s largest branded apparel company. Indian Rayon will acquire Madura Garments from Madura Coats, a subsidiary of Coats Viyella Plc, UK, together with all the employees, brand licences, distribution and manufacturing networks for a consideration of Rs 189.23 crore and will become the owner/licensee for India for the premium brands. DSP Merrill Lynch acted as the investment banker to Indian Rayon for the acquisition, while Ernst & Young carried out the due diligence. The acquisition of brand
rights for the two regions will help Indian Rayon export
branded garments in these territories by leveraging
India’s well established skill base in the textile
industry using state-of-the-art technology obtained from
world’s leading garment manufacturers, Indian Rayon
said. |
Goindwal units to hold protest
march TARN TARAN, Dec 21 — The Goindwal Industrial Welfare Association at a meeting today at Goindwal Sahib decided to organise a protest march from Goindwal Sahib to the SDM court, Khadoor Sahib, on December 22 in which entrepreneurs workers, panches and sarpanches of the area would participate. The meeting condemned the government’s indifference towards Goindwal Sahib, India’s first nucleus industrial complex which has shrunk to be a small industrial focal point during the last 19 years. The Government has failed to establish industrial units here as promised in its Master Plan, it said. More than 100 out of 155
units have either closed down or been locked up by the
PFC during this period, said Mr J.S. Dhillon, President
of the Association. |
Core sectors record 8.2 per cent growth NEW DELHI, Dec 21 (PTI) — Six core sectors including power, steel and cement, recorded 8.2 per cent growth during April-November 1999, up from 2.6 per cent in the corresponding period last year, reflecting accelerated industrial growth. Accounting for more than one-fourth of the total weight of Index of Industrial Production (IIP), these industries had recorded a 8.3 per cent growth in the first seven months of the current financial year. November saw a significant growth rate of 7.3 per cent, though lower than 8.9 per cent recorded in October, over the same period last year for the core industries, according to an official release here today. High growth was led by
petroleum refinery products posting a growth rate of 20
per cent during April-November followed by cement growing
at 16.9 per cent, steel 11.4 per cent, power 7.6 per cent
and crude petroleum at 0.4 per cent. |
Infosys, SBI ranked best NEW DELHI, Dec 21 (PTI) — Infosys has been adjudged the “best managed company in India” by 176 institutional investors worldwide interviewed by ‘Asiamoney.’ The magazine also ranked the State Bank of India as the “best bank” in India saying it should be pleased to top the poll ahead of its strong competitors within India’s banking sector. The magazine said: “Infosys performed well across the board in our ranking. Investors clearly have a great deal of faith in management’s ability to profit from the opportunities.” The infotech company does a good job in communicating its actions and its intention, Will Goodhart, Editor of the magazine said in a statement today. The rest of the four slots among the top five ranking in India were taken by Hindustan Lever, Reliance Industries, Ranbaxy Laboratories and Punjab Tractors. SBI, was adjudged as number one based on criteria including total assets, profitability, liquidity and leverage. The entire exercise of
finding the best banking outfits in Asia was aided by
quantitative data supplied by bank rating agency Thompson
Financial Bankwatch, Asiamoney said. |
Escotel to turn loans into
equity NEW DELHI, Dec 21 — Escotel will convert its loans and interest accumulated thereon to the tune of Rs 135 crore into equity. Conversion of loans and interest would increase the equity to Rs 445 crore from April 1, 2000 against Rs 310 crore now, CEO of Escotel Mobile Communications Limited Manoj Kohli said. Escotel also launched “India Card”, compatible with all SGM handsets and targeted at NRIs and overseas tourists visiting India. The card is available for periods of 15 days and 30 days for Rs 2,100 and Rs 2,625 respectively. The card is available in
two variants — North option and South option. |
MTNL for cut in Govt stake NEW DELHI, Dec 21 (PTI)—Mahanagar Telephone Nigam Ltd (MTNL) Chief S Rajagopalan today favoured reduction of Government stake in the company to below 49 per cent so that it could effectively compete with counterparts in private sector. "If level playing field has to be provided to MTNL to compete effectively with private counterparts, the Government controls will have to go," MTNL Chairman and Managing Director Rajagopalan told reporters. "If I do something
wrong, I should be held responsible. But I should be
allowed to perform as an owner of the company," he
said at a meeting organised by CII. |
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