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IDBI Bank to merge with parent organisation
Mumbai, July 29
Capping several months of speculation, the Industrial Development Bank of India (IDBI) has decided to merge its subsidiary, IDBI Bank, with itself. According to a statement by IDBI chairman M. Damodaran, the combined entity will emerge as a major bank comparable only with the State Bank of India (SBI).

  • Bailout grant

  • 55 pc less profit

Vijay Mallya, Chairman of UB Group, flanked by a group of models at the launch of Kingfisher Airlines in Mumbai

Vijay Mallya, Chairman of UB Group, flanked by a group of models at the launch of Kingfisher Airlines in Mumbai on Wednesday. — PTI

Vaisheshika wins National Award
Ambala, July 29
Ambala cantonment-based Vaisheshika Electron Devices, whose instruments have been used in national defence projects, including light combat aircraft, has been selected for the prestigious National Award for quality products in instrumentation for 2002.

TCS issue off to slow start
Mumbai, July 29
The Initial Public Offer (IPO) of Tata Consultancy Services (TCS) has been subscribed by 60 per cent at a price band of around Rs 800 on Thursday, the first day it opened.


Mr Sunil Mittal, Chairman and Managing Director, Bharti Tele-Ventures Ltd, addresses the media at Shimla
Mr Sunil Mittal, Chairman and Managing Director, Bharti Tele-Ventures Ltd, addresses the media at Shimla on Thursday. The company will invest Rs 50 crore to extend its mobile phone network to 33 more towns and clusters in Himachal Pradesh by March 2004. — Photo by Anil Dayal

EARLIER STORIES

 

Tata Steel Aviation Services display various types of aeroplanes at the Tatanagar Aerodrome Ground, on the occasion of JRD Tata’s birth centenary celebrations in Jamshedpur on Thursday.Flying on JRD’s dream, A-I to expand
Mumbai, July 29
Air-India intends to have a 70-plus fleet in the next couple of years to place the national carrier among the top international airlines of the world and take it to the heights that J R D Tata dreamt of, its Chairman and Managing Director V. Thulasidas said today.

Tata Steel Aviation Services display various types of aeroplanes at the Tatanagar Aerodrome Ground, on the occasion of JRD Tata’s birth centenary celebrations in Jamshedpur on Thursday. — PTI photo

Orient Fans gets order from USA
Amritsar, July 29
The largest fan manufacturer of India, Orient Fans, has received a big order from a reputed store, Walmart of the USA, for the supply of 75,000 fans this year.

Bank Account

Andhra Bank net rises 27 pc
New Delhi, July 29
Andhra Bank today reported a 27 per cent growth in net profit at Rs 150.16 crore in the first quarter of this fiscal.

  • Canara Bank

  • IndusInd Bank

  • J & K Bank

  • Centurion Bank

  • Corporation Bank

  • UCO Bank

  • Graphic: Bank lending to SSI

Corporate News

46 pc decline in HLL profit
Mumbai, July 29
A bruising battle with consumer goods multi-national Proctor and Gamble is hurting Hindustan Lever Ltd, the poster boy of marketing.

  • Dabur Pharma

  • Lupin

  • Ashok Leyland

  • Sail

  • Finolex Cables


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IDBI Bank to merge with parent organisation
Tribune News Service and PTI

Mumbai, July 29
Capping several months of speculation, the Industrial Development Bank of India (IDBI) has decided to merge its subsidiary, IDBI Bank, with itself. According to a statement by IDBI chairman M. Damodaran, the combined entity will emerge as a major bank comparable only with the State Bank of India (SBI).

The decision was taken at the IDBI board meeting at Hyderabad this morning. Similarly, IDBI Bank in its board meeting in Mumbai approved the proposal of merging the first-generation bank with its parent IDBI.

IDBI is following the steps of ICICI, which transformed itself into a bank to tap the lucrative retail banking sector.

Mr Damodaran told reporters that the IDBI merger would happen in the current financial year. He said the two entities would now work out the share-swap ratio, complete the valuation and seek shareholders and regulators nod.

The new entity would “reposition” itself as a bank that focuses on development financing as mandated in legislation, while offering retail banking facilities, Mr Damodaran said.

Asked whether IDBI would aim at overtaking ICICI Bank, which emerged as the second biggest commercial bank following the reverse merger with ICICI, Mr Damodaran said, “We have decided to use SBI’s size as the right benchmark.”

“Therefore, anything smaller than SBI is not a good enough benchmark for us,” he said, adding the merger of IDBI and IDBI Bank was the first step towards attaining the size and strength that can be comparable with the bigger players.

Both, ICICI and IDBI were formed by the Acts of Parliament.

Bailout grant

According to reports, the deal would help IDBI, which is burdened with huge non-performing assets, to turn around. The government has already announced a bailout package of Rs 90 billion to help save IDBI.

The Rs 9,000 crore budgetary provision for Stressed Asset Stabilisation Fund will have a ‘positive impact’ on IDBI, international credit agency Fitch said today.

“The move aims to resolve the legacy asset quality problems of IDBI through the transfer of its non-performing loans to a Special Purpose Vehicle (SPV),” Fitch said, adding it would have a positive impact on the FI.

Fitch , however, cautioned this assistance would only partially address IDBI’s asset problems. The FI has other problem assets that are not reported as such due to technical reasons.

55 pc less profit

IDBI has posted a net profit of Rs 23 crore in the first quarter of this fiscal, which is 55 per cent lower than Rs 51 crore recorded in April-June 2003.

The total income during the quarter stood at Rs 1,598 crore as against Rs 1,379 crore in April-June 2003, IDBI informed the Bombay Stock Exchange today.

The financial institution, slated to become a banking entity under Companies Act, has extended its financial year 2003-04 till September 2004.
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Vaisheshika wins National Award
Rahul Das
Tribune News Service

Ambala, July 29
 Anil Jain Ambala cantonment-based Vaisheshika Electron Devices, whose instruments have been used in national defence projects, including light combat aircraft, has been selected for the prestigious National Award for quality products in instrumentation for 2002.The award has been announced by the office of Development Commissioner, Small Scale Industry, Government of India.

Talking to The Tribune, the president of the company, Dr Anil Jain, said he was delighted on his company being selected for the National Award. “Vaisheshika Electron Devices has specialised in the manufacture of resistance calibration standards, temperature, pressure and force standards. The instruments of our company have been used in light combat aircraft, Jaguars and MiG projects of the Indian Air Force,” he said.

He stated that the Indian Space Research Organisation and Hindustan Aeronautics Limited have been using Vaisheshika calibration standards in Polar Satellite Launch Vehicle and Advanced Light Helicopter projects. “We are exporting instruments to Sudan, Ethiopia, Singapore and Malaysia,” he said.

Dr Anil Jain, who is also Adjunct Professor at BITS, Pilani, said recently the company installed and commissioned a 50-KN capacity dead weight calibrator at the National Physical Laboratory and a 250-ton universal calibrating machine for the calibration of load cells at the Defence Research and Development Laboratory in Jagdalpur, Orissa.

“We are maintaining high standards of technology, research and development by having technical collaboration with the Central Scientific Instruments Organisation, Chandigarh, as well as Birla Institute of Technology and Science,” he said.

Dr Anil Jain stated that they had recently started manufacturing agri-electronics instruments like Digital Iodine Value Meter, Digital Oil Spectrophotometer and Digital Cereal Grain Analyser for the oil and pulses industry under the technology modernization programme of the ministry of Agriculture. 
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TCS issue off to slow start
Tribune News Service

Mumbai, July 29
The Initial Public Offer (IPO) of Tata Consultancy Services (TCS) has been subscribed by 60 per cent at a price band of around Rs 800 on Thursday, the first day it opened. According to information put out by the Bombay Stock Exchange (BSE), there has been a great demand for the scrip from institutional investors who have exceeded their share of the issue.

According to stockbrokers here, the TCS issue has been slow to pick up since the face value of every share is just Re 1. TCS hopes to mobilise as much as US $ 3 bn from the IPO. The scrip has been put on a price band of Rs 775 to Rs 900.

About 60 per cent of the total TCS share issue has been reserved for institutional investors. The offer is expected to gain momentum in the coming days before it closes on August 5.

The shares are a combination of a fresh issue and an offer for sale by existing shareholders, together accounting for 13 per cent of the enlarged capital base.
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Flying on JRD’s dream, A-I to expand

Mumbai, July 29
Air-India intends to have a 70-plus fleet in the next couple of years to place the national carrier among the top international airlines of the world and take it to the heights that J R D Tata dreamt of, its Chairman and Managing Director V. Thulasidas said today.

Addressing a gathering of 3,000-plus Air-India employees at the old Airport Complex in Santacruz, North-West Mumbai, on the birth centenary of J R D Tata, the father of Indian Civil Aviation, he said, “We have already submitted a plan to the Ministry of Civil Aviation for acquisition of aircraft. Another plan is being prepared. We want to have a fleet of over 70 aircraft from the present fleet of a little over 30.”

Mr Thulasidas said an ambitious plan for growth is also ready and the capacity will be increased on major routes to Europe and the United States.

Besides this, Air-India Express Ltd is also being set up to service routes to the Gulf and South-East Asia. “This will have a lower cost structure,” be pointed out.

The Air-India chief said that there will also be outsourcing in “certain sections” and the carrier will restructure itself with a human face. “We have to grow in terms of yield, profitability, size, fleet and meet the customer needs in the emerging civil aviation scenario, the main focus of which is stiff competition,” he added.

Meanwhile, Union Civil Aviation Minister Praful Patel today unveiled the statue of JDR Tata, founder of Tata Airlines, to mark his birth centenary celebrations. — UNI, PTI
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Orient Fans gets order from USA
Our Correspondent

Amritsar, July 29
The largest fan manufacturer of India, Orient Fans, has received a big order from a reputed store, Walmart of the USA, for the supply of 75,000 fans this year.

The Sales Manager of the Orient Fans, Mr N.N. Sharma, told The Tribune here today that the company was expected to make 25 lakh fan units this year. This would be 10 per cent more than last year. He added that they had exported more than 5.7 lakh fans during the year.

The fans have captured markets in West Asia, Africa, Sri Lanka, Bangladesh and Nepal. He added that the company was hoping to also enter Pakistan as trade agreement under SAAFTA was expected to be formalised by 2005.

Earlier, Mr Sharma presided over a dealers’ meeting from Punjab, Himachal Pradesh, Jammu and Kashmir and Chandigarh and distributed incentives to them for exceeding their targets.
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Bank Account

Andhra Bank net rises 27 pc

New Delhi, July 29
Andhra Bank today reported a 27 per cent growth in net profit at Rs 150.16 crore in the first quarter of this fiscal.

The bank’s income dipped marginally to Rs 755.28 crore in April-June 2004 from Rs 758.06 crore in the year-ago period, the bank said in a release.

Despite the fall in income, Andhra Bank improved its profits to Rs 150.16 crore in the first three months of 2004-05 from Rs 118.67 crore in the year-ago period.

Canara Bank

Canara Bank has paid a dividend of Rs 75 crore to the government, its principal shareholder.

The dividend cheque was handed over by bank Chairman and Managing Director R V Shastri to Finance Minister P Chidambaram here.

Taking into account the interim dividend already paid, the total dividend payout by the bank to the government for the entire 2003-04 amounted to Rs 150 crore at 50 per cent compared to 35 per cent last year, a bank release said.

IndusInd Bank

IndusInd Bank has posted a 84.57 per cent rise in its net profit to Rs 45.48 crore in the first quarter ended June 30, 2004 as against Rs 24.64 crore in Q1 of 2003-04.

The total income during the April-June quarter rose 51.12 per cent to Rs 337.3 crore as against Rs 223.2 crore in April-June 2003, the private sector bank said in a statement here today.

J & K Bank

Jammu and Kashmir Bank has raised the limit for Foreign Institutional Investors (FIIs) from 24 per cent to 33 per cent of the bank’s paid-up equity capital.

“The bank is approaching the Reserve Bank of India for the necessary approvals in this regard,” the Srinagar-based bank said in a statement here.

J&K Bank had earlier received the approval of shareholders at an Extraordinary General Meeting for increasing the limit, which will increase the bank’s weightage in the international market.

Centurion Bank

Centurion Bank Ltd’s rights issue of Rs 90.8 crore is expected to open on August 16 even as the bank plans to convert its 14 marketing offices into branches shortly.

“The rights issue for equity shares at face value of Rs one and a premium of Rs three is expected to remain open for a month till September 15,” Centurion Bank COO Anil Jaggia told reporters after announcing a tie-up with Kuoni Travel India and Western Union here today for money transfer service.

The allotment would be complete by September 30, he said, adding that after rights issue, the capital adequacy ratio of the bank would be around 9.3 per cent.

Corporation Bank

Corporation Bank has posted a net profit of Rs1,055.10 million for the quarter-ended June 30, 2004 as compared to Rs1,264.30 million for the quarter-ended June 30, 2003. Total income also decreased from Rs 6,630.90 million in the June quarter of 2003 to Rs 6,527.90-million in the quarter-ended June 30, 2004.

UCO Bank

UCO Bank has reported 4.4 per cent growth in net profit at Rs 142 crore for the first quarter of 2004-05, from Rs 136 crore during the same period last fiscal. Announcing the financial results here, UCO Bank chairman V.P. Shetty said the bank has set a target to cross Rs 1,00,000 crore business by 2006-07. — TNS, Agencies
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Corporate News

46 pc decline in HLL profit

Mumbai, July 29
A bruising battle with consumer goods multi-national Proctor and Gamble is hurting Hindustan Lever Ltd, the poster boy of marketing.

The company, which has been marking down the prices of its products, has suffered a whopping 46 per cent decline in net profit at Rs 244.49 crore for the second quarter ended June 30, 2004 as compared to Rs 450.93 crore for the quarter ended June 30, 2003, according to a company statement.

According to a press note issued to the BSE today, the total income for the quarter ended June 30, 2004 is at Rs 2641.90 crore as compared to Rs 2799.58 crore for the quarter ended June 30, 2003.

The board has recommended an interim dividend of Rs 2.50 per share for the year ending December 31, 2004.

M.S.Banga, Chairman, commented, “In an unprecedented competitive scenario, we have held volume market shares in most categories, notably in laundry and shampoo. Competitive pricing and higher brand support have impacted our profits in the short-term.”

Dabur Pharma

Cancer drug maker Dabur Pharma Ltd (DPL) today said its net profit in the fiscal first quarter increased 9 per cent to Rs 4.9 crore from Rs 4.5 crore in the year-ago period. Its turnover in the April-June quarter of this fiscal has risen by 11 per cent to Rs 58.8 crore from Rs 52.9 crore a year earlier.

Lupin

Leading drugmaker Lupin Ltd today said its net profit in the fiscal first quarter’ fell 26 per cent to Rs 20.64 crore from Rs 28.06 crore a year earlier. However, its sales in the April-June quarter of this fiscal rose to Rs 300 crore from Rs 260 crore in the year-ago period. The Mumbai-based pharma firm said its research and development expenditure jumped to Rs 17.29 crore from Rs 5.37 crore.

Ashok Leyland

India’s second-largest truck and bus-maker Ashok Leyland Ltd today said its net profit in the quarter ended June 30, 2004, more than doubled to Rs 31.94 crore from Rs 14.81 crore in the year-ago period and announced a dividend of 75 per cent for 2003-04.

Besides a 155.7 per cent jump in net profit, its net sales jumped 39 per cent to Rs 820 crore in the April-June quarter of this fiscal while profit before tax stood at Rs 48.64 crore, up 123.8 per cent over the corresponding period last year. The company’s turnover for 2003-04 was Rs 3,927.3 crore and net profit Rs 193.6 crore.

Sail

The public sector Steel Authority of India Ltd (Sail) has posted a net profit of Rs 1,111.59 crore for the quarter ended June 30, 2004, as compared to Rs 254.69 crore for the quarter ended June 30, 2003, thereby recording a quantum jump of 336 per cent.

Announcing the results, the company said its total income (net of excise) has increased from Rs 4,278.67-crore in the JQ-03 to Rs 5,327.04-crore in the quarter-ended June 30, 2004.

Finolex Cables

Finolex Cables Limited (FCL) has declared its results for the first quarter ending on June 30, 2004. Net sales are up by 19.3 per cent to Rs 1332.3 million as compared to Rs 1116.5 million for the corresponding quarter of the previous year. Net profit is Rs 67.9 million as compared to Rs. 97.9 million for the corresponding period in the previous year. — TNS, Agencies
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BRIEFLY

LIC Housing
Chandigarh, July 29
The Board of Directors of LIC Housing Finance announced its unaudited results for the first quarter ended June 2004, following its approval by the Board of Directors in a meeting held in Mumbai on Wednesday. The company recorded a healthy growth in business during the first quarter ended June 2004. Under Individual Loans, the company sanctioned Rs 920 crore and disbursed Rs 887 crore. — TNS

Reliance Info
Chandigarh, July 29
Reliance Infocomm today announced the launch of India’s first MPLS Global VPN service in association with communications giant MCI, one of the providers of converged IP, data and voice communications in the world. The agreement enables Reliance Infocomm to offer its business customers seamless global MPLS-based VPN connections by leveraging MCI’s expansive global network infrastructure. — TNS

Farmers’ meet
Kulu, July 29
In order to enhance the credit flow to agricultural segment, the Kulu and Bhunter branches of the State Bank of India jointly organised a farmers-cum-customers meet here today in which more than 150 farmers, customers and non-customers of the bank participated. The meet was presided over by Mr S.N. Mahajan, Deputy General Manager, State Bank of India, Shimla Zonal Office. — TNS

Gillette India
Chandigarh, July 29
Gillette India continued its profitable growth by focusing on strategic products. The company today announced an increase of 43.88 per cent in net profits after tax for the first half ended June 30, 2004, as compared to the same period last year. The company recorded a net profit after tax of Rs 38.79 crore, in the first half, up from Rs 26.96 crore in the same period last year. The company recorded sales growth of 14 per cent on continuing businesses during the first half of 2004 over the same period last year. — TNS

Eicher Motors
New Delhi, July 29
Eicher Motors Ltd (EML) has posted a 17 per cent growth in net profit at Rs 7.13 crore for the quarter ended June, 2004, against Rs 6.08 crore in the corresponding period last year. Its gross sales grew 28 per cent to Rs 222.36 crore in the April-June quarter of the current fiscal from Rs 173.80 crore in the year-ago period. — UNI

Bajaj Auto
Chandigarh, July 29
Bajaj Auto sold over 1 lakh CT 100 motor cycles in 81 days. The occasion was celebrated in Amritsar today at Hotel Mohan International. Mr. Kulbir Singh Kang, Commissioner Municipal Corporation, Amritsar, graced the cultural evening. — TNS
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