Banks set to hike PLRs, State Bank may lead pack
The RBI yesterday announced a set of measures to revive the country's falling currency, the rupee. The measures, however, have come as a bane for commercial banks and financial institutions. The RBI move has forced the banking sector to hike its prime lending and deposit rates. The SBI has already announced a proposed 1% hike in its PLR and other banks are likely to follow suit soon.
FIPB to take up Tata airline proposal today
The Tata proposal to launch a domestic airline is coming up for its first hearing at the Foreign Investment Promotion Board meeting today. The Tata proposal envisages launch of an airline with 40% investment by foreign institutional investors (FIIs).
SBI Capital to replace deposit portfolio with CPs, debenture
SBI Capital Markets has decided to replace its deposits portfolio with commercial papers and debentures for short and long-term exposures respectively. The company will soon mop up Rs 50 crore through an issue of 3-year debentures, a move in accordance with the Sebi diktat barring non-banking finance companies from raising deposits.
Polysindo initiates steps for formal takeover of JCT's fibre
Indonesian major Polysindo has initiated steps to formalise the takeover of JCT's fibre division, in a bid to put an end to speculation. It has recently issued a formal communication on repayment of dues to the MM Thapar-controlled company's bankers, posted key executives to control day-to-day management and is believed to be in talks for a possible change in the new company's name.
Tisco to raise Rs 400 crore through private debenture placement
Tata Iron & Steel Co (Tisco), the flagship Tata company has finalised plans to make a private placement of non-convertible debentures with domestic financial institutions and banks in the next week. The proceeds of the issue, worth Rs 400 crore, will be used to part-fund the up-coming 1.2-million-tonne cold-rolling mill (CRM) at Jamshedpur.
Rupee rallies to gain 40 paise on prescription
The Reserve Bank of India's (RBI's) measures tasted success immediately as the rupee gained by 40 paise in a dramatic reaction. The prices of government securities, however, crashed across all maturities, while yields went up, signalling a hardening of interest rates. While the rupee gained to 39.80 in the kerb after closing at 40.20, prices of government securities took a beating on "panic selling" by banks.
