SBI Caps cites market turbulence, puts off Rs 100-crore debt issue
A proposed issue of non-convertible debentures (NCDs) by SBI Caps has now been deferred for 5-6 months in anticipation of better market conditions. SBI Caps was planning to use the proceeds of the NCD issue to replace its inter-corporate deposits (ICDs) portfolio. However, the recent upheavals in the market, combined with the high interest rates prevalent currently, forced the company to defer the issue.
Trans India Network set to be merged with Tata Lucent
The US-based Lucent Technologies' 50:50 joint venture with Tata Telecom, Trans India Network Systems Ltd (TINS), is being merged with another of Lucent's joint ventures -- this time with Tata Industries --, Tata Lucent Technologies Ltd. Although the details of the merger are yet to be sorted out, it is likely that Tata Industries will acquire Tata Telecom's holding in TINS.
Banks rejig rate slabs to woo deposits
The banking sector is now facing another upheaval. The hikes in the prime lending rates (PLRs) of almost all major banks, following the announcement of a tight money policy by the RBI, has now left them trying desperate measures to attract deposits. The banks are now revamping their deposit slabs to this end. ANZ Grindlays Bank has taken the initiative by keepin just two deposit slabs -- from 30-90 days and 90 days up to five years. Other banks are also expected to follow suit shortly.
`Mad fare disease' hits airlines with local operations
Deutsche Lufthansa AG has joined the bandwagon of airlines offering discounts to travellers from India to Europe and the US. The move by Lufthansa has further intensified the price war sparked off by British Airways (BA) last week when it announced a 40% cut on these routes. The BA move was immediately followed by national carrier Air India which announced a 45% discount on thses routes. Other major carriers like the KLM-Northwest combine, Emirates Airlines, etc have also offered attractive discounts on their west-bound routes, thus fuelling the war further.
Chirac moots dialogue to weed out thorny IMF-WTO disputes
French president Jacques Chirac has proposed regular talks between the G-8 countries and India to unite India and France in mutual efforts in the International Monetary Fund and the World Trade Organisation. Chirac, who was speaking at a function organised by the Indian Council for Cultural Relations in New Delhi, further stressed that the recent Asian crisis should not deter India from its path of economic reform.
Teething troubles likely to prompt Maruti to defer diesel Gypsy launch
The diesel version of Maruti Udyog Ltd's (MUL) multi-utility vehicle, the Gypsy, will not be seen on Indian roads on schedule. The launch of the diesel Gypsy, slated for the 1998-99 fiscal, has been deferred due to technical problems. MUL is reportedly having problems in mounting the TUD5 diesel engine, acquired from French auto giant Peugeot. However, the launch of the diesel Zen will go ahead as per schedule.
