MUMBAI, July 1: The National Housing Bank has slashed refinancing rates to housing finance companies by 25 to 50 basis points. It has cut the rates by 50 basis points on loans of Rs 5-10 lakhs from 15.5 per cent to 15 per cent while interest rates on loans of Rs 50,000-2 lakh have been brought down to 14 per cent from 14.25 per cent.

Refinance rates on amounts up to Rs 50,000 will remain the same at 10 per cent. There has also been no change in the rates for Rs 2-5 lakh which will remain at 15 per cent. The new rates are effective from July 1, 1997.

Bharat Forge raises $14.9 million: Bharat Forge has raised $14.9 million, seven-year year debt at 130 basis points above the London inter-bank offered rate (Libor) to finance its expansion project. BOI Finance Ltd and Sumitomo Bank jointly arranged the facility. Bank of India branches at Singapore, Hong Kong and Osaka have commited to the tune of $ 7.9 million.

The commitment of Sumitomo Bank is to the tune of of $ 5 million while Asahi Finance, Hong Kong, has put in the rest. The company has not taken forex cover for the ECB,as any risk arising from interest rate fluctuation will be set off against its earnings from exports. The absence of forward cover saves about 7 per cent in interest.

Amex offers freebies: American Express, has launched a vigorous campaign to tap the consumers. New credit card members will now be entitled to special offers like Timex watch, Philips personal stereo and Gillette Sensor Excel shaving kit. A slogan-writing campaign has also been announced offering prizes including Ford Escort car and tirps to New York and Paris.

Central Bank's ED joins ICICI Bank: HN Sinor has joined ICICI Bank as executive director. He was formerly the executive director of the Central Bank of India. Sinor has served in various committees appointed by the Reserve Bank of India and the Indian Banks Association. He was general manager of Union Bank of India before being elevated to Central Bank as its executive director this year. RRB staff to support bank strike: Employees of the Regional Rural Banks (RRBs) all over the country will also join the strike call given by bank unions on July 4. The bank unions have been protesting against the Mahalik Committee report, which had recommended a cut in various allowances to RRB staff. The strike is demanding scrapping of the Mahalik committee report on implementation of sixth bipartite officers salary revision in RRBs, a statement by all India Gramin Bank Workers Organisation said on Tuesday. Cosmos Cooperative Bank: Cosmos Cooperative Bank Ltd, a scheduled cooperative bank, has lowered interest rates on all its adavnces by one percentage point from Tuesday. According to the director of the bank, PK Jategaonkar, the effective interest rate will now range between 16 per cent and 18.5 per cent. This would reduce the bank's margins but was necessary in a competitive market, he said. Nabard loan for Madhya Pradesh: The National Bank for Agriculture and Rural Development (Nabard) has sanctioned Rs 66.09 crore to Madhya Pradesh. An amount of Rs 34.51 crore has been earmarked for 24 road projects and 42 bridge projects and Rs 31.58 crore for irrigation. With this, Nabard aims to widen its financing in infrastructure of the state by covering incomplete rural road and bridge projects, besides minor irrigation projects. The bank had sanctioned Rs 407 crore for completion of irrigation projects.

Sena outfit opposes bank strike: The Shiv Sena-controlled Bank Karmachari Sena Mahasangh has opposed the one-day strike called by the United Forum of Bank Unions on July 4. BKSM has said that the strike will do nothing but deceive bank employees. The Sena-controlled union further stated that the United Forum of Bank Unions' opposition to the opening of local area private banks is not understandable and also contradictory compared to the unabated opening of private banks.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.