Punjab National Bank (PNB) today announced a reduction in its prime lending rate (PLR) by 100 basis points to 13.5 per cent (exclusive of tax) from the present 14.5 per cent. The maximum spread on advances other than consumer credit will be four per cent over PLR, PNB said in a statement. Wth this cut in PLR, PNB has slashed its prime rate by 250 basis points over the last one year, enabling borrowers to have access to bank finance at cheaper rates, the statement added.

North Malabar Gramin Bank: The Kerala-based North Malabar Gramin Bank (NMGB), one of the two regional rural banks (RRBs) in the state, has posted a net profit of Rs 8.66 crore during the year 1996-97, an increase of 146 per cent over the previous year. NMGB, with its non-performing assets constituting four per cent of the outstanding advances and the reserves put at Rs 20 crore, is on the top slot among the RRBs in the country. The deposits of the bank have shown an increase of 23 per cent by registering Rs 152 crore during the last year.

PNB Gilts:

PNB Gilts Ltd has inducted OP Chawla, director (Retd), National Institute of Bank Management and Kamal Gupta, technical director, Institute of Chartered Accountants of India to its board. In its first year of its operations PNB Gilts has achieved a turnover of over Rs 10,000 crore in treasury bills and government securities. The company's main line of activity is dealing and market making in government securities, treasury bills and other money market instruments. It has exceeded the commitments made to Reserve Bank of India for bidding and achievement of success ratio. Against the stipulation of 40 per cent success ratio in case of treasury bills, PNB Gilts has achieved a success ratio over 62 per cent.

Hometrust Housing Finance: Hometrust Housing Finance Company Ltd, the fully-owned subsidiary of Gujarat Ambuja Cements Ltd, in its second full year of operations ended March 31, 1997 has sanctioned housing loans to the extent of Rs 18.5 crore taking the cumulative disbursement to Rs 42 crore. Gross income for the period was Rs 6.85 crore (last year Rs 3.55 crore), Profit before tax Rs 129.30 lakh (last year Rs 113.11 lakh) and profit after tax Rs 96.68 lakh against Rs 84.54 lakh last year.

Icra rating: Icra has assigned an LAAA rating to the Rs 40 crore NCD programme of Indian Rayon Industries . The rating indicates highest safety. The proceeds of the NCD programme are to be utilised for meeting normal modernisation expenditure requirements. Indian Rayon Industries has diversified interests in cement, rayon, carbon black, textiles and electric insulators. Meanwhile, Icra has placed the MAA(1) rating assigned to the fixed deposits programme of Amrut Industries under rating watch with negative implications. This was consequent to the attachment of bank accounts of the company by IT authorities.

NBFCs neglect RBI fiat: The Reserve Bank has received 3,537 applications for registration from non-banking finance companies (NBFCs) out of a total of 25,702 application forms issued. The last date for submiting registrations with the central bank is July 8. The RBI will not extend the deadline. The unregistered NBFCs will be prevented from carrying out their business.

Global Housing Finance clarifies: Global Housing Finance Corporation Ltd has clarified that it has no connection or business dealings with Global Finance Corporation Ltd or any of the companies promoted or managed by the CRB group or its relatives. Global Housing is a closely held company specialising in housing finance. The company was jointly promotedby the Bombay-based Conwood Group, Batlivala & Karani and B Arunkumar & Company.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.