Indian Bank today announced a 100 basis points reduction in its prime lending rate to 13 per cent, with effect from November 3, 1997. The spread over the PLR would be four per cent for advances other than consumer credit, accoording to a bank press release. The bank floated a separate PLR for term-lending and pegged the rate at 12.75 per cent. Deposit rates have also been revised with effect from November 17. Domestic term deposits for 30 days to 179 days would be six per cent, while the one year to two year deposits would fetch 10.5 per cent. The rate on non-resident external deposits for six months to one year would be eight per cent, while that for deposits for one year to three years would be 10.5 per cent.

United Western Bank scheme

: The United Western Bank Ltd, a private sector bank, has introduced a scheme wherein housing loans can be availed for a flat or house on resale, providing the property is not more than 15 years old. The scheme, `vastupurti', came into effect from September 15. The quantum of loan which can be availed is 45 times the monthly net salary or four times the annual income of non-salary earners with a maximum limit of Rs. 25 lakhs.

Hanil Bank cuts PLR

: The Korea-based Hanil Bank, which commenced Indian operations in April 1997, has reduced its prime lending rate by 1 per cent to 14.5 per cent. The new rate will come into immediate effect, stated a press release from the bank. Hanil Bank is the leading commercial bank in Korea and was established in 1932. Its clients list in Korea include most of the Korean Chaebols, which have entered India since the last few years like Samsung, Hyundai, LG and Daewoo.

Tamilnad Mercantile Bank

: The Nadar Mahajana Bank Share Investors Forum, formed for the sole purpose of raising money to buy back the Tamilnad Mercantile Bank shares from the Essar group, is half way through in mopping up the targeted amount of Rs 100 crore. As per the talks held between the Essar group and the Nadar community in the presence of the Tamil Nadu chief minister M Karunanidhi, an agreement was reached on June 24, 1997 that the forum pay up Rs 100 crore towards the cost of the shares to the Essar group before December 31, 1997.

SBI board meet

: A meeting of the central board of the State Bank of India (SBI) will be held on November 21, 1997 in Mumbai to take on record the unaudited half-yearly working results of the bank for the six months ended September 30, 1997.

Allianz AG chief visit

: The chairman of the board of management of Allianz AG, Henning Schulte-Noelle, will visit India on November 9, 1997. During his two-day visit, Schulte-Noelle will be signing the joint venture agreement with Alpic Finance. He will also meet with various government officials and the Insurance Regulatory Authority. The German-based Allianz group is the third largest insurance company in the world.

IDBI to underwrite issues in a big way

: Industrial development bank of India (IDBI) chairman SH Khan has said the apex financial institution is willing to undertake underwriting of issues in a big way. The primary market is showing signs of recovery with the success of few good quality issues, Khan said, adding if an issue is of good quality and is priced well it will succeed in the market. "You bring me good quality issues, we will take up underwriting in a big way," Khan said. With the depressed capital markets and devolvement of many issues, underwriting of issues almost had dried up in the past few years.

Privatisation of insurance firms ruled out

: The minister of state for finance, Satpal Maharaj, today ruled out any disinvestment of the public sector insurance companies. "There is no proposal at all to privatise the public sector insurance companies," Maharaj said while addressing a seminar titled `The privatisation of Indian Insurance market', organised by the international conference on business law and general practice. ``The word privatisation essentially means turning public property into a private organisation. In the Indian context, it means disinvestment by government in the public sector unit. This is not what the government has in mind as far as insurance sector is concerned,'' the minister said.

Citibank launches credit card

: Indian Oil and Citibank formally launched the Indian Oil-Citibank co-brand credit card in Mumbai today. The card would carry all the benefits of a normal credit card including a 24-hour, 7-days-a-week customer service, emergency cash, zero lost card liability and insurance protection, according to a release.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.