November 7: The Bank of Baroda (BoB) has sanctioned loans worth Rs 800 crore for infrastructure projects during the current financial year, in line with the government's emphasis on lending to the core sectors of the economy.

K Kannan, chairman and managing director of BoB said that the bank has so far cleared Rs 800 crore of loans for infratructure projects, including telecom and power projects. Besides, the bank has also provided guarantees for Rs 1,300 crore worth of infrastructure projects, Kannan added.

Bank of India tier II capital plan: The Reserve Bank of India has cleared Bank of India's (BoI) plans to rasie Rs 500 crore under Tier II capital. The public sector bank will now have to wait for clearance from the finance ministry before it comes out with its subordinated bonds issue. BoI recently got the proposed bonds programme rated by the InvestmentInformation and Credit Rating Agency.

Finance secys meet: The Reserve Bank of India will hold a meeting of finance secretaries of state governments on November 8, 1997. Finance secretaries of all states are expected to attend the meeting. The meeting will be addressed by the RBI governor, C Rangarajan and the meeting will review the existing mechanism of market borrowing, cash management arrangements, deployment of surplus funds and placing stautory limits on state government debt.

Other issues that will come up for discussion will include the repealment of the Public Debt Act, 1944 and its replacement with the Government Securities Act, the issue of guarantees by state governments and placing a limit on guarantees and also the Consolidated Sinking Fund.

Global Trust unveils new products: The Hyderabad-based Global Trust Bank Limited (GTB) today announced introduction of two banking products from November 10 that offer customers the withdrawal convenience of a savings account as well as the high interest yield of a fixed deposit account. The Flexi Unit Deposit held in units of Rs 1,000 each has the built-in flexibility of accessing money whenever needed unlike the normal fixed deposit schemes. The Maha Savings Account meant for customers who maintain high balances in their accounts combines the high interest rate of a fixed deposit and the convenience of a savings account.

Currency turmoil hits exports: The current volatility in international currencies, especially in South East Asia, has affected India's export growth, the director general of foreign trade (DGFT), S B Mohapatra, said. Mahapatra said the Indian rupee has been ruling strong against devaluation of currencies by some countries. This volatile situation is a source of worry for Indian exports, Mohapatra told a technical session on international business round table on Uruguary Round Agreements organised by Federation of Indian Chambers of Commerce and Industry (FICCI) here.

Allahabad Bank cuts PLR: Allahabad Bank has reduced its prime lending rate (PLR) by 100 basis points from 14 per cent to 13 per cent. It has also fixed its prime term-lending rate (PTLR) at 13 per cent per annum. The revised rates are effective from November 1, 1997. The bank has declared its maximum spread above PLR at four per cent. The Calcutta-based public sector bank has also revised its interest rates for domestic term deposits.

Interest on deposits of 30-45 days will be five per cent while on deposits of 46-179 days, the rate of interest will be six per cent. Interest rates on deposits above three years will be 11 per cent.

LIC special bonus: Apart from the the usual dividend the Life Insurance Corporation has provided a one time special bonus raging between Rs 2.50 to Rs 40 to commemorate the 50th year of independence. The LIC had earned a total income of Rs 25,933 crore which includes a total premium of over Rs 16,351 crore. It had also build a reservoir of Rs 87,759 crore which is called the ``Life Fund''. The corporation settled over 16,600 claims for an amount of Rs 19.10 crore.

Bank of Baroda board meet: The Bank of Baroda will convene its board meeting on November 17 to finalise its half-yearly unaudited results. The bank has listed its equity shares with Bomaby Stock Exchange, National Stock Exchange and Vadodra Stock Exchange. It has also listed its privately placed 16 per cent, 7-year Unsecured redeemable (subordinated debt) bonds with the National Stock Exchange of India.