IDBI has signed a $150-million line of credit with the Export-Import Bank of Japan on Tuesday. The agreement was signed by IDBI chairman and managing director, SH Khan and Exim-J governor, H Yasuda. IDBI chief general manager, OV Bundellu was also present on the occasion. The line of credit will be available for financing Indo-Japanese joint ventures in India.

All project loans sanctioned by IDBI to companies, in which Japanese enterprises or individuals have an equity stake, will be eligible for financing under the line. The line could be utilised by companies in all sectors for financing import of capital goods and project related rupee expenditure.

JM Share NCD plan put on rating watch

Crisil has put the Rs 25 crore non-convertible debentures (NCD) programme of JM Share and Stock Brokers Ltd (JMSSB) on rating watch with developing implications. Crisil has an outstanding rating of A- for the issue. Crisil has noted that the JM Financial group and Morgan Stanley India have signed a memorandum of understanding to combine their investment banking, institutional equity sales and equity sales and trading businesses in India.

These developments, Crisil feels,are likely to have a bearing on the future business and debt servicing of JMSSB and will take a final view on the rating after making a detailed assessment of the impact of these developments on the company's financial position.

Aneja Fin barred from accepting deposits

The RBI has prohibited Aneja Financial Services from accepting deposits. RBI has deputed a team to conduct an inspection of the books of accounts of the company for violating the provisions of section 45N(2) of the RBI Act. A release issued on Friday stated that through press advertisement,the company offered more returns than what is permissible under the RBI directions in the form of attractive gifts. Even the text of the advertisement did not conform to the NBFC's rule, 1977.

RBI announces repo rates

The central bank has announced a three-day fixed rate repos in government of India dated securities on December 17, 1997 for parties holding SGL account and current account with it at Mumbai. The repo rate is seven per cent per annum.

The eligible banks and institutions may submit their applications indicating the volume of repos in the prescribed form obtainable at the Internal Debt Management Cell of the Reserve Bank of India. The applications may be accepted fully or partially. Payment by applicants will be on December 17, 1997 up to 2.30 pm and the repurchase by the RBI on December 20, 1997.

IDBI delivers Ashok Paper block to Nouveau

IDBI has delivered to the Nouveau Capital and Finance Ltd 66.20 lakh shares of the Ashok Paper Mills with an aggregate face value of Rs 99.31 lakh constituting 44.34 per cent of the paid up capital of the company. This is pursuant to the scheme approved by the Supreme Court for the revival of Ashok Paper Mills. The sale consideration of Rs 9.93 lakh in terms of the scheme is to be paid within 12 months from the date of transaction.

SBI awaits nod for Russian subsidiary

State Bank of India(SBI) is awaiting the Central Bank of Russia's nod to setup a subsidiaries of its banks in Russia. Russia has assured to provide all necessary assistance to facilitate opening of subsidiaries of Indian banks. PNB on revamp drive: Punjab National Bank has embarked on a massive restructuring exercise in a bid to survive in the prevailing competitive environment. PNB will focus on asset-liability and interest-rate managements.

MJP bonds get high-safety rating

Icra, has assigned LAA(SO) rating to the proposed tax free bonds issue of Maharashtra Jeevan Pradhikaran indicating high safety. MJP floated a privately placed tax free bond issue in the market in the current fiscal.

The company has structured the payment mechanism to ensure timely payment if principal and interest to the bond holders. The structured-payment mechanism will involve opening of a an account for payment of interest and principal to the bond holders.

Interest received from investment of issue proceeds will be credited to the designated account to be used only for repayment of bonds. The state government will provide an unconditional guarantee for the payment of principal and interest. The company has also made provision to appoint executors and trustees to safeguard the interet ofthe bond holders.

SBI donation to research-trust

SBI has donated Rs 10 lakhs to Bombay City Policy Research Foundation Trust. An amount of Rs 10 lakhs was released to the trust last year also. At a function held in State Bank Bhavan, chief general manager of the Mumbai circle, AK Batra handed over the sheque to chief executive officer of the trust, WJN Danait,. The trust is an initiative of the Bombay Chamber of Commerce & Industry.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.