Union Bank chairman at Pannir Selvam is unlikely to become the Bank of India chairman and managing director. Those familiar with the matter say Selvam's appointment was cleared by the North Block, but a vigilance investigation which happened during his stint at BoI Finance as its head may sink his hopes. In which case, Canara Bank executive director RJ Kamath may take over as BoI chairman.

Cipla begins production of anti-asthma drug: Hard on the heels of its success with sildenafil citrate, the Mumbai-based Cipla has kicked off production of one of the most advanced anti-asthma drugs, fluticasone propionate (branded Flohale), in the country, making it the second company worldwide to make the product from the basic stage. Flohale, experts say, offers "greater air selectivity, rapid first-pass metabolism and an increased uptake and retention in the lungs" than its rivals.

SEBI allows FIIs to trade in derivatives: The market regulator Sebi onTuesday amended its regulations to allow FIIs to participate in open offers, invest in unlisted securities through the 100 per cent debt route, trade in derivatives and also simplified procedures for sub-account registration. Analysts say these measures will help shore up FII sentiments.

SEBI to review short sales ban on Thursday: The market regulator Sebi will review the ban on short sales at a meeting of 12 leading exchanges on June 25, Sebi chairman DR Mehta said on Tuesday. He said the meeting could take a final decision on this score.

IDBI plans to buy debt papers in international market: IDBI said on Tuesday that its first-quarter disbursement and sanctions stood at a respective Rs 2,500 crore and Rs 5,800 crore. It has proposed to buy back corporate debt papers in the international market. Chairman SH Khan ruled out the buyback of IDBI papers as the price advantage was too thin.

Mukund net dips 35% to Rs 9 crore: Mukand Ltd said on Tuesday that its net profit declined 35.46per cent to Rs 9.08 crore in 1997-98, compared with the prior year's Rs 14.07 crore. Sales were up a tad to Rs 898.56 crore, from the prior year's Rs 896 crore.

Bayer sales up 10% in first five months: Bayer India said on Tuesday that its sales jumped 10 per cent to Rs 185 crore for the first five months of 1998-99. Chairman HV Goenka said his company was eyeing a turnover of around Rs 500 crore for the full year. The firm will restructure its pharmaceuticals business in the country.

Kinetic Engineering net up a tad: The Pune-based Kinetic Engineering said on Tuesday that its net profit was up a whisker to Rs 13.74 crore in 1997-98, compared with the prior year's Rs 219.18 crore. Sales jumped to Rs 243.53 crore, from the prior year's Rs 219.18 crore. The company has declared a dividend of Rs 4 a share.

Ford to make India export base: Ford Motor Company plans to make the country an export base for its `Fiesta' model, which will be launched in mid-1999, Mahindra Ford vice-presidentJim Johnston said on Tuesday. The car, which will have an indigenisation level of 70 per cent, will be exported to neighbouring countries and a couple of `big markets' where the global car giant has established its presence. The Fiesta will be smaller and cheaper than the `Escort'.Binani group plans to invest $103.5 million in Zambia: The Binani group has finalised plans to invest $103.5 million in its Zambian copper-mining projects. The group seeks to channel revenues generated by its UK, Dubai and Zambia ventures to fund the projects. The infusion will prop the group's Zambian mines' capacity to 65,000 tonnes of finished copper from the current 45,000 tonnes within the next two years.

Bengal wants centre to take over Dunlop: The West Bengal government wanted the centre to take over immediately Dunlop India and hand over its management to the state administration. State industrial reconstruction minister Mrinal Mukherjee told the assembly that the CPM-led Left Front government would submit arevival package and urge the BIFR to remove the firm's present management.

Sensex slips 41.17 points: The bell-wether BSE 30-Share Sensitive Index remained range-bound for the better part of Tuesday, closing its innings at 3,037.34 points after slipping 41.17 points from Monday's close. The last day of the trading cycle on the NSE saw the Nifty Index close at 875.60 points, down 4.60 points from Monday's close.

Net FII outflows dip: Net portfolio holdings of foreign institutional investors fell by $205 million during June 1-22, Sebi chairman DR Mehta said on Tuesday.

IFCI net dips a whisker: IFCI said on Tuesday that its net profit dipped a tad to Rs 370.50 crore in 1997-98, compared with the prior year's Rs 378.56 crore. Disbursements stood at Rs 5,650 crore, up 10 per cent from the prior year. Chairman and managing director KD Agrawal said the net dipped owing to higher provisioning requirement.

Bank of India net NPAs rise: Bank of India said on Tuesday its net nonperforming assets ratio increased to 7.34 per cent in 1997/98, compared with the prior year's 6.5 per cent. Deposits rose to Rs 39,339 crore, compared with the prior year's Rs 31,973 crore. Advances grew to Rs 22,021 crore, from the prior year's Rs 18,337 crore.

Allahabad Bank net soars 101% to Rs 129 crore: Allahabad Bank said on Tuesday that its net profit rocketed 101 per cent to Rs 129.21 crore in 1997-98, compared with the prior year's Rs 64.30 crore. Net non-performing assets rose 15.09 per cent to Rs 859 crore from the prior year's Rs 722 crore. Deposits increased 17.3 per cent to Rs 13,541 crore, while advances jumped 15.9 per cent to Rs 5,724 crore.

Call ends up at 7.75 per cent: Call money ended marginally higher on Tuesday while bonds continued to trade sideways in low volume, dealers said. Overnight money rates ended Tuesday at 7.75 per cent against the previous close of 7.25-7.5 per cent, they said. Dealers said there was good demand for funds since it was the first week of thefortnight.

Delhi suggests talks with Pakistan at Saarc summit: A government spokesman said on Tuesday that prime minister Atal Bihari Vajpayee had sent a letter to his Pakistani counterpart suggesting bilateral talks during a summit of south Asian nations in Sri Lanka from July 29. He said that the presence of the two prime ministers at Colombo would enable them to hold bilateral discussions on all issues.