RBI To issue stringent norms for NBFCs

The Reserve Bank of India (RBI) will issue stringent norms to instill more transparency in the functioning of the non-banking finance companies (NBFCs). To achieve this end the central bank will initially deploy about 300 auditors, who are approved by the Comptroller and Auditor Genral of India (CAG), according to RBI deputy governer, SP Talwar. Talwar said the accounts of NBFCs were not properly audited and some basic system needs to be adopted. He said in the post-CRB scam era the role of credit rating firms has become more important and RBI will rely more on them while regulating NBFC's in the near future.

Care rating: Care has retained the AA (SO) rating assigned to the non-convertible debenture issue of Ador Finance Ltd for Rs 31.90 lakh. The timely payment of interest and principal on the NCDs are unconditionally and irrevocably guaranteed by Advani Oerlikon Ltd, which promoted the finance company in 1994. There were no overdues in the company's lease and HP portfolio and all assets were classified as standard as on March 31, 1997.

IDBI Bank branch at Delhi: IDBI Bank has opened its tenth branch at New Delhi. The branch provides fully automated facilities for all types of retail and corporate banking products and services. The on-line automated systems will give the bank an edge in terms of speed, flexibility, quality, delivery and accuracy. IDBI Bank is the ninth bank to have have been licensed for commercial banking in the post liberalisation period.

Emco Transformers rating retained: Care has retained the AA rating assigned to the Rs 37.60 crore partly convertible debenture issue of Emco Transformers Ltd. The company manufactures electrical transformers with power rating of 10 MVA to 160 MVA up to a voltage class of 200 KV at its plant in Thane. In 1996-97, the total income of the company grew by about 58 per cent over the previous year to Rs 80.30 crore.

Bank of Baroda loans: Bank of Baroda has sanctioned about $ 525 million as FCNR (b) loans to corporates till now, while the disbursements are at around $250 million. This is out of $770 million the bank has as FCNR(b) deposits. According to bank officials the sanctions have surged during the last two months due to big corporate demand.

Chidambaram flayed: The Indian Bank Employees Federation, affiliated to Bank Employees Federation of India (Befi), today condemned the statements made by union finance minister P Chidambaram on Tuesday at a function in Madras, with regard to recapitalisation of Indian Bank. ``The minister's speech is highly misleading, besides being made up of distortions, misgivings and mudslinging on the whole lot of employees, faulting them for losses,'' the federation said in a statement here on wednesday. 1000 rupee note soon: Currency notes of one thousand rupee denomination will be issued soon in the country, union minister of state for finance Satpal Maharaj said today. Talking to newsmen here, he said the union cabinet was expected to clear a proposal in this regard shortly. He said the coin shortage in the county would be overcome as soon as the Calcutta and Mumbai mints were modernised. "We will become totally self-sufficient shortly", he added.

IT gets 40,000 new assessees:The Income Tax department has already received more than 40,000 new assessees who fall under the economic criteria (those owning telephone and car or foreign travel, etc) under a new scheme announced in the budget, according to chief commissioner of income tax (CCIT), VM Muthuramalingam. He said the new scheme had received good response,adding that that tax authorities had targeted three lakh assessees.

Orissa HC directive to NBFCs: In a significant interim order on a public interest litigation, the Orissa high court has directed the state government not to grant permission, licence, or registration to any non-banking financial institutions in the state. The direction came from a division bench of justice Sushanta Chatterji and justice CR Pal who held that there was a prima facie case in favour of the petitioner, who alleged that with the "silent" support of the state government, these "fraud" private financing institutions had looted crores of rupees from small individual investors of the state.

ED denies threats to Jain: The Enforcement Directorate (ED) Tuesday denied threatening the Bennett, Coleman and Company chairman, Ashok Jain, during interrogation in connection with an alleged Fera violation case. The ED counsel Naveen Matta with its legal advisor Shamsuddin countered that Jain's allegation that he was threatened during interrogation.

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