ICRA has downgraded the rating assigned to the fixed deposit programmes of Alpic Finance Company from `MA+' to `MB+'. The revised rating indicates inadequate safety. The rating agency had earlier placed the rating under rating watch with negative rating. The revised rating takes into account the profitability levels for the year ended June 30, 1998, due to reduction in lending rates, increase in interest expenses and higher provisioning onnon-performing assets. The rating also continues to takes into account the relatively low gearing of the economy.

`Rate cut to aid competition'

The reduction in the bank lending rate by one percentage point ahead of the credit policy indicates the union government's desire to impart competitiveness to Indian industry, the Associated Chambers of Commerce and Industry of India (Assocham) said. Welcoming the Reserve Bank of India announcement, Assocham president KP Singh said a sharper cut in interest rate and cash reserveratio would have given the much needed fillip to the process of economic revival.

PHDCCI hails rate cut

The PHD Chamber of Commerce and Industry (PHDCCI) on Wednesday welcomed reduction of bank rate and repo rates by the Reserve Bank. "This measure would soften the interest rate and banks should come forward to reduce prime lending rates (PLR). The reduction of cash reserve ratio (CRR) by half per cent would realise additional funds to the tune of Rs 2,500 to Rs 3,000 crore in the banking system," the said a chamber release. It said, the measure should help the banks to increase the credit offtake and lend to trade and industry.

4-day repo sale

The Reserve Bank of India (RBI) has announced a four-day fixed rate repos in Government of India dated securities on March 4, 1999 for parties holding SGL account and current account with it at Mumbai. The repo rate is fixed at 6 per cent per annum. 3-day repo sale The Reserve Bank of India received one application for an amount of Rs 23 crore atthe three-day 6.00 per cent fixed rate repos auction held on Wednesday.