SEBI trips Govt. on VSNL proposal

The Government’s plan to disinvest shares of the Videsh Sanchar Nigam to retail investors by reducing the market lot to 10 has been rejected by SEBI. Following this rejection, the Task Force set up by the Government is considering the option of dematerialisation of part of the VSNL holding to woo the retail investors. VSNL, which is planning to divest part of the government holding, had sought SEBI’s approval for issuing shares to retail investors in market lots of 10.

Corporate ECBs mount to $1.9 billion

India’s external commercial borrowings by corporates have amounted to a hefty $1.9 billions in the first four months of 1997, against $800 millions in the same period of 1996. The latest Financial Markets Survey by OECD said Indian companies raised loans amounting to $1.1 billion through dollar bonds during these four months in 1997, against $200 millions raised in the corresponding months of 1996. Banks, including financial institutions, and private corporations tapped this market on a greater scale this year, following gradual liberalisation of the norms governing the recourse to ECBs in recent months.

PNB back in black

Punjab National Bank has bounced back into the league of top profit-making batiks by registering a net profit of Rs. 238 crores for fiscal 1996-97. During 1995-96, PNB had declared its first ever loss of Rs. 95.92 crores. PNB’s operating profit for 1996-97 has shot up to Rs. 610 crores, showing a 58 per cent increase over the previous year’s figure of Rs. 384 crores. PNB Chairman-cum-Managing Director. Mr. Rashid Jilani, expressed satisfaction over the results of the bank, which were cleared by the board.