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Business & Economy
FDI in banking gets
more attractive
What is India News Service, Thursday, 5
May 2005, 1700 hrs IST
Ushering in reforms in the financial sector,
the Cabinet approved
an amendment in the Banking Regulation Act allowing for voting rights to
investors in banks in proportion to their shareholding. This removes the earlier
cap of 10 percent voting rights.
A statement said the proposal formed part of
the amendments to the Banking Act to be tabled in Parliament this session.
\91\91The present provisions of the Banking
Regulation Act, 1949, have been found to be inadequate in the context of reforms
taking place in the Financial sector,\92\92 the statement said. \91\91Further
voting rights will be determined by the economic ownership.\92\92
At present, foreign investment in private banks
is capped at 74 per cent with the 10 per cent ceiling on voting rights
irrespective of investment size. The removal of this ceiling is expected to
attract much-needed foreign investment.
The Cabinet also decided to remove the floor
and the ceiling on cash reserve ratio and statutory liquidity ratio held by
commercial banks.
\91\91The Cabinet approved amendments in three
bills\97Reserve Bank of India Act of 1934, Banking Regulation Act of 1949 and
Credit Information Companies (Regulation) Bill of 2004,\92\92 Information and
Broadcasting minister Jaipal Reddy said after the meeting.
(Goa), Chakan and Navi Mumbai (Maharashtra),
Ludhiana (Punjab), Ajmer (Rajasthan), Gulbarga, Bellary and Bijapur (Karnataka)
Kannur (Kerala) and Itanagar (Arunachal Pradesh).
Three more airlines have asked the government
for permission to fly on domestic routes, the minister said.
They are Paramount Airways, Visaa Airways and
Magic Air.
The government has received proposals for grant
of initial no-objection certificate for scheduled air services from them, Mr
Patel told the Rajya Sabha.
VSNL,
C&W tie up for high-speed connectivity: They will offer services in
Indiaunder the Tata Indicom brand.
AI
to profit from 50 aircraft: Boeing:
Air-India (AI) would benefit with an annual cumulative operating
profit of $185 million if it went ahead with its proposed acquisition of 50
aircraft from US-based Boeing, the manufacturer claimed on Wednesday.
Industry
fears worsening of power crisis in Maharashtra: Industrialists are urging
action within two weeks.
"Now
it is a volumes game": The
next two-three years will see Punjab National Bank (PNB) focus on garnering
volumes, whether through expanded deposit mobilisation or diversified lending
operations to achieve an annual 15-20 per cent growth in business volume.
IBM
Products among FDI proposals: The Centre has permitted IBM Products AP
Limited of Hong Kong to set up a wholly-owned subsidiary (WOS) with an
investment of Rs. 65.50 crores in foreign exchange to undertake trading in
information technology systems and software.
Kingfisher
Airlines gets govt nod to start operations:
Private Indian carrier Kingfisher Airlines on Wednesday got the
crucial operational permit from the Civil Aviation Ministry, recognising it as a
scheduled carrier and enabling it to launch flights from Monday next.
Business papers
Business Standard
Economic Times
Business Line
Financial Express
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