OIL to dilute 20% equity

The board of directors of OIL India Ltd. (OIL) has decided to dilute 20 per cent of its Rs. 70-crore equity. Last year, the company had decided to dilute 40 per cent. However, it has now been decided to slash 20 per cent and go in for another 20 per cent dilution next year. According to an official, the amount has been reduced as this is the first time that the company is diluting its equity and it wants to see the market response. OIL’s decision is in keeping with the Petroleum and Natural Gas Ministry’s stand to ask State-owned companies involved in exploration to accelerate the exploration programme.

Pillai’s anticipatory bail plea rejected

The Additional Sessions Judge, Mr. J. W. Singh, today rejected Mrs. Nina Pillai’s application for anticipatory bail for her husband, Mr. Rajan Pillai. Perfect Relations, the media advisor for Mr. Rajan Pillai, quoting sources close to the Pillai group said the High Court would be approached for anticipatory bail on Monday. However, it added that no official comment was available from the members of the Pillai family.

RBI may not soften stand on credit

While a section of bankers expects the Reserve Bank to adopt a “soft” policy in the forthcoming slack season credit policy to ease the current funds crunch in banks, others feel that this is unlikely. According to the latter, one factor causing concern to the central bank has been the unusual credit expansion by banks in the last two quarters. It has been sufficiently concerned to resort to “moral suasion” to slow this down. At a speech in Pune in February, the RBI Deputy Governor, Mr. S. S. Tarapore, had commented that the growth rate of non-food credit during the financial year had been unprecedented in the last 15 years.

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