Both the Industrial Development Bank of India (IDBI) and the Industrial Finance Corporation of India (IFCI) today announced an increase in their lending rates by 100 basis points following the hike in the bank rate by the Reserve Bank. While IDBI raised its minimum term lending rate (MTLR) and minimum short-term lending rate (MSTLR), IFCI hiked its prime lending rate (PLR) and the short-term PLR. IDBI has also revised the interest rates on fixed deposits. According to an IDBI press release, the MTLR is being increased to 14.5 per cent (exclusive of interest tax) from 13.5 per cent.

Govt offers help to 11 laggards in steel

As many as 11 companies which had obtained letters of intent (Lois) for commissioning steel plants have failed to stick to the stipulated time-frame. The major ones among these are Nilachal Ispat, Bellary Steels, Malavika Steel, Jindal Vijayanagar Steel, Rajinder Steel and Southern Iron and Steel Company. The Steel Ministry recently held a meeting with the heads of these companies to ascertain the reasons for the slow progress of the projects. The companies were asked to put forth their case and seek assistance from the Centre wherever necessary for expeditiously commissioning their plants.

FII net investments remain negative

The net investments by foreign institutional investors continue to be negative, with an outflow of Rs. 265.1 crores ($71.2 millions) during the period January 1 to January 16, according to figures released by SEBI. The net outflow for both debt and equity investment by FIIs was $71.2 millions. The total gross sales in equity for equity was Rs. 665.3 crores with gross purchases of Rs. 402.8 crores.

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