State Bank of India (SBI) has dropped its prime lending rate from 14 per cent per annum to 13.5 per cent per annum effective July 1. The maximum spread over PLR on advances other than consumer credit will continue to be 3.5 per cent on demand and term loans and at 3.75 per cent on cash credits. Some 25 public and private sector companies — top-rated clients borrowing from SBI at the PLR — will benefit from this, according to Mr. P.K. Bhattacharjee, Deputy Managing Director & Chief Financial Officer. In the last one year or so, the SBI has pruned its PLR from 16 per cent to the present 13.5 per cent, a dip of 2.5 per cent.

Cover-up by Elnet Tech directors?

Recent investigations at Elnet Technologies Ltd. indicate that directors of the company, including three representatives of ELCOT (Electronics Corporation of Tamil Nadu, one of the promoters), failed to disclose certain facts at the time of the company's public issue in July 1994, according to informed sources. Elnet Technologies is promoted in the joint sector by ELCOT and Mr. Thiagaraj. S. Chettiar to develop a software technology park at Taramani in Chennai.

Panel proposes coffee fund

The Coffee Board subcommittee on domestic prices today recommended to the Central Government that "a fund be created to buy the Beans in the open market and supply the stocks to traders and to the vulnerable sections of society. The panel was also in favour of abolition of turnover tax and reduction in sales tax by State Governments to enable conduct of regular auctions by an independent agency. It proposed that the Board be given the funds to create a buffer stock to rein in the prices.

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