Winners and losers

Article Abstract:

Indian financial sector reforms, begun in 1991, have brought mixed fortunes to sector members. Public-sector banks dominate the industry, but reforms have permitted the development of around 40,000 finance companies, and the blurring of distinctions between financial organizations. Some banks have made positive changes under the deregulated system, but several public-sector banks reported losses. Indian Bank concealed losses of 13 billion rupees until 1996. The state protected Indian Bank depositors, but over 200,000 savers lost their money in the collapse of finance company CRB Group.

Banking Institutions, Depository Credit Intermediation, DEPOSITORY INSTITUTIONS, NONDEPOSITORY INSTITUTIONS, Nondepository Credit Intermediation, Nonbank Credit Institutions, Banking industry, Banks (Finance), Cover Story, Financial institutions

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Two for the market

Article Abstract:

Reliance Industries and Essar Gujarat, two of India's biggest industrial conglomerates, are restructuring their companies after New Delhi relaxed its restrictions on corporate empires. Reliance Industries Ltd and Reliance Petrochemicals Ltd were merged to form petrochemical giant Reliance Industries with an asset base of Rs 66.6 billion. Essar Gujarat, which had pre-tax profits in 1991 of Rs 682 million on revenues of Rs 2.9 billion, will split into separate steel and oil companies. Both conglomerates will offer overseas financial instruments to raise money for expansion projects.

Planning, Conglomerate corporations, Reliance Industries Ltd., Essar Gujarat

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Some lose, others win

Article Abstract:

Foreign investors are showing optimism about the Indian economy. They anticipate an economic recovery in late 1997, and are confident that reforms will continue despite the uncertain political arena. The Bombay Stock Exchange Sensitive Index reached a new high in Jun 1997, and foreign funds are flowing into the country, with a total inflow of $1.02 billion for the first six months of 1997. The India market has benefited from being a closed economy, largely unaffected by overseas developments, and from poor performances in other Asian markets, particularly Thailand.

Economic Views, Economic aspects, Economic policy, Economic indicators

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