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One-day seminar on urban cooperative banks held MUMBAI, Dec 10: MUMBAI, Dec 10: Members of leading Urban Cooperative Banks of Maharashtra and Goa have demanded that the dual regulatory authorities in the cooperative sector should be done away and..more Noida EOU to enter domestic market NEW DELHI, Dec 10: Latex products firm, RFB Latex Ltd is entering the domestic market with the launch of cotton-lined household gloves after remaining .....more Meter reader pays for
arbitrary disconnection NEW DELHI, Dec 10: A city consumer court has ordered Delhi Vidyut Board (DVB) to pay a compensation of Rs 6,000 to a consumer ...more Business asks CBEC to resolve excise disputes fast NEW DELHI, Dec 10: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has asked the Central Board of Excise and Customs ....more |
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Indian rupee closes stronger against US greenback MUMBAI, Dec 10: The Indian rupee closed ten paise stronger against the US greenback at Rs 46.7550/7650 on improved dollar supply and reduced ......more Inflation rate rises marginally to 7.43 pc NEW DELHI, Dec 10: The annual inflation rate rose marginally by 0.02 percentage points to 7.43 per cent in the week ended november 25, despite ......more Inter bank call rates stay MUMBAI, Dec 10: The inter bank call rates stayed in a very narrow range between 8.00-8.05 per cent due to comfortable liquidity, triggered by the IMD .....more Ordinance likely on NEW DELHI, Dec 10: The Government has decided against introducing in the current winter session the bills to amend General Insurance Business ......more |
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One-day seminar on urban cooperative banks held MUMBAI, Dec 10: Members of leading Urban Cooperative Banks of Maharashtra and Goa have demanded that the dual regulatory authorities in the cooperative sector should be done away and the Reserve Bank of India (RBI) should treat the cooperative banks at par with the commercial banks. Participating in the one-day seminar on urban cooperative banks of Maharashtra and Goa, cooperative bankers felt that the time has now come to provide greater freedom and autonomy to the cooperative institutions in the country in light of the globalisaition of Indian economy and also opening up the domestic markets. Pointing out certain impediments in the growth of the cooperative banks, they said that the recent norms related to credit exposure limit particularly in non-fund based investments had made it difficult for the banks to accommodate such accounts. An analysis of the income of urban banks revealed that most of their income was from interest earnings and there was hardly any contribution from fee-based or non-fund business. Further, the banks are already saddled with the burden of additional 20 per cent exposure to priority sector as compared to the nationalised banks, reducing their opportunities of more profitable deployment of funds. The sudden reduction in the exposure limits 25 to 20 per cent by the RBI would deprive urban banks of good clients thereby adversely affecting their viability and bottom line, they said. Expressing concern over growing Non-Performing Assets (NPAs) limit, cooperative bankers felt that there was a need to create a system of fast decision making process so that the level of NPAs could be contained. They insisted that the cooperative banks should be allowed to go for one-time-settlement in addressing the doubtful and defaulted borrower accounts. The Board of directors may evolve policy guidelines for settlement of NPAs over Rs 5 crore. They also submitted that the statute be reviewed and if necessary amended to exempt cooperative banks totally from the scheme of tax deduction at source in order to promote their growth. The bankers felt that the reserve bank should set up a regional office at Aurangabad in order to solve the branch licensing and other related problems of the growing number of urban cooperative banks in the Marathwada region, which has about 130 banks. RBI should examine the issue of difficulties faced by urban cooperative banks for cash and allot the banks to the services of the nearest currency chest branch of a bank with clear instructions to the chest bank to cater to the needs of the allotted banks. They felt that the cooperative banks should be allowed to open specialised branches like the public sector banks in order to address various segment of the society. (UNI) |
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Noida EOU to enter domestic market NEW DELHI, Dec 10: Latex products firm, RFB Latex Ltd is entering the domestic market with the launch of cotton-lined household gloves after remaining export-focussed for over ten years. The company with its manufacturing facility in the Noida Export Processing Zone (NEPZ) has been exporting its products to over 40 countries including the USA, UK, Italy, Germany and Japan. RFB Latex, as per the EOU norms, is allowed to sell specified percentage of its production in the domestic market and it intends to utilise this facility for the first time since its inception in 1989, Company Managing Director P S Ratra said here in a statement. The company claims that its newly launched cotton-lined household gloves are the first of their kind anywhere in the world.Positioned as the premier household product, RFB is expecting a sizeable volume of business from the domestic market. Driven totally by exports, RFB Latex has increased its business manifold sourcing the products from its ISO 9001 accredited facility, Mr Ratra said. The products being exported include nitrile gloves offering high flexibility and natural latex gloves. The industrial segment includes gloves for X-rays and radiology. "RFB Latex has become a preferred supplier of surgical gloves to the leading pharmaceutical and medical distributors in the world and OEM manufacturers for leading worldwide brands and companies", he said. (UNI) |
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Meter reader pays for arbitrary disconnection of power supply NEW DELHI, Dec 10: A city consumer court has ordered Delhi Vidyut Board (DVB) to pay a compensation of Rs 6,000 to a consumer whose electric supply was illegally disconnected despite payment of all the bills and directed that the amount be deducted from the salary of the erring meter reader. The Consumer Disputes Redressal Forum (North district), which held DVB guilty of deficiency in service, also asked it to restore the electric supply of complainant Naresh Kumar and not to charge him any amount from the date of disconnection (June 4, 1998) till the power supply was actually restored. The compensation amount including the cost of litigation will be recovered from the salary of K P Singh, the erring meter reader (inspector) of DVB, forum President P K Jain and members G R Gupta and Santosh Khanna said in a recent order. The Forum also recommended a departmental inquiry against Singh "for his patently illegal act in disconnecting the electricity (connection) of the complainant." Kumar, a resident of Charkhey Walan in the walled city, approached the Forum after his power supply was disconnected arbitrarily by DVB despite payment of all the bills and he was being issued bills even after the said disconnection. He had sought restoration of power supply, quashing of illegal bills and a compensation of rs 1.44 lakh for business loss and harassment and Rs 8,000 as cost of litigation. DVB had contended that disconnection was effected because Kumar did not show copies of the bills even after 2-3 visits by Singh. It further said that bills sent to Kumar after the disconnection were "bills for minimum guarantee" as a meter was existing at the site and final bills are prepared only after removal of the meter." However, the forum rejected DVB plea terming its act as "patently illegal". (PTI) |
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Business asks CBEC to resolve excise disputes fast NEW DELHI, Dec 10: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has asked the Central Board of Excise and Customs (CBEC) to evolve a fast-track mechanism for resolution of the excise-related disputes. "Whenever a showcause notice on certain points is issued, repetitive notices follow till the original case is finally adjudicated. The process of adjudication takes unduly long, resulting in huge accumulation of duty credit and considerable blockage of funds," the Chamber said in a note to CBEC. It said at a time when the Indian industry is facing competition from international players, it cannot afford to bear the unnecessary burden of funds getting blocked in the excise disputes. Disputes and litigations on central excise are on the rise due to genuine differences of opinion between the assesses and the authorities. "Such disputes need to be checked by a disciplined and judicious approach in administration of law by higher echleons of excise," ASSOCHAM said. It said the adjudication process should be free from revenue bias and revenue compulsions. "Classification and valuation disputes should be adjudicated at commissioner level with appeal to cegat thereafter. A separate legal branch can be created in CBEC and adjudicators should be under such member who should not be accountable for revenue targets", it said. (UNI) |
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Indian rupee closes stronger against US greenback MUMBAI, Dec 10: The Indian rupee closed ten paise stronger against the US greenback at Rs 46.7550/7650 on improved dollar supply and reduced demands as the fall in the international oil prices boosted the market sentiment at the Interbank Foreign Exchange (FOREX) market during the week ended December 8. According to FOREX dealers, though the overall activity remained very moderate, the supply was enough to meet the relatively lower demand, pushing up the rupee. Further rise in the foreign exchange reserve position and strengthening of the euro also improved the sentiments. However, the net selling by Foreign Institutional Investors (FIIs) worth Rs 147 crore in the capital market, slightly improved the dollar demand, they said. The rupee opened a bit higher at Rs 46.84/85, which itself of the week’s weaker rupee, gained around 11 paise in the first two days of the week with good export dollar sales and thin demand mainly due to drop in drop in the oil prices. However, the Indian unit stayed stable and range bound during the last three trading sessions. The rupee after moving in a 13-paise range between Rs 46.72 and Rs 46.85 ended the week at Rs 46.7550/7650, showing a net gain of 10 paise from Rs 46.8550/8650 of the previous week-end. Tracking the strong spot rupee, forward premiums also eased on good receiving by nationalised banks. The abundant liquidity in the call money market and easy call rates, which stayed around 8 per cent, also helped the premium to drift lower during the week. The sixth month annualised premiums, which opened at 4.06 per cent closed the week lower at 3.76 per cent. Meanwhile, the foreign exchange reserves of country further moved up by US dollar 730 million (Rs 3,359 crore) to US dollar 39,021 million (Rs 1,82,808 crore) during the week ended on December 01, 2000. According to reports, price of WTI grade crude fell sharply from 33.92 dollars a barrel on December one to 28.75 dollars on dec eight.( about 14 per cent) and if this trend continues, the oil bill for December will be (substantially) lower. However, despite strengthening against US dolar by 10 paise, the rupee fell sharply by 49 paise against euro to Rs 41.50 (41.01) and 48 paise against pound sterling to Rs 67.70 (67.22) and 12 paise against Japanese yen to Rs 42.18 (42.06) At the interbank call money market, call rates remained stable around the repo rate of 8 per cent on ample liquidity in the system, supported by IMD inflows. Call rates ruled in a narrow range between 7.90-8.10 per cent during the week and closed at 8.00-8.05 per cent. (UNI) |
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Inflation rate rises marginally to 7.43 pc NEW DELHI, Dec 10: The annual inflation rate rose marginally by 0.02 percentage points to 7.43 per cent in the week ended november 25, despite significant fall in prices of kerosene and Liquified Petroleum Gas (LPG). The point-to-point inflation rate based on Wholesale Price Index (WPI) for all commodities (base: 1993-94 = 100) stood firm above seven per cent for the third consecutive week mainly due to continuing rise in prices of manufactured items. The rate of inflation was 7.41 per cent in the previous week and only 2.80 per cent a year ago. The WPI was again down by 0.2 per cent to 157.6 from the previous week’s figure of 157.9 and 146.7 a year ago. The final WPI for September end was 156.8 as against the provisional level of 156.5. The final inflation rate for the week ended September 30, stood at 7.77 per cent as against the provisional level of 7.56 per cent. Manufactured products were costlier by 0.2 per cent, while fuel prices declined significantly by one per cent and primary items were cheaper by 0.3 per cent. Primary articles’ group index declined to 161.9 from the previous week’s mark of 162.4 due to cheaper food items. The index was only 158.8 a year ago. The index for food articles’ group fell by 0.6 per cent to 170.3 from 171.4 a week ago due to cheaper fish-marine (six per cent), fruits and vegetables (three per cent), and arhar and mutton (one per cent each). However, prices rose in the case of bajra and gram (three per cent each), eggs (two per cent), wheat, condiments and spices (one per cent each). Non-food articles’ group index was, however, up by 0.7 per cent to 144.5 from previous week’s level of 143.5 due to costlier fodder (seven per cent), raw jute (four per cent), raw cotton, raw silk and cotton seed (three per cent each), lin seed (two per cent), mesta and gingelly seed (one per cent each). But prices declined for raw wool (12 per cent), skins raw (three per cent) and groundnut seed and rape and mustard seed (one per cent each). The index for fuel, power, light and lubricants’ group fell sharply by one per cent to 217.9 from 220.9 in the last week due to a nine per cent fall in kerosene price and four per cent for LPG. The index was only 167.2 a year ago. (PTI) |
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Inter bank call rates stay in a very narrow range MUMBAI, Dec 10: The inter bank call rates stayed in a very narrow range between 8.00-8.05 per cent due to comfortable liquidity, triggered by the IMD inflows, during the week ended December 8. According to credence analysis, since funds were easily available, borrowers did not panic to cover up their position even at the beginning of the new fortnight. Call rates opened the week on a low note at 8.10 per cent, later even dipped to 7.95 per cent on ample liquidity position and relatively lower demand. However, the rates could not fall much below 8 per cent levels as there was demand from players to repay their refinance outstanding with the central bank, which kept the call rates just above the refinance rate. The liquidity in the market further improved as the last tranche of IMD proceeds came into the system during the week. Even heavy subscription to the daily repo auctions did not tighten the call rates. The total subscription to the repo auctions were around Rs 26,175 crore out of which Rs 4,850 crore was outstanding on Friday. Due to the bullish trend in the gilts market there was some demand for funds towards the end of the week but this was easily matched by ample supply. The amount outstanding in refinance as on Friday was Rs 5954 crore. Government securities crawled up slowly at the start of the week, encouraged by RBI Governor’s statement at the forex dealers conference that the Government is not likely to overshoot its budgeted borrowing programme and also there was no hurry in carrying out the remaining borrowing programme. The easy liquidity prevailed in the system, inspite of quite a huge outflow on daily repos, also gave some confidence to the market players. However, players were cautious due to fears of an auction announcement. Market sentiment got a further boost after the US federal chief pointed towards lower interest rates, which in turn help the rupee to appreciate against the green back. Buying support was very much witnessed in the long end papers that had suffered a severe beating in the last week as the rupee had weakened against the dollar. The 12.15 per cent 2008 paper placed on the RBI’s sale window in the last week was withdrawn from the omo window on December 6, 2000 after garnering around Rs 1688 crore. Towards the close of the week there was a marked improvement in the prices of long term papers by nearly 50- 100 paise. The 11.40 per cent 2008 was traded at Rs 101.58 at the beginning of the week, but towards the close the paper was being traded at Rs 102.60 while the 11.03 per cent 2012 paper gained by 90 paise by the close of the week, where it was traded at Rs 97.79. Turnover in gilts too have increased sharply to Rs 12917 crore during the week compared to Rs 5730 crore in the last week. The T-bill auctions held during the fortnight saw lower yields on the back of the overall lower yields prevailing in the market and good trading interest. The cut-off yield of 14-day T-bills auction was 6.55 per cent, 158 basis points lower than the last week’s auction, while the cut-off yield of 91-day T-bills auction was 8.89 per cent, 9 basis points lower than the last week’s auction. The cut-off yield for 182-day T-bill was also lowered by 14 basis points to 9.6 per cent. The auctions were fully subscribed. RBI has also decided to enhance the notified amount in respect of auctions of 364 day treasury bills from Rs 500 crore to Rs 750 crore for the auctions to be held during the remaining part of the current financial year. With this nearly Rs 6000 crores of the Government’s annual borrowing programme would be met through T-bills leaving a balance of 18678 crores to be garnered through dated Government papers. At the close of the week RBI announced the auction of the 11.30 per cent 2010 paper for Rs 3000 crores to be held on December 12, 2000. Bonds market witnessed hectic activity during the week, coinciding with bullish trend in the gilts market. The issuers were keen to make full use of the abundant liquidity in the markets. The issuers that came in the market included the GE Capital, Bank of India, Gujarat Ambuja Cement, Housing and Urban Development Corporation and the EXIM Bank. The GE Capital issue achieved a unique distinction by being the first private placement Commercial Paper (CP) rate linked bonds. The issuers raised Rs 50 crore, through the issue of 12 months-bonds. Bank of India came out with the bonds issue to raise the tier-II capital. The unrated Rs.150 crore issue carries a greenshoe option for Rs 50 crore, had coupon of 11.95 per cent for a tenor of 76 months. Gujarat Ambuja Cements was in the market with a Rs.50 crore issue. The AAA rated book-building issue had coupon in the 11.50-11.80 per cent range for a tenor of 5 years. Housing and Urban Development Corporation (HUDCO) issue was among the major issues hitting the market with an issue size of Rs 250 crore. The EXIM Bank was in the market with another book-building issue. The AAA rated issue is for Rs 150 crore, with the option to retain oversubscription of same amount. The coupon is in the range of 10.90-11.25 percent, for a tenor of 5 years. Punjab State Electricity Board (PSEB) issue also opened. The Rs 100 crore with a greenshoe option has coupon of 13.05 per cent, for a tenor of 7 years. ICICI launched the next series of the safety bond issue on the December five. The issue with a size of Rs 250 crore has the greenshoe option for another Rs 250 crore. The issue carries four schemes for the investors. The tax-saving, regularcome, money multiplier and the pension bonds are the four schemes at the disposal of investors. Among the existing issues, the book-building issue of Nirma closed this week. The book-building issue of Housing and Development Finance Corporation (HDFC) also closed during the week. The AAA rated paper was a huge success with the investors and closed before the due date of 7th December. The Rs.100 crore Tamil Nadu Electricity Board (TNEB) issue is still open. The issue which was to close on the 9th December, has collected around Rs.120 crore and has been extended by a few more days. (AGENCIES) |
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Ordinance likely on GIC: Officials NEW DELHI, Dec 10: The Government has decided against introducing in the current winter session the bills to amend General Insurance Business (Nationalisation), Act 1972 and the Insurance Act 1938 because of the ongoing impasse and the likelihood of the bills not being passed in the session. Instead, the Government would go in for an ordinance to amend the acts immediately after the winter session is over and both the Houses are prorogued by the President, official sources said today. The Insurance Regulatory and Development Authority (IRDA) had set October 16 as the deadline for amending these two laws to delink the General Insurance Corporation (GIC) from its four subsidiaries —New India Assurance, Oriental Insurance, National Insurance and United Insurance. Following the ordinance, the GIC would ceased to be a holding company and it would become a reinsurer. Its four subsidiaries would concentrate on General Insurance and compete with private sector companies in the field. The amendments would also do away with the dominant position of GIC and ensure a level playing field in the market for the private operators and the four separated subsidiaries. The equity capital of the GIC would be increased to Rs 200 crore and that of the four separated companies to Rs 100 crore each. With this stipulation, these five insurance companies in the public sector would mobilise more resources and with the attendant autonomy earn more for the development of the nation. The Finance Ministry had last month written to the GIC and its subsidiaries that they should be prepared for functioning independently though the legislative process may take time. It also asked them to take independent decisions on matters of personnel, investment and reinsurance of the business undertaken by them. Meanwhile, the IRDA has accorded full registration to IFFCO Tokio Marine for entering the insurance sector. With this, all the three private companies which had been given in principle approval on October 23 have been accorded full registration, IRDA member H Ansari told UNI. The other two — ICICI Prudential and Max-New York Life — had secured licences earlier. Mr Ansari said the IRDA was at present processing six applications filed with it seeking registration. These are from Tata AIG (two applications, one each for life and non-life), Birla Sunlife, Kotak-old Mutual, Reliance Life (all for life) and from Bajaj (general insurance). Some of these would be cleared this month, subject to the companies fulfulling IRDA’s requirements, he said. IRDA had ended state monopoly of the insurance sector on October 23, issuing registration to three private companies — Reliance General Insurance Company, HDFC-standard Life Insurance Company and Royal-Sundaram Insurance under Section three of the Insurance Act of 1938. Earlier this year, the Government had set up the IRDA by amending Section 13 of the LIC Act and Section 24 of the General Insurance Business (Nationalisation) Act 1972 to permit the entry of private Indian companies in the insurance sector. However, no foreign company can participate in the insurance business with 100 per cent equity and can only have collaboration with Indian companies. (UNI) |
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