Daily Excelsior...Business

HSBC plans to
set up a NBFC soon

CALCUTTA, May 5: The Hongkong and Shanghai Banking Corporation Limited (HSBC), the second largest foreign ....more

P R Kumarmanglam

Independent agency to be employed on coal stocks

NEW DELHI, May 5: Government has decided to engage an outside independent agency as a consultant to suggest accounting system with......more

Murosoli Maran

Govt proposes to strengthen tariff commission

NEW DELHI, May 5: The Government proposes to strengthen the tariff commission to ensure that no country dumps any product in India ....more

KRIBHCO confronts
labour unrest

SURAT, May 5: Krishak Bharati Cooperative Limited (KRIBHCO), one of India’s biggest urea-producing ....more

DCA and RBI to
make public 108
defaulting NBFCs

NEW DELHI, May 5: Department of Company Affairs (DCA) along with RBI will make public the list the names of 108 defaulting Non-Banking Finance ....more

HLL launches new
brand toothpaste

NEW DELHI, May 5: Sensing vast potential in the toothpaste market, Hindustan Lever Limited (HLL) has launched a new product......more

Gold & Silver

Gold, silver rally on
higher outside advices

NEW DELHI, May 5:Prices of yellow metal continued to rise on the bullion market today mostly influenced by reports of ..... ..more

BSEB asked to
provide 5 mw to HEC

RANCHI, May 4: A high level meeting has been convened at Patna today to sort out the crisis in the Heavy Engineering.........more

HSBC plans to set up a NBFC soon

CALCUTTA, May 5: The Hongkong and Shanghai Banking Corporation Limited (HSBC), the second largest foreign bank in India, plans to set up a Non-Banking Financial Corporation (NBFC) soon as a part of its multi-million dollar strategic programme to cater to the diversified demands of its clientele base, HSBC Chief Executive Officer in India Zarir J Cama announced here today.

Speaking to newsmen in connection with the formal launching of HSBC’s premier private banking service—private clients—for very high income group of customers in Calcutta today, Mr Cama said the bank which had been growing at the rate of more than 20 per cent per annum in terms of overall business transactions for the past few years, had undertaken a three-year long massive strategic programme to further improve its customer services through a much diversified business portfolios.

Among other plans of HSBC to broadbase its business portfolios in India in the coming months, Mr Cama said apart from introducing the global internet service and the on-line banking for the domestic customers by this year end, they proposed to set up separate windows for providing selected services in insurance sector. Moreover, a new asset management unit would also come up by this year end with an asset base of Rs 700 crores to provide home loans and car loans and other personal banking services.

Mr Cama said while Rs 300 crores had been set aside for the home loan business, Rs 250 crores for car loan and the rest for the personal banking, Mr Cama said and hoped that following the full implementation of the strategic plan the entire banking scenario in the country would undergo a massive change.

Asked about the immediate fallout of the recent high profile merger between the Standard Chartered Bank and the Anz Grindlays and whether it would affect the HSBC’s performance in anyway, Mr Cama said we are fully prepared to take up any challenge though the merger is yet to be implemented fully.

About the alleged takeover bid of the bank as appeared in a section of the press recently, the HSBC CEO categorically denied any such attempt being considered at the present moment. He said under the present banking law any foreign bank, including the HSBC, was not allowed to increase its equity stake from only 20 per cent. If only we are allowed for higher stake we would bid for 100 cent or at least 75 per cent stake, Mr Cama said and made it clear that only in that case they would vie for takeover of any private or public sector bank in India.

Earlier, speaking more about the newly launched private client services, Mr Cama said targetted to provide personalised and diversified financial services to an exclusive group of very high income group of customers having deposits worth more than Rs 7.5 million each, the new service would mainly advise the customers about its financial requirements in different sectors. After Mumbai and Delhi, Calcutta was the third centre where the service was launched, Mr Cama said adding soon Chennai and Hyderabad would follow. (UNI)

Independent agency to be employed on coal stocks

NEW DELHI, May 5: Government has decided to engage an outside independent agency as a consultant to suggest accounting system with regard to coal stocks of various collieries which have reported heavy coal stock shortages, Minister of State for Mines and Minerals Rita Verma informed the Lok Sabha today.

Replying to a question in the House, Verma said during the last three years beginning 1996-97, coal stocks to the extent of 18.00 lakh tonnes of coals in 24 collieries of BCCL and 0.14 lakh tonnes of coal in two collieries of CCL were detected.

She said four employees of Central Coal Fields Ltd and 64 employees of Bharat Coking Coal Limited were proceeded against for cases of coal shortage during these years.

Members cutting across parties lines voiced concern over rampant corruption and incidents of pilferage in coal mines involving senior officials and demanded that a parliamentary committee be set up to inquire into these irregularities.

Responding to the members’ demand, Coal and Minerals Minister P R Kumarmanglam said the Government would set up a Committee after the report of the consultant agency going to be set up to streamline the stock taking in coalmines.

To another question, the Minister said the existing rule did not stipulate any specific periodicity for carrying out revision of royalty rates for mineral extraction.

Verma said sometimes frequent revision of royalty rates could prove counter productive. The Government is trying to impart a competitive edge to coal companies and therefore it would not be in their interest to increase royalty rates at this juncture, she said. (PTI)

Govt proposes to strengthen tariff commission

NEW DELHI, May 5: The Government proposes to strengthen the tariff commission to ensure that no country dumps any product in India, Commerce and Industry Minister Murosoli Maran informed the Lok Sabha today.

Replying to supplementaries, the Minister said the Government was committed to protecting small scale as well as agriculture sector and several measures had already been initiated in that direction.

He said the revision of Quantitative Restrictions (QRs) on imports to 714 tariff lines in the revised exim policy was in tune with the policy of liberalisation, which had been pursued over the years as part of international commitments.

He said there was no surge in imports as a consequence of removal of QRs in the past and the Government had been maintaining a constant vigil on imports.

The customs duties on most of items for which QRs had been removed, had already been raised to the peak level of 35 per cent. On rice, the duty had been raised to 80 per cent, on apples to 50 per cent, on wheat to 50 per cent, and on sugar to 60 per cent.

These measures would ensure virtual no dumping of these products in the country, he added.

The Minister said the imports were closely monitored the domestic producers did not suffer.

"In the event of unfair trade practices adopted by exporters of other countries or if there is to be a sudden surge in imports affecting domestic industry, sufficient provisions are available in the form of anti-dumping measures and other safeguards to protect the domestic industry," Mr Maran said. (UNI)

KRIBHCO confronts labour unrest

SURAT, May 5: Krishak Bharati Cooperative Limited (KRIBHCO), one of India’s biggest urea-producing plants with a capacity of 4,400 tonnes a day, is confronted by labour unrest as employees owing allegiance to the Kribhco Karmachari Sangh (KKS) today went on a relay fast near the plant at Hazira area.

Sangh general secretary C.H. Patel told that the management had failed to honour a tripartite agreement signed in March regarding wages and arrears. The labour commissioner had issued a show cause notice to the management asking them why the settlement wasn’t implemented.

The Union had issued a strike notice on May one and said they may go on an indefinite strike any time after may 15 if the management did not concede to their demand. Mr Patel said that as a second step union members would resort to an indefinite fast from May ten.

He said the management is insisting the Union sign an agreement regarding KRIBHCO’s Hazira Expansion Project. If the project is not awarded to KRIBHCO, the management will be free to review and revise perks.

However, the Sangh gen secy alleged that the management had already implemented the wage revision for all its employees posted at the head office in New Delhi and officers of the plant here, whereas it was being denied to junior employees at the plant. (UNI)

DCA and RBI to make public 108 defaulting NBFCs

NEW DELHI, May 5: Department of Company Affairs (DCA) along with RBI will make public the list the names of 108 defaulting Non-Banking Finance Companies (NBFCs) and their directors.

After meeting with RBI officials yesterday the decision was taken to make the list of 108 defaulting NBFCs as part of the precautionary measures and increase public awareness about these companies, DCA secretary P L Sanjeeva Reddy said at a Conference on frauds organsied by association of Certified Fraud Examiners.

He said the move to make the names public was in view of the large number of NBFCs defaultig in repayment of fixed deposits even after the order passed by the company law board.

Asked whether DCA has taken up the issue of more powers to CLB in regard to repayment of fixed deposits of NBFCs, he said this issue was being discussed with RBI.

He said there has been large amount of siphoning off of funds by a number of NBFCs and the various regulators-RBI, DCA, SEBI and CLB- are are seriously looking at it.

DCA secretary said all the regulatory and enforcement bodies should come together in order to detect and avoid fraud.

In this connection he said in order to avoid crimes in the corporate sector, there is need to observe a code of corporate governance. (PTI)

HLL launches new brand toothpaste

NEW DELHI, May 5: Sensing vast potential in the toothpaste market, Hindustan Lever Limited (HLL) has launched a new product targetted at undertapped rural and small towns.

Around 50 per cent of the country’s population does not use toothpaste, offering a huge opportunity for the company’s new toothpaste, Aim, Mr Mukul Deoras, Marketing (Oral Care), HLL told mediapersons here.

The company is eyeing ten per cent of the market through the new product in the next five years, Mr Deoras said. The company’s other two brands, Close Up and Pepsodents, enjoy 35.4 per cent share at present.

Because of the price, sensitive nature of customers in rural and small towns, the product is priced aggressively, about 40 per cent lower than the typical toothpaste, he claimed.(UNI)

Gold, silver rally on higher outside advices

NEW DELHI, May 5:Prices of yellow metal continued to rise on the bullion market today mostly influenced by reports of firm trends in international markets and closed with sizeble gains.

Silver prices also strengthened on renewed buying by stockists.

The volume of business was good.

Traders said persistent rise in gold prices in the international markets continued to influence by local market sentiments.

In Hong Kong, gold prices rallied to 280.20-280.70 US dollars an ounce, against Thursday’s closing rate of 277.35-277.85.

Standard gold and ornaments prices shot-up by another Rs 30 each to close at Rs 4410 and Rs 4260 per ten grams respectively in line with rise in prices in international markets.

Sovereign also followed suit and ended Rs 25 higher at Rs 3850 per 8 grams.

Silver .999 ready recovered yesterday’s fall to close Rs 80 higher a Rs 7770 per kilo on revival of buying by stockists.

Silver weekly delivery also rallied in the tandem and finished Rs 75 higher at Rs 7800 per kilo.

Silver coins, however, continued to be enquired a the previous mark of Rs 10700/10900 per 100 coins.

Following were today’s quotations:

Silver .999 ready 7770 and silver weekly delivery 7800.

Silver coins buyer 10700 and seller 10900.

Standard gold 4410, ornaments 4260 and sovereign 3850. (PTI)

BSEB asked to provide 5 mw to HEC

RANCHI, May 4: A high level meeting has been convened at Patna today to sort out the crisis in the Heavy Engineering Corporation (HEC) where power supply was snapped by the Bihar State Electricity Board on Tuesday midnight following non-payment of dues to the tune of Rs 122 crore.

The State Government has ordered the BSEB to provide five mw to the HEC for running its key installations and restoration of electricity and drinking water in the township area.

According to Bihar Power Minister Rajendra Singh as the HEC had failed to restore power and drinking water supply in the township with the five mw power provided to it yesterday, the Ranchi district administration was directed to take immediate steps for ensuring that the water pump in the township was run through direct supply of power from the BSEB line.

Meanwhile, production in the giant public sector suffered adversely due to discontinuation of power during the past 48 hours. No agreement has been reached so far between the BSEB and the HEC on the issue.

Sources in the State Power Ministry held the HEC management responsible while the latter blamed the Government for the crisis. According to the HEC management they owed just Rs 18 crores to the BSEB while the latter had slapped a power arrear of Rs 120 crores.

Sources said if the crisis continued for another 48 hours the gas plant, compressor house furnace and pump house in the HEC would have to be shut down. (UNI)