FIIs net buyers in equities and debt

MUMBAI, Nov 17: The Foreign Institutional Investors (FIIs) were net buyers in equities and debt at Rs 86.4 crore (US dollar 17.7 million) and Rs 49.5 crore (USD 10.2 million) respectively for the trading week ended November 15.

Mutual Funds (MFs) transacted heavily in debt instruments to net purchases of Rs 474.83 crore during four days ending November 14 while they also remained net buyers worth Rs 67.67 crore in equities, according to the data available with the securities and exchange board of India here.

FIIs were net purchasers in equities on three trading days while registering their highest inflow of the week at Rs 67.3 crore (usd 13.9 mn) on November 15.

The foreign funds also netted purchases of Rs 26.7 crore (USD 5.5 mn) and Rs 24.9 crore (usd 5.1 mn) on November 14 and 12 respectively.

In the debt market, they indulged only in buying activity worth Rs 49.5 crore (USD 10.2 mn) on the last day of the trading week.

MFs bought and sold debt instruments to the tune of Rs 418.92 crore and Rs 87.03 crore, thus netting purchases of Rs 331.89 crore on November 11, the highest for the week, followed by Rs 146.34 crore on November 13.

They were net sellers in equities at Rs 3.90 crore and Rs 12.40 crore on November 11 and 12 respectively.

The BSE benchmark 30-share index showed narrow movements between a range of 3037.61 and 2935.97 but ended the week sharply higher at 3033.91 as against last weekend’s close of 2956.84, a net rise of 77.07 points. (PTI)

Inflation continues to rise to 3.14 pc

NEW DELHI, Nov 17: Inflation continued to rise for the third consecutive session by another 0.12 per cent to 3.14 per cent for the week ended November 2 mainly due to costlier primary items owing to steep increase in the price of non-food products.

Interestingly, nothwithstanding the final rush on the eve of Diwali, there was a sharp decline in vegetables and fruits prices though point-to-point inflation, measured by Wholesale Price Index (WPI), rose from 3.02 per cent a week ago and the index was 2.46 per cent in the previous year.

The ‘pull up’ effect of sharp price hike in fish marine, poultry chicken and soyabean was to a great extend contained by price dip in essential commodities like fruits and vegetables.

WPI rose marginally by 0.1 per cent to 167.4 from 167.3 even as prices of fuels and manufactured items stood firm and the index was 162.3 in the previous year.

The final WPI stood corrected at 167.7 for the week ended September 7 as compared to the provisional level of 167.8 and inflation was 3.71 per cent in the second week of September as against the provisional figure of 3.77 per cent.

Primary articles’ group index increased by 0.2 per cent to 174.9 from 174.5 in the previous week owing to a steep 1.6 per cent rise in the price of non-food articles even as there was price dip for food items. The index was 170.2 a year ago.

The index for food articles’ group fell by 0.2 per cent to 181.4 from 181.8 due to cheaper vegetables and fruits and bajra (two per cent each) and condiments and spices (one per cent), while there was price hike for poultry chicken (13 per cent), fish-marine (four per cent) and maize and barley (two per cent each).

Non-food articles’ group index rose to 163 from 160.4 due to higher prices for soyabean (18 per cent), copra and fodder (five per cent each), raw silk and kardi seed (three per cent each), groundnut seed, gingelly seed and niger seed (two per cent each) and raw cotton and castor seed (one per cent each).

However, prices fell for sunflower (six per cent), raw jute (two per cent) and raw rubber (one per cent).

Fuel, power, light and lubricants’ group index stood firm for the second consecutive week at 241.2 and the index was 181.1 in the previous year.

Manufactured products’ group index also remained firm at the previous week’s mark of 148.3 despite price rise in food products, chemicals and non-metallic mineral products while textiles became costlier. The index was 144.4 a year ago.

Food products’ group rose by 0.1 per cent due to costlier bran (five per cent), rice bran oil (four per cent), coconut oil and sunflower oil (three per cent each) and maida, gur and hydrogenated vanaspati (one per cent each). But prices dipped in khandsari (five per cent), sooji-rawa and solvent extracted groundnut oil (three per cent each) and atta and soyabean oil (one per cent each).

A 11 per cent hike in liquid nitrogen and one per cent in liquid chlorine upped chemicals’ group index by 0.1 per cent, while one per cent rise in cement price led to 0.5 per cent increase in non-metallic mineral products’ index.

Textiles’ group index, however, fell by 0.4 per cent to 122.5 as prices fell for cotton yarn-cones (three per cent) and hessain cloth and hessain and sacking bags (one per cent each), while there was four per cent hike in the price of tyre cord fabric and two per cent each in cotton yarn-hanks and texturised yarn. (PTI)

Banks should install alert system to prevent
NPA slippage: RBI

MUMBAI, Nov 17: The Reserve Bank of India (RBI) has underscored the need for banks to install an early alert system to prevent the slippage of their Non-Performing Accounts (NPAs) from sub-standard into the doubtful or loss category.

In a study conducted by the apex bank at the behest of the Board of Financial Supervision (BFS), the RBI notes that invariably by the time a bank starts its efforts to retrieve its NPAs, it becomes a case of too little too late - both in terms of rehabilitation of the project and recovery of the bank’s dues.

RBI has recommended that restructuring of NPAs should be attempted where, after an objective assessment of the viability and the promoter’s intention (and his stake), banks were convinced of a turnaround within a scheduled timeframe.

Emphasising the need to install an ‘early warning system’ for this purpose, it suggested that banks, for the purpose of internal monitoring, may designate a time limit for overdue accounts to determine the threshold for a proactive intervention well before the account turns into an NPA.

Such a mechanism would enable a bank to assess whether the default was due to some inherent weakness or due to a temporary liquidity or cash flow problem and accordingly calibrate its response.

All the accounts displaying unsatisfactory features or early warning signals should be put under a potential npa list for follow up and time-bound action to prevent their slippage.

The RBI said in respect of totally unviable units, as decided by the bank/consortium, it was better to facilitate winding up or selling such units early so as to recover whatever was possible through legal means before the security position worsened.

The Central Bank also advised banks to take ‘immediate’ recourse to "the securitisation and reconstruction of financial assets and enforcement of security interest ordinance 2002" in respect of totally unviable units.

The RBI has sent these recommendations to banks with an advice to place them before their board of directors for working out their strategic response in keeping with the broad thrust of these guidelines. Under the ordinance substantial powers have been granted to banks and Financial Institutions (FIs) for enforcement of securities without the intervention of courts and tribunals. Banks and FIs have also been empowered to take over the management of defaulting borrowers.

Though the main objective of the ordinance was to facilitate foreclosure of financial assets, the RBI said that ‘action under the ordinance may be initiated without any loss of time’ in respect of totally unviable units as decided by the bank or consortium.

While noting that npas were more likely to be resolved in terms of recovery if the company was in operation, it said this could be only possible if there was a system to identify the weakness in accounts at an early stage.

RBI has even recommended that though an account may be regular, it may be classified as a potential NPA in the event of factors like delay in submission of stock, financial or other control statements return of cheques issued by borrowers frequent invocation of bank guarantees and non-repayment within a reasonable period and poor financial performance in terms of declining sales and profits, cash losses, net losses, erosion of net worth.

The RBI study also favours introducing a new asset category between ‘standard’ and ‘sub-standard’ by banks for their own internal monitoring and follow-up.

This asset category may be in line with international practice of ‘special mention assets’ used by USA, Singapore etc. While keeping in view the local requirements, it said.

An asset may be transferred to this category as soon as the earliest signs of sickness or irregularities were identified. Legal action may be initiated once the banks or fis were convinced that a rehabilitation was not possible and there was no other way out, RBI said.

This would put pressure on the borrowers and reduce the chances of depletion in the value of the security, it said, adding that in this context the new securities ordinance would go a long way in developing the culture of prompt repayment of banks’ or fis’ dues.

The RBI study also said the banks may take recourse to criminal proceedings along with civil suits where misleading information had been furnished influencing the bank’s credit decision.

The paper also points that in case of any falsification of account on the part of the borrowers was detected by banks or FIs, they should lodge a complaint against the auditors of the borrowers with the Institute of Chartered Accountants of India (ICAI) if it was observed that the auditors were negligent or deficient in conducting the audit.

The RBI study asked banks to build up an inventory of skilled and trained persons to attend to risk management and risk-based supervision functions and position them in appropriate places. (UNI)

FIIs and MFs remain net buyers in equities debts

MUMBAI, Nov 17: Foreign Institutional Investors (FIIs) and Mutual Funds (MFs) remained net buyers in both equity and debt segments on Indian bourses during the week ended November 15, 2002.

According to the data available with the Securities and Exchange Board of India (SEBI), the FIIs were net buyers in equities to the tune of Rs 89.3 crore during the week as compared to their net buying of Rs 61.4 crore in the previous week.

The FIIs were also net buyers in debts at Rs 49.5 crore in the week under review.

The MFs net buying in equities during the week was at Rs 67.67 crore as compared to their net buying of Rs 16.05 crore in the previous week.

The MFs were also net buyers in the debt at Rs 474.83 crore during the week as compared to Rs 68.86 crore in the previous week.

The 30-stock Bombay Stock Exchange (BSE) sensex surpassed the 3000 mark during the week and ended at 3034 points, netting a smart gain of three per cent over the previous week.

The SP cnx nifty at the National Stock Exchange (NSE) shot up by 3.49 per cent to 990.35 points from the previous week’s close.

The FIIs and MFs have played a major role in supporting the rally in the stock market, as the FIIs have pumped in net Rs 67.3 crore in equities on Friday.

The revision in the India’s weightage in the Morgan Stanley Capital International (NSCI) index and Moody’s likely upgrade of India currency rating have mainly fuelled the rally in the stock market during the week. (UNI)

J&K Bank employees to observe strike today

Excelsior Correspondent

JAMMU, Nov 17: The J&K Bank employees have given call for one days strike tomorrow in protest against what they called the rigid attitude of the management towards the long pending demands of the employees.

As per a release, the Jammu and Kashmir Bank Employees Association has also threatened to further intensify the agitation if the management fails to redress their grievances.

Mr Mohan Singh president of the Federation has urged the employees to make the tomorrow’s strike a success. He said with the rigid attitude adopted by the management on various problems the future of the employees is at stake.

He appealed the members to exhibit unity and solidarity to protect their future by giving a befitting reply to all undemocratic threats by the management.

He further appealed to all the members not to be mislead by rumors and observe a complete strike tomorrow.

The Federation is demanding promotion of senior clerks and subordinate staff members as per mutual agreements, increase in enhanced HRA outside the state, stopping of unfair labour practices and payment of disturbed area allowances to the employees of Jammu Province.

The Association in a meeting here today strongly criticized the management for adopting undemocratic ways and anti employees policies instead of resolving the issues amicably.

MP govt incurring loss in coal sector: Uma

GWALIOR, Nov 17: Union Coal Minister Uma Bharti today alleged that, as a result of the Madhya Pradesh Government’s carelessness, there was a delay in an agreement involving the State Electricity Board and the latter was not receiving coal from two mines in Chhindwara district.

The Government was thereby incurring an annual loss of a whopping Rs 21 crore, Ms Bharti said in a discussion with mediapersons here.

"The State Government was sticking to its stand that the agreement be signed based on 1998 production prices while the centre wanted an agreement based on 2002 prices," the minister added.

At present, the Government was purchasing coal from Chandrapur in Maharashtra and that was Rs 200 per tonne costlier that even 2002 production prices.

If the agreement was signed the Madhya Pradesh Government would also obtain royalty, Ms Bharti said. (UNI)

CR alters harbour line layout at CST for better local services

MUMBAI, Nov 17: Central Railway (CR) is undertaking massive alteration of the ‘harbour line’ yard layout at the Chhatrapati Shivaji Terminus (CST) here, which would reduce travelling time, increase number of services and help in maintaining punctuality of local trains.

The completion of the work at CST alongwith other track upgradation works would reduce the time of commuting between panvel and CST by five minutes from the current 80 minutes, CR General Manager S P S Jain said at a fuction here today.

Currently harbour line services at CSR enter or leave the station at 10 km per hour because of scissor crossings connecting platform one and two, the official said.

‘These will be replaced with new turnouts (one in 12) which will increase the speed of incoming and outgoing trains at CSR to 30 km per hour’, Jain said.

The alterations were being carried out with minimum cancellation of services, he said adding similar work will be carried out at Wadala Road, Kurla, Vashi and Belapur and would be completed by the year end. (PTI)

Unreserved general railway tickets now through computer system

KANPUR, Nov 17: With a motive to check leakage and other sort of embezzlements in ticket revenue, the Railways has decided to expand, in a phased way, the ongoing pilot project of issuance of unreserved class railway tickets through a centrally computerised system.

Talking to reporters here this evening, Railway Minister Nitish Kumar expressed displeasure over the recent unearthing of a fake railway ticket racket in Kanpur and said that like reserved class railway tickets, all unreserved class tickets would also be printed and issued through a centralised computerised system.

Mr Kumar said a pilot project on these lines has been implemented at 10 railway stations in Delhi since August 15 last which has further been expanded to 13 more railway stations around the national capital.

The trial of the project was found to satisfactory and encouraged by the results, the railway had now decided to expand it through out the country.

In the next phase, the new ticket issue system was being expanded into the north-eastern region including the states of Punjab, Haryana, Delhi, Uttar Pradesh and Bihar, Mr Kumar said.

Mr Kumar said he was worried about the leakage of ticket revenue in the form of fake tickets and other forms of embezzlement. He, however, expressed hope that the new system would avert the possibility of such a leakage.

He said the ministry had already ordered a high-level inquiry into the recent fake ticket racket and added that appropriate action would be taken against those found guilty.

On certain issues related to Kanpur, the minister assured that the demand to divert the railway line, passing through a busy area of the city causing traffic jam, to Panki would be met.

Mr Kumar also assured that the railway would contribute in the expenditure on the work of widening the taat mill flyover in the city.

The minister arrived here this evening by a special train from from Delhi to participate in the annual day function of Puranchand Vidya Niketan here.

Mr Kumar also undertook window trailing inspection of the railway station on the way to Kanpur Grand Trunk Section. He also inaugurated mobile safety training car at Kanpur Central Railway Station. (UNI)

Nigerian Governor takes a ‘spin’ at Textech-2002

CHANDIGARH, Nov 17: Governor of Jigawa state, Nigeria, Ibrahim Saminu Turkai who visited Textech 2002 here to identify trade partners for his nation’s ‘free trade zone’ today said his "mission " here was to identify trade partners in the field of textiles.

"Spinning, weaving and especially finishing and garments are areas where nigeria and india can work together", stated Turaki, who, during his detailed round of the fair, identified a host of companies he would be following up.

"Textech 2002 provided a `one-stop-shop’ for me," he said, adding that such fairs are increasingly bringing Chandigarh on the global map.

Energy, software and agriculture are some other industry areas where India and Nigeria can forge partnerships, Turkai added.

The four-day Textech 2002, a Confederation of Indian Industry textile technology exposition, witnessed large capital machinery equipment companies as well as smaller textile accessory units generating business inquiries.

The exoposition, which concluded today, was visited by over 25,000 business delegates. (PTI)

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