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Mckinsey sees only SINGAPORE, Oct 8: Asia offers rich pickings for global banks in the coming decade, but they will be reaped by a handful of institutions that are able to reinvent themselves by largely abandoning corporate lending and refocusing on consumers......more Jhatka vs Halaal brews trouble for hotel industry NEW DELHI, Oct 8: The Indian hospitality industry today expressed serious concern over reports that religious groupings in Punjab have pressed hotels ......more US
growth bad for LONDON, Oct 8: The dollar, nearing record lows on the euro, is likely to fall further rather than recover as US growth picks up, as policymaker .....more India, ASEAN issue declaration on jointly combating terror BALI, Oct 8: India and the powerful ten-nation ASEAN today issued a joint declaration on cooperation for combating international terrorism and signed a major framework agreement to comprehesively enhance their current trade turnover ......more |
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Lord Paul for cooperation DHAKA, Oct 8: Highlighting environmental technology and power generation as the two major areas of trade, British business Ambassador Lord Swraj .....more Hughes
software PAT NEW DELHI, Oct 8: Hughes Software Systems (HSS) today announced Profit After Tax (PAT) of Rs 17 crore for the quarter ended September 30, 2003 as against Rs 8.3 crore during the corresponding period of last fiscal, registering 105 per cent growth. , ......more Sensex
slips to red as MUMBAI, Oct 8: Share prices reversed early gains and fell towards afternoon at the local bourses today as cautious players booked profits at....more PM
announces BALI, Oct 8: Prime Minister Atal Bihari Vajpayee today announced an ‘open skies’ arrangment with the ten-member ASEAN to allow designated airlines from the regional grouping to run daily flights to India.. .....more |
Mckinsey sees only a few banks tapping Asia riches SINGAPORE, Oct 8: Asia offers rich pickings for global banks in the coming decade, but they will be reaped by a handful of institutions that are able to reinvent themselves by largely abandoning corporate lending and refocusing on consumers. That’s the message of a new book by consultants Mckinsey and co, which paints a picture of a banking market still struggling with the legacy of Asia’s 1997/98 financial crisis but offering potentially lip-smacking returns for the bold and nimble. "The growth is there, and it will be captured by a few not by the many," said Greg Gibb, a Mckinsey principal in Taiwan and one of the authors of "banking in Asia, acquiring a profit mindset". Most of the several hundred foreign banks that have entered Asia in the last two or three decades have little to show for their efforts, Mckinsey says. It believes the vast bulk fail to make money, particularly on a risk-adjusted basis. To stand a better chance in future, these banks need to take a different approach from how they compete in mature markets like the United States and Europe. Mckinsey recommends that banks: — Build standardised, low-cost processes that can serve millions of customers through revamped distribution processes — Take advantage of Asia’s inherent market volatility by being ready to pounce on acquisition targets during downturns — Accept that traditional corporate business that makes up 70 percent of their balance sheets must shrink and that retail banking will drive profits for the next decade. South Korean banks have followed roughly the same advice and are nursing a hangover from a burst in bad consumer loans. But Mckinsey said the potential of Asia’s rapidly growing consumer markets is too great to overlook. By 2010, it estimates that unsecured consumer credit balances will have reached 5 trillion in Asia, more than twice 2001 levels, while total assets under management will reach 11 trillion. In China, close to 100 million people are expected to have a credit card by 2010, creating the third-biggest market in the world. If the penetration of mutual funds in China reaches just four percent of personal assets, there will be 189 billion under management — more than in all of Asia outside Japan in 2001. "While many big international investors may dismiss Asia as a small pond, our forecasts suggest that there are enormous opportunities to catch," the book says. These arise because of what Mckinsey identifies as six major trends driving the Asian banking industry: — The rise of a modern consumer who is more open to credit — An ageing population that must save more for its old age — A growing concentration of wealth. In China, less than one percent of urban households hold half of total deposits — A likely doubling of the "Bankable" population as another 300 million Asians pass the 1,000 annual income mark — The emergence of powerful small and medium-sized firms — Asia’s fascination with new technologies. To seize the opportunities these shifts create, local banks in particular would have to drop their fascination with universal banking and tailor their services to specific customer segments. "As the sources of profits in Asian banking are shifting, banks too must reinvent themselves. For most, embracing such wholesale change — nurturing the seeds of opportunity while managing around the troublesome weeds — will be as big a challenge as surviving the 1997 financial crisis,’’ the book says. (AGENCIES) |
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Jhatka vs Halaal brews trouble for hotel industry NEW DELHI, Oct 8: The Indian hospitality industry today expressed serious concern over reports that religious groupings in Punjab have pressed hotels and restaurants to display whether the meat they are serving is "Halaal" or "Jhatka". When contacted by UNI, the apex bodies of the Indian hospitality industry said such a religiously-sensitive demand could cause mass scale trouble while also leading to other similar demands, which would negatively affect the resurgent mood noticed in the industry of late. Meat of an animal killed as prescribed by Muslim law is "Halaal" while Hindus and Sikhs eat "Jhatka" meat. "We have called a meeting to discuss this issue as it is a very sensitive one," National Restaurant Association of India (NRAI) president Sunil Malhotra said. Expressing serious concern over the "Jhatka-Halaal" issue, demands for which initially came from Punjab, he said if such a matter was even considered by the Government, it could lead to other "difficult" demands. "Tomorrow, there might be demands where people like to know the kind of milk and oil being used by restaurants and hotels. "Also, there are many states where this issue can lead to communal tension," he said. Commenting on the issue, Federation of Hotel and Restaurant Association of India (FHRAI) secretary general Shyam Suri said if such a demand was to be met by the industry, it first required a Government legislation. "All these requirements should be enforced only after setting up legal parameters and meeting this demand on public sentiment is not possible," he said. Asked if the FHRAI would oppose such a move, he replied in the affirmative, though adding that the association would only give its comments when the government would approach it on the matter. However, both Mr Suri and Mr Malhotra said the business would be negatively affected if such a demand was met. (UNI) |
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US growth bad for current account deficit, worse for dollar? LONDON, Oct 8: The dollar, nearing record lows on the euro, is likely to fall further rather than recover as US growth picks up, as policymaker comments signal a weaker currency is the most likely route to narrowing the US current account gap. In the euro zone at least, policymakers acknowledge that a dollar fall is now "unavoidable", in the words of European central bank President Wim Duisenberg this week, and indicate that for now they are unlikely to stand in its way. The US current account, the broadest measure of a nation’s trade with the rest of the world, is on course to record a deficit of over 500 billion this year, requiring around 1.5 billion per day in foreign investment inflows to offset downward pressure on the dollar. Analysts say there are two ways to narrow the gap. The first is through a weakening currency and the second through stronger growth in countries to which the United States exports than in the US itself. The US economy, which grew 3.3 percent in the second quarter this year, is doing better than the 0.2 percent seen in the euro zone, making it likely US demand for imports will recover sooner than European demand for US exports — and that the deficit will get bigger before it gets smaller. "The current account deficit is a hurdle the dollar has to overcome to strengthen," said Ryan Shea, senior currency strategist at bank one. "As you raise the growth rate, you raise the hurdle." Why now? The current account deficit is nothing new. In the late 1990s it was not an issue for the dollar because foreign direct investment and demand for US assets stopped the gap. Now analysts say a rising US budget deficit is potentially both boosting internal demand and deterring foreign investors. "The other problem is like everyone else the US can see the growth forecasts for next year. In most cases US growth is expected to be double that of the euro zone," said Michael Metcalfe, senior currency strategist at state street. "Clearly on income effect that suggests the current account deficit is going to get wider." ECB chief Duisenberg said he hoped the dollar’s decline would be slow and gradual. Individual euro zone finance ministers then followed up on Tuesday by saying they were not worried about the euro’s current level, helping lift it above 1.18 for the first time since June. Dutch Finance Minister Gerrit Zalm said a 1.10-1.20 range was reasonable. "What Duisenberg and other European policymakers seem to be implying is that they would prefer to see the deficit adjust in the currency market than through a slowdown in US growth," said Paul Lambert, managing director currency and fixed income at Deutsche asset management. What next? Unless foreign investors expect better returns in US asset markets than elsewhere, they are unlikely to pile into dollar assets at a sufficient size to offset the deficit. In which case, many analysts expect the dollar to fall over the coming year or so, with brief periods of respite. "On a trade-weighted basis we reckon the dollar is overvalued by around 12.5 percent which for euro/dollar implies a rate north of 1.30," Shea said. A group of seven call two weeks ago for more flexible exchange rates was read by the market as referring to the US deficit and aimed at Asian nations like Japan and China. The US and Europe consider these countries are holding their currencies down artificially against the dollar to maintain export competitiveness, exacerbating the imbalance. As the current account undergoes its expected expansion, the question is whether and when Asian nations like Japan, which has spent 13.5 trillion yen in subduing its currency this year, or China, whose yuan is pegged to the dollar, will relax their grip. "If we have this continuing momentum to position against the dollar, still in the aftermath of the G7 statement, then the euro and the European currencies are seen as the path of least resistance," state street’s Metcalfe said. "They’re also for the most part current account surplus countries — the euro zone, Sweden, Norway." Without knowing whether and how Asian nations will act, analysts said choosing a strategy to short the dollar was tricky. "I would prefer to go short dollars against a basket of currencies, rather than any particular one," Lambert at Deutsche asset management said. (AGENCIES) |
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India, ASEAN issue declaration on jointly combating terror BALI, Oct 8: India and the powerful ten-nation ASEAN today issued a joint declaration on cooperation for combating international terrorism and signed a major framework agreement to comprehesively enhance their current trade turnover of 12 billion US dollars and establish a free trade area in ten years. Another accord declaring India’s accession to the Treaty of Amity and Cooperation (TAC) in south east Asia was signed by Prime Minister Atal Bihari Vajpayee and heads of State or Government of the ten ASEAN countries attending the second day-long India-ASEAN summit here. The first India-ASEAN summit was held last year in Cambodia. The joint declaration on terrorism initialed by External Affairs Minister Yashwant Sinha and ASEAN foreign ministers envisages exchange of information, cooperation in legal matters, free cooperation in enforcement matters, institutional capacity building and training to combat the the scourge. The declaration, which is on the lines that the grouping has with the US, lays down the "seriousness" of the 10 countries to deal with the menace of terrorism and related crimes like money laundering and drug trafficking, Foreign Secretary Kanwal Sibal told reporters here. The declaration comes in the backdrop of the terrorist bombings in October last year and in August this year in Bali and Jakarta in Indonesia. "Terrorism has become a major concern of several ASEAN members," Sibal said after the closed door summit in which Vajpayee participated. The Treaty of Amity and Cooperation (TAC), inked by Vajpayee, provides for basic political framework for regional cooperation and security by setting out principles for conduct of inter-state relations. "Our accession of the treaty is an additional step forward in the implementation of our `look east’ policy. It is reflective of our desire for fostering closer cooperation with ASEAN as well as our determination to cooperate in the maintenance of peace and stability in south east Asia," Sibal said. The provisions of TAC are essentially compatible with the provisions of the UN charter and the principles of Panchsheel to which India is committed. The framework agreement was negotiated by in a record time of ten month after Vajpayee announced at the first India-ASEAN sumit last year that India would extend special and differential trade treatment to ASEAN members, based on their levels of development to improve their market access to India. Declaring that the free trade arrangement with the grouping would come into being in 10 years, Sibal said India was committed to aligning its peak tariff to east Asian levels by 2005. The highlights of the framework agreement inked today lays down that negotiations on FTA in goods would begin from January next year and would be concluded by June 30, 2005. Talks on FTA in services as well as investments would start in 2005 and concluded by 2007. Areas of economic cooperation would include trade facilitation measures, sectors of cooperation and trade and investment promotion measures. The framework agreement provides for exchange of tariff concessions on the ‘Early Harvest Programme’ (EHP). Exchange of tariff concession on the products would start from November 1. There are two sets of products - 105 items in one category and 111 in the other. Concessions and differential treatment have given to Cambodia, Laos, Myanmar and Vietnam, the lesser development members of ASEAN. During interaction with the ASEAN leaders at the India-ASEAN summit, Vajpayee said the agreements showed the will and determination of both sides to expand cooperation among them. The Prime Minister also stressed the ‘early harvest programme’ included in the framework agreement to show immediate results. Sibal said India has shown flexibility to address the concerns of the Philippines as New Delhi enjoyed the balance of trade. On the joint declaration on terrorism, the Foreign Secretary said issues like root causes of terrorism and its definition were not allowed to come in the way of negotiating it unlike India’s comprehensive convention against terrorism which have got bogged down at the United Nations on these issues. (PTI) |
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Lord Paul for cooperation environmental technologies and power DHAKA, Oct 8: Highlighting environmental technology and power generation as the two major areas of trade, British business Ambassador Lord Swraj Paul today urged Bangladesh to take advantage of Britain’s expertise in these sectors. British suppliers of environmental technology and services currently command around five percent of the global market, said Lord Paul in a speech to the metropolitan chamber of commerce here referring to Bangladesh’s investment requirements in the sector. "We are especially prominent in water and wastewater treatment, which account for around 80 per cent of Britain’s environmental exports of 2.5 billion pounds," said the NRI industrialist, adding, "I would encourage you to give serious consideration to seeking out potential suppliers from Britain." "This is not just to support the strengthening of British exports to Bangladesh, but also to enable you to tap the expertise of companies that are some of the best in the world," said Lord Paul, chairman of the Caparo group. In the power generation sector, Lord Paul noted that British reputation is renowned and well-established. "We are already a leading player in the provision of power generation solution in Bangladesh... British suppliers are some of the market leaders in high quality technology, both Diesel and gas fuelled," he said. British companies are able to offer the full range of services, from equipment supply, design and consultancy, right upto managing and operating the supply on a ‘build-on-operate basis. "This is a network of expertise and knowledge, which we hope you will take full advantage of when you try to identify the best solutions for your business," Lord Paul said. Noting that bilateral trade is "going from strengh to strength," Lord Paul said Britain, with a long and proud tradition of international trade, is especially well-placed to work with Bangladesh in partnership "to further the mutual interests of both countries." He said in every major sector of the Bangladeshi economy, British investment is playing or has played a key role in development, adding, a rising number of successful British-Bangladeshi entrepreneurs are lining up to take the relationship into the next generation. He noted that organisations like the chamber provide a crucial moderating influence on the more damaging ideas of policymakers. "It is only through your continuous engagement... That business considerations will receive the due consideration of Government and the prospects for attracting more investment will improve." (PTI) |
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Hughes software PAT up 105 pc in Q2 NEW DELHI, Oct 8: Hughes Software Systems (HSS) today announced Profit After Tax (PAT) of Rs 17 crore for the quarter ended September 30, 2003 as against Rs 8.3 crore during the corresponding period of last fiscal, registering 105 per cent growth. HSS, a subsidiary of the US-based hughes, said its sales stood at Rs 85 crore during the quarter, up 63 per cent over the corresponding period of 2002-03. The total income increased from Rs 53.9 crore to Rs 86.7 crore, a 61 per cent increase year-on-year. The Earning Per Share (EPS) was Rs 5.05 in Q2. The software company added 14 new customers during this quarter. During the first half of this fiscal, hss earned PAT of Rs 32.3 crore, up 154 per cent over the last year. The total income registered 59 per cent growth at Rs 165 crore in H1 while sales stood at Rs 161.5 crore, up 62 per cent year-on-year. The EPS was Rs 9.58 during H1. HSS said during the third quarter, it expected a sales growth of 55-60 per cent and PAT growth of 60-65 per cent over the corresponding period of last year. "As opportunities within telecom begin to come back slowly, we expect a continuous acceleration in our business in the medium term," HSS president and managing director Arun Kumar said. (UNI) |
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Sensex slips to red as share prices fall on profit booking MUMBAI, Oct 8: Share prices reversed early gains and fell towards afternoon at the local bourses today as cautious players booked profits at higher levels in stock specified trades. The Bombay Stock Exchange (BSE) sensex opened 14 points higher at 4,646.63, rose to a high of 4,667.49 points and dipped to a low of 4,624.29 points in a volatile session and was at 4,630.25 points in afternoon, showing a maginal losses of 2.69 points from its Tuesday’s close of 4,632.94 points. The CNX nifty of the National Stock Exchange (NSE) was a shade up at 1,478.80 from 1,477.85 of its previous close. Market was on a roller coaster ride with index heavyweights see-sawing on an alternative bout of booking profit at higher levels and buying at lower levels, brokers said. Among the top gainers, SBI was up by 2.62 per cent at Rs 468.30, MTNL 2.57 per cent up at Rs 121.50, Hindalco 1.97 per cent up at Rs 983, BSEs 1.68 per cent up Rs 413.70, ACC 1.52 per cent up at Rs 214.40, BHEL 1.06 per cent up Rs 425 and Reliance 0.74 per cent up at Rs 455. The major losers included HDFC which fell by 4.43 per cent to Rs 525, Nestle 1.69 per cent down at Rs 583.55, ICICI bank 1.63 per ent down Rs 223.90, lT 1.21 per cent down at Rs 350.75, Zee 1.15 per cent down Rs 129.45, Hero Honda 0.91 per cent down at Rs 322.60 and Infosys 0.47 percent down at Rs 4,435.25. (UNI) |
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PM announces ‘open skies’ arrangement with ASEAN BALI, Oct 8: Prime Minister Atal Bihari Vajpayee today announced an ‘open skies’ arrangment with the ten-member ASEAN to allow designated airlines from the regional grouping to run daily flights to India. "There is a need for increased connectivity between India and ASEAN. The open skies arrangement is a unilateral move by India," Vajpayee told ASEAN leaders during the second India-ASEAN summit here. The designated airlines could fly daily to and from selected Indian metropolitan cities, Vajpayee said at the day-long closed-door meeting, according to Foreign Secretary Kanwal Sibal. Recalling his proposal for India-ASEAN vision document, 2020, which is likely to be adopted in the next ASEAN summit in Laos, the Prime Minister also referred to establishment of road and rail links between India and ASEAN members. Vajpayee also told the leaders of the powerful regional grouping there was great scope for cooperation in the pharmaceutical sector and stressed the need for spirit of accommodation on both sides. The Prime Minister also offered flights from ASEAN member nations to 18 tourist destinations in India to improve people-to people connectivity. Asserting the the joint declaration on terrorism and the framework agreements reached today went beyond the envisaged cooperation with ASEAN, Vajpayee said he was willing to provide ‘fast track’ tariff concessions uilaterally. He said these accords negated the impression created by western countries at the Cancun WTO ministerial that developing countries were unwilling to open their economies. Global trade, the Prime Miniser said, should be based on preferential trade maintaining that the ten-member ASEAN along with India, China, Japan and South Korea could form a strong economic community. He said India was willing to move at a pace comfortable for the grouping for enhancing economic ties. He also announced training programme for lesser developed members of ASEAN - Cambodia, Laos, Vietnam and Myanmar — to allow integration within the regional set up. Referring to his ‘open skies’ offer, Vajpayee said the designated airlines of the ASEAN members could start daily flights to Delhi, Mumbai, Kolkata and Chennai. He also proposed an ASEAN-India motor car rally from Guwahati through Myanmar, Thailand, Cambodia up to the Vietnamese capital of Hanoi to promote greater connectivity. The Prime Minister suggested a reciprocal arrangement to exempt diplomatic and official passport holders from visa requirements from the 10 countries. Offering to set up a joint working group on agriculture with ASEAN, Vajpayee said there was enormous scope for cooperation in the pharmaceutical sector as also in tourism. Indonesian President Megawati Sukarnoputri, Singapore Prime Minister Goh Chok Tong, Vietnamese Premier Phan Van Khai and other leaders of the grouping lauded India’s initiative in arriving at the joint declaration to combat terrorism and signing the framework agreement to usher in a free trade arrangement with the grouping in 10 years. Sibal told reporters that the steps taken by New Delhi to give a concrete shape to its relationship with ASEAN showed its interest in shaping a long-term starategic partnership with the region. (PTI) |
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DC Jammu convenes meeting of Lead Bank officers Excelsior Correspondent JAMMU, Oct 8: A standing committee meeting of Banks and Government Departments for the month of August was held in DC Office under the chairmanship of Dr Pawan Kotwal, District Development Commissioner to review the progress made in implementation of self-employment generating schemes of Government in Jammu district. The chairman Dr Kotwal expressed his satisfaction over the pace having picked up but requested the Banks not to become complacent in the matter of sanctioning of the cases. On a point raised by Dr Bali of PNB, the chairman stressed that efforts should be for equitable distribution/ representation of each area for covering the employment generation schemes to maintain geographical distribution of benefits as well as to enable every bank to participate in the schemes as banks have service area approach for financing. Dr Pawan Kotwal exhorted the participants to further increase the pace of sponsoring and sanctioning of cases as goal should be to meet the target in time. At the outset Mr V K Gupta, Chief Manager Lead Bank Office, Jammu welcomed the chairman and other participants and informed the House about various activities being undertaken by the Banks. |
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RBI fixes dollar reference rate lower at Rs 45.29 MUMBAI, Oct 8: The Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 45.29, seven paise lower than Tuesday’s fix of 45.36. (UNI) |
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Instanex DR Index, premium slip MUMBAI, Oct 8: The Instanex Skindia Depository Receipts (DR) index snapped its recent gaining streak on Tuesday and fell by 0.27 per cent to 793.85 points from 795.98 points of the previous day. According to the daily update provided by Instanex Capital Consultants Pvt Ltd, Instanex Skindia DR Index P/E also slipped by 0.53 per cent to 15.65 points from 15.73 points, while the Instanex Skindia DR Index premium dropped to 17.71 per cent from 18.62 per cent. LT (GDR), State Bank of India (GDR) and Bajaj Auto (GDR) were the top gainers, while Hindalco (GDR), Wipro (ADR) and VSNL (ADR) were the major losers. (UNI) Nikkei 5-day win streak ends on yen, machine data TOKYO, Oct 8: Japan’s Nikkei average ended down over two percent on Wednesday to snap a five-day winning streak, as worse-than-expected machinery data added gloom to a market spooked by the dollar’s tumble to a three-year low below 110 yen. The nikkei ended down 2.57 percent at 10,542.20. The broader topix index was down 1.88 percent at 1,054.75. Price falls accelerated in afternoon trade after Government data showed Japan’s core private-sector machinery orders, a key gauge of trends in capital spending, fell 4.3 percent in August from a month earlier on a seasonally adjusted basis. That was worse than a median forecast for a fall of 0.9 percent in a poll of 29 economists last week. "With sentiment already hit by the break below 110 yen, I think we saw a bigger market reaction to the month-on-month machinery figures than might normally be the case," said Kenichi Azuma, equity strategist at Cosmo securities. (AGENCIES) |
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