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| RBI says close watch on financial sector imperative MUMBAI, July 25: The Reserve Bank of India (RBI) has said that the process of liberalisation in financial sector needs to........more Banks get
into affirmative MUMBAI, July 25: Even if the Indian corporate world has been found wanting in affirmative action, several PSU banks.......more Firm
inflation and interest MUMBAI, July 25: Government bond market is likely to stay range-bound with concerns over rising inflation and interest.....more Daimlerchrysler
aims NEW DELHI, July 25: Daimlerchrysler India is aiming to sell ten Maybachs during the current fiscal with the maiden......more |
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Inflation rises to 6.52 pc NEW DELHI, July 25: The inflation rate continued to reign above the 6 per cent mark for the third consecutive week to......more FIIs net
inflows MUMBAI, July 25: The Foreign Institutional Investors (FIIs) have recorded net inflows of Rs 376.5 crore (US dollar 82.7.......more Mufti
calls for SRINAGAR, July 25: Jammu and Kashmir Chief Minister Mufti Mohammad Sayeed has called for setting up of natural....more Mobile
phone MALDA (WB), July 25: Union Minister Priya Ranjan Dasmunshi today inaugurated mobile phone service in Chanchol sub-division of Malda district. People of Samsi, Chanchol and Harischandrapur areas of the sub-. .......more |
RBI says close watch on financial sector imperative MUMBAI, July 25: The Reserve Bank of India (RBI) has said that the process of liberalisation in financial sector needs to be carefully calibrated and sequenced in order to ensure adequate and healthy competition. Welcoming the Foreign Direct Investments (FDIs) in almost all sectors of the economy, RBI said that there is a compulsion to regulate expansion of foreign investment in the financial sector which is considered to be most vulnerable in the process of global integration. Each country picks up an appropriate package that is necessitated by the circumstances, which ensures the presence of foreign investors that fully satisfy the ‘fit and proper’ criteria, and that the presence of foreign banks is in the best national interest. "Our policy in regard to foreign banks is a part of the planned strategy for rebalancing efficiency and stability in the financial system", said RBI Governor Dr Y V Reddy. While there are special problems in the case of emerging market economies which have not reached the ‘threshold’ to be able to minimise the downside risks of the foreign banks’ presence, a more difficult question, especially in regard to foreign investors in local banks, is the identity and the nature of investors -recognising that an absolute majority of portfolio flows originate in tax havens. The problem was, however, less complex in regard to highly rated banks, Dr Reddy observed while addressing a conference at Mosouri. His observations assume important in light of the recent debate initiated by the RBI in respect of capping the promoters’ holding at 10 per cent in private sectors banks. Finally, there are pros and cons in any package of policy in regard to foreign banks. The weight to be attached to each of the pro and the con is country-specific, judgmental and evolving. Hence, a degree of transparency, a road map and considerable flexibility to the supervisors to exercise judgment on several aspects of entry and presence of foreign banks appear to be the desirable components of an appropriate policy framework in this regard. Unlike in the case of trade integration where benefits to all countries are demonstrable, the Governor said, in case of financial integration, a ‘threshold’ is important for a country to get full benefits. A judgmental view needs to be taken whether and when a country has reached the ‘threshold’ and the financial integration should be approached cautiously with a plausible road map by answering questions in a country-specific context and institutional features. In India, the policy makers have been adhering to a cautious and calibrated approach in the reforms so far and there is merit in adopting a ‘road map approach’ building on the strengths that the economy has already developed. Emphasising the need of financial stability during the process of global integration, Dr Reddy observed that the growing cross-border integration of financial markets enables massive movements of capital, which quickly arbitrage interest rate differentials across national boundaries. This is reinforced by the ever-widening impact of the information technology revolution. Real long-term interest rates in industrialised countries have been converging since the late 1980s. Financial integration has also brought with it shocks common to several countries since the ‘confidence channel’ transmits financial crises across countries swiftly. It is also useful to recognise a close link between the extent of capital account liberalisation and the presence of foreign financial enterprises in a country. The challenges to emerging market banking supervisors have come to the fore of research agenda now. The policy concerns in the recent years, with increasingly large proportion of banking assets accounted for by foreign banks, are well documented in the report of the bank for international settlements. There is a recent development which impacts the level playing field between foreign banks present in emerging market economies and the domestic banks. During the annual meetings of bis on 26th June 2004, a formal announcement was made regarding the publication of the revised framework for capital adequacy, known as Basle II, as approved by group of ten (G-10) countries. The studies on quantitative impact of Basel II seem to indicate that the foreign banks operating in emerging economies would require less regulatory capital and by virtue of their lower capital servicing costs, could finely price their products and services to the detriment of domestic banks. However, it was too early to assess the advantage in India, if any, Dr Reddy added. (UNI) |
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Banks get into affirmative
action, set up MUMBAI, July 25: Even if the Indian corporate world has been found wanting in affirmative action, several PSU banks have taken a lead in setting up training institutes for rural youth to help them gain self-employment. Union Bank of India, Canara Bank, Syndicate Bank and Vijaya Bank are amongst the front runners in this project. Union Bank of India has established two training institutes in Ernakulam (Kerala) and Varanasi (Uttar Pradesh). In an exclusive interview to UNI, Union Bank of India Chairman and Managing Director V Leeladhar said that the board of the bank has given its green signal for setting up the institutes. "This is an intiative to empower rural India and the bank will be giving adequate training to them. Union Bank of India is the lead bank for the proposed site of training institute", said Mr Leeladhar, who is also Chairman of Indian Banks Association (IBA). The cost of running an institute at Ernakulam for one year has been estimated at Rs 22-lakh. The day-to-day management of the institute will be looked after by a Director who will be an official deputed by Union Bank of India. Though initial expenditure has to be done by Union Bank of India, substantial assistance can be secured through grants from Kerala State Government, National Fund for Rural Development, SC/ST Welfare Corporation, NABARD and Khadi Village Industries Corporation/Kerala Village Industries Board. Union Bank of India’s Staff College in Bangalore has prepared a blueprint for establishing such training institutes, and the institute proposes to design, develop and deliver training programmes depending on the need and opportunities in areas of operation. Broadly the training programmes will cover aspects such as upgradation of vocational skills, self-employment orientation, entrepreneurship development, marketing skills, product development skills and training for securing micro-advance. Meanwhile, the bank has launched educational loans for students of ICFAI university, Hyderabad for pursuing higher studies under ‘union education’ scheme. Under this, all eligible, deserving and meritorious students of ICFAI pursuing higher studies under ICFAI centers through out the country are eligible for financing under union education scheme. Margin money up to Rs 4-lakh is nil and above Rs 4-lakh is 5 per cent for full-time campus course. Loan will also be given for distance education students under the scheme with a maximum up to Rs 4-lakh. The bank has also entered into an agreement with HCL Infosystems Ltd to extend loans for purchase of personal computers. Under the scheme, all sales made by HCL, one of the leading manufacturers of computers, will be financed by Union Bank of India up to 100 per cent under group-financing, if the loan amount is up to Rs 50,000. In other cases, loan amount varying from 90 per cent to 95 per cent will be financed. The scheme is applicable for both salaried and non-salaried class including non-it assesses with a gross annual income of Rs 75,000 and above. (UNI) |
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Firm inflation
and interest rate outlook to MUMBAI, July 25: Government bond market is likely to stay range-bound with concerns over rising inflation and interest rate outlook in view of the global economic rebound, discouraging players to take positions, dealers said. Despite the rollback of the turnover tax in bond markets, the buying interest is unlikely to pick until a clear direction of the inflation and interest rate emerges, dealers said. The inflation rate continued to reign above the 6 per cent mark for the third second consecutive week to reach this fiscal’s highest at 6.52 in the week-ended July 10 from 6.16 per cent in the previous week due to rise in prices of manufactured products including edible oil. The Wholesale Price Index (WPI)-based inflation was at 5.15 per cent in the year-ago period. The interbank call rate is expected to stay range-bound at 4.25-4.50 per cent during the week, with subcriptions to the RBI repos capping its fall much beyond the repo level. During the week-ended July 16, call rate grooved between 4.25-4.50 per cent most part of the week, but dipped to 3.50-4 per cent towards the close of reporting Friday, as there were no takers for the funds after players finished their reserve positions. RBI received and accepted Rs 55,130-crore in 7-day repos during the week. Government bond prices prices witnessed volatile swings before ending the week sharply lower. While the turnover tax uncertainties kept the bond market edgy on Monday and Tuesday, the market breathed easy on Wednesday after the T-tax was exempted fully for the bond market by Finance Minister. However, the unexpected announcement of the on-tap State Government loans and the jump in inflation once again pulled bond prices in the later part of the week. The bench-March 10-year yield on the 7.37 per cent, 2014, bond, which rose to a high of 5.90 per cent till the FM announced revision of the T-tax on Wednesday, briefly dipped to a low of 5.78 per cent, but once against moved up to close the week at 5.94 per cent, nearly 11 basis points higher than its previous week’s close of 5.83 per cent. RBI on Thursday announced that it will conduct on-tap sale worth Rs 8,600-crore of 6.35 per cent State Government loans of 20 State Governments, maturing in 2013 on July 28. (UNI) |
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Daimlerchrysler aims to sell 10 ‘crorepati cars’ by ‘05 NEW DELHI, July 25: Daimlerchrysler India is aiming to sell ten Maybachs during the current fiscal with the maiden delivery of the Rs five-crore luxury Sedan expected by September-end. "At present, we have three bookings for Maybach and five prospects are in sight. We hope to book a total of ten units by the end of this fiscal and deliver them by December 2005. "We are all set to deliver the first luxury high-end saloon by September-end or in the begining of October this year," Daimlerchrysler India CEO Hans-Michael Huber told reporters at the launch of the new-look Mercedes-Benz C-class here last night. The company had received about 15 serious enquiries for its ‘crorepati car Maybach’, following its display at the January autoshow in the national capital. The ‘made-to-order’ saloon takes seven months for delivery and Daimlerchrysler India, a wholly-owned subsidiary of the Germany-based Daimlerchrysler group, expects to sell between 9-11 cars annually in the country. Powered by a 5.5 litre petrol engine that can propel the car to 100 km per hour in just 5.4 seconds with a maximum speed of 250 km per hour, Maybach could be customised in over two million different ways. Rolling out the upgraded version of Merc C-class with the same price tag of Rs 23.5 lakh (ex-showroom, Delhi), Mr Huber hoped that the facelift would encourage its sales. Since its Indian launch in India 2001, the C-class has been the most popular series of the German auto giant, which has sold more than 2,000 units. (UNI) |
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NEW DELHI, July 25: The inflation rate continued to reign above the 6 per cent mark for the third consecutive week to reach this fiscal’s highest at 6.52 due to rise in prices of manufactured products including edible oils. The Wholesale Price Index (WPI)-based inflation was 6.16 per cent in the previous week and 5.15 per cent in the year-ago period. The WPI for the week rose by 0.1 per cent to 184.6 from to 184.4 in the previous week. The final WPI for all commodities for the week ended May 15 has been revised upwards to 182 from 181.1 while the rate of inflation has been corrected to 4.96 per cent as against 4.67 per cent. During the week, the index for primary articles declined by 0.1 per cent to 185.1 due to similar fall in the indices of food articles and non-food articles to 183.3 and 192.5, respectively. Among food articles, prices of beef and buffalo meat fell by 7 per cent, condiments and spices (2 per cent) and maize, fruits and vegetables (1 per cent each). However, the prices of fish (marine) (3 per cent), fish (inland) and bajra (2 per cent each) and eggs and barley (1 per cent each) moved up. In the non-food articles category, while the raw silk prices declined by 4 per cent, rape and mustard seed (2 per cent) and castor seed and gingelly seed (1 per cent each), the prices of raw rubber and copra (2 per cent each) moved up. The index for fuel, power, light and lubricants remained unchanged at its previous week’s level of 274.9. The index for manufactured products rose by 0.2 per cent to 164.3 points from 164 points for the previous week. The index of food products remained static at previous week’s level of 173.5. However, the prices of rice bran oil moved up by 2 per cent, imported edible oil, sunflower oil and salt by one per cent each, whereas the prices of ghee and solvent extracted groundnut oil witnessed a fall of 100 basis points each. The index for chemicals and chemical products group rose by 0.1 per cent to 178.9 points from 178.8 points for the previous week due to one per cent increase in the prices of acid and caustic soda. The index for basic metals alloys and metal products group too showed an upward trend by 0.4 per cent to 203.4 points from 202.6 points due to higher prices of bright bars (10 per cent) and MS/SS ingots (9 per cent). The index for textiles’ group rose by 0.5 per cent to 136.1 points due to higher prices of texturised yarn (5 per cent), cotton grey cloth (3 per cent) and polyster yarn and hessian and sacking bags (2 per cent each). Higher prices of PVC insulated cables (7 per cent) and complete engines (1 per cent) have resulted in 0.2 per cent rise in the index for machinery and machine tools that stood at 135.2 points against 134.9 points of the previous week. (UNI) |
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FIIs net inflows of Rs 376.5 crore MUMBAI, July 25: The Foreign Institutional Investors (FIIs) have recorded net inflows of Rs 376.5 crore (US dollar 82.7 million) in equities while netting sales of Rs 116.7 crore (USD 25.7 mn) in debt market for the trading week ended July 23. Mutual Funds (MFs) behaved exactly in contrast to net outflows of Rs 193.13 crore in equities and remain net buyers in debt instruments at Rs 267.76 crore during the period under review, according to the data available with Securities and Exchange Board of India (SEBI) here. FIIs were net buyers in equities on all the five trading days and registered their highest net inflow of the week at Rs 132.5 crore (USD 29.1 mn) on July 19 followed by Rs 99.6 crore (USD 21.9 mn) the next day. On the debt front, the foreign funds transacted only on three trading days to net sales of Rs 12.7 crore (USD 2.8 mn) and Rs 125 crore (USD 27.5 mn) on July 21 and 22 respectively. MFs were net sellers in equities at Rs 17.64 crore (July 19), Rs 83.48 crore (July 21) and Rs 105.91 crore (July 22). In case of debt, they netted the highest inflows of the week at Rs 178.76 crore on July 22 followed by Rs 57.46 crore on July 20. Staying in the positive territory for the fourth week in a row, the BSE benchmark 30-share index which initially showed lacklustre activity in the first half of the week, has risen past 5000-mark to 5073.34 at the end of the week under review, as against last weekend’s close of 4951.17, a net rise of 122.17 points. (PTI) |
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Mufti calls for setting up of resource-based industries SRINAGAR, July 25: Jammu and Kashmir Chief Minister Mufti Mohammad Sayeed has called for setting up of natural resource-based industries in Kashmir saying the entrepreneurs would have to focus on mineral and forest based ventures besides electronics and it till the rail network is established in the Valley. Interacting with a deputation of Federation Chamber of Industries, Kashmir (FCIK) that called on him yesterday, Sayeed said security was not the only concern for entrepreneurs from outside the State to start their units in Kashmir but the absence of railhead here was a major hurdle. With the rail chugging in the Valley in near future the situation would change for the better, he added. Sayeed asked the deputation to concentrate on industries based on forest and mineral resources beside leather, electronics and information technology. FCIK could create an atmosphere for small industry to grow in the Valley and asked for concrete suggestions to improve the status of the industries here, he said. Emphasising on the quality of the product, the Chief Minister said this was the age of competition and if the local industry had to survive it had to make itself competitive. He said the local manufacturers had to strive for producing a product better than the best available in the market as quality alone would establish an industry. Sayeed suggested starting joint ventures in leather industry with manufacturers at Chennai and Kanpur and also offered Government support for such ventures. He asked the chamber to visit these places and explore possibilities of such joint ventures. Earlier, the federation president Noor Mohammad Bhat apprised the Chief Minister of various difficulties confronting the local industry and demanded north-east package like incentives specifically for industries in the backward areas of Kashmir. The chamber also demanded vacation of industrial estates by security forces, meeting credit needs to industrial sector by financial institutions, settlement of loan cases, marketing cover to the industrial units, rehabilitation of sick units, exemption of sales tax and payment of material supplied to various Government departments. Sayeed assured sympathetic consideration of the points raised by the chamber and insisted on the continuous interaction between the Government and the industry to sort out problems. (PTI) |
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Mobile phone service inaugurated in Chanchol MALDA (WB), July 25: Union Minister Priya Ranjan Dasmunshi today inaugurated mobile phone service in Chanchol sub-division of Malda district. People of Samsi, Chanchol and Harischandrapur areas of the sub-division would be benefitted by the service, Dasmunshi, the Union Water Resource Minister, said at the inauguration programme. BSNL sources said three towers had been set up for the service in the three areas. However, Ratua area of the sub-division was left from the service as no tower had been set up there. (PTI) |
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AJMER, July 25: Main examinations of Rajasthan Administrative and Subordinate Services Examinations 2003 will be held from September 19 to October 8 at various centres in the state, a spokesman of Rajasthan Public Services Commission (RPSC) said today. Examinations will not be held on September 21 and from September 30 to October 4 to enable students to appear in other competitive examinations, he added. (PTI) |
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Uttaranchal to adopt CBSE course in all Govt schools DEHRADUN, July 25: Uttaranchal Government has decided to adopt Central Board of Secondary Educaton (CBSE) syllabus in all its schools. The decision, to be implemented from the next academic session of 2005-2006, would cover all the 20,00 schools including 14304 primary schools, 3557 junior high schools and 1500 secondary schools run by the State Goverment, Uttaranchal Education Minister Narendra Singh Bhandari said. "This is being done in accordance with the Government’s resolve to provide education in uniform pattern to our children. Secondly, the CBSE syllabus would also enable students to compete with public school children at all India level," he said. However, the examinations would be conducted by the Uttaranchal Board of Senior Secondary Education, he said Referring to his directive to monitor the functioning of public schools in Uttaranchal, Bhandari said Government has received some complaints from parents, following which he was forced to a take strict decision. He said although the State Government does not have any administrative control over the public schools, it would impose certain conditions on them at the time of issuing a No Objection Certificate(NOC) to contain their exploitation. He said a draft comprising nine conditions has already been prepared. The conditions include renewal of registered society of the school from time to time, induction of one member nominated by Education Director in the Managing Committee of Schools, 10 pc reservation for children of SC and ST and salary to the teaching and non-teaching staff at par with Government schools. (PTI) |
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Rs 3.60 for revamping ITI likely SRINAGAR, July 25: Jammu and Kashmir is likely to get Centrally-sponsored scheme worth Rs 3.60 crore for revamping Indian Training Institute (ITI) which imparts job-oriented vocational training. Announcing this at a meeting of principals and superintendents of ITIs of Kashmir region, Minister for Sports and Technical Education Haji Nisar Ali said 102 new vocational trades would be introduced in different ITIs in the state. The minister said a woman ITI would be established in Jammu, while women wings would be introduced in other five ITIs. 31 trades which have no relevance to present day job market would be removed, he said. (PTI) Bankers welcome RBI action on Global Trust Bank MUMBAI, July 25: Leading bankers today welcomed the Reserve Bank of India’s (RBI) action to put the Global Trust Bank (GTB) under moratorium and said it was a "timely action". Bank of Maharashtra Chairman S K Basu told UNI from Pune that there was nothing to be worried about as the RBI had stepped in at the right time. He said the bank was one of the hi-tech, well-networked bank, and the depositors were widely based. When asked about the interest of Bank of Maharashtra to take over this bank, he said, "it is too early". However, he would not mind to get into the asset quality and viability of the GTB merging with Bank of Maharashtra. Yesterday, at the end of business hours, the Union Government, on an application by the RBI, issued an order of moratorium on the GTBL, under which it was debarred from undertaking fresh business activity for the next 90 days. During the Moratorium period, which will end on October 23, 2004, the RBI would consider various options including amalgamation of the bank with any other bank and ensure that the public deposits were protected. Also, the bank would be permitted to make payments as per the Moratorium order and the depositors would be allowed to withdraw upto Rs 10,000 only from their saving bank account or current account or any other deposit account through any branches. (AGENCIES) |
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