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Credit quality key to financial stability: RBI MUMBAI, Oct 31: The Reserve Bank today underpinned the need for ensuring the quality of bank credit in the context of ..........more Repo rate hike to moderate credit growth: Chidambaram LUDHIANA, Oct 31: Finance Minister P Chidambaram today welcomed RBI’s mid-term review of credit policy, saying the hike in repo rate would .......more RBI
gives more time MUMBAI, Oct 31: While foreign banks in India and Indian banks operating abroad are to meet Basel-II norms by March 31, 2008, all other scheduled ........more MUMBAI, Oct 31: FMCG major Hindustan Lever Ltd today posted a net profit of Rs 520.74 crore for the quarter ended September 30, whereas it was Rs 325.96 crore in the corresponding quarter ....more |
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NTPC's Mouda project to get coal from Mahanadi Coalfields NAGPUR, Oct 31: Mahanadi Coalfields Ltd has agreed to supply coal to NTPC Ltd's proposed 1,000 MW plant at Mouda, near here, Union Coal Minister Shibu Soren has said.........more NEW DELHI, Oct 31: Automotive air conditioner manufacturer, Subros Ltd today reported a 93 per cent increase in net profit at Rs 7.8 crore for the quarter ended September..........more Instanex
Skindia MUMBAI, Oct 31: The Instanex Skindia DR Index edged up by 0.21 points or 0.01 per cent to 2,152.33 on October 30.......more HPCL
allots Rs 32,000 cr MUMBAI, Oct 31: State-run oil giant Hindustan Petroleum Corporation Ltd (HPCL) today said it would be spending Rs 32,000 crore on capital expenditure in...........more |
Credit quality key to financial stability: RBI MUMBAI, Oct 31: The Reserve Bank today underpinned the need for ensuring the quality of bank credit in the context of financial stability. "It is important to reiterate this concern, particularly in the context of preserving the recent gains in macro-economic performance and productivity," it said in its mid-term review of Annual Policy for 2006-07. Healthy credit portfolios would lead to reducing non- performing assets, economy in the requirements of regulatory capital and a greater freeing up of resources it said. "This will result in augmenting the ability of banks to expand lending further and banks need to recognise this cycle in the monitoring of their loan portfolios," it said. Pointing out that the demand for credit is growing at above 30 per cent for the third year in a row, the RBI said that sectors such as housing, commercial real estate and retail loans accounted for a major portion of the bank credit. It said that asset prices continue to remain at elevated levels and cautioned of "overheating". "An overheating economy is one which is growing rapidly and its productive capacity cannot keep up with resulting demand pressure," it said, adding that emergence of inflationary pressures is usually seen as the first indication of overheating. However, there is not conclusive evidence of overheating in the Indian economy at the current juncture, the RBI said. The central bank emphasised the need for monitoring all available indications that point to excess aggregate demand and said that this is "perhaps more relevant now than ever before." (PTI) |
Repo rate hike to moderate credit growth: Chidambaram LUDHIANA, Oct 31: Finance Minister P Chidambaram today welcomed RBI’s mid-term review of credit policy, saying the hike in repo rate would ensure moderate growth in bank credit and would not impact interest rates. "I endorse the decision of RBI hiking repo rate as it is primarily aimed to moderate the credit growth in the country," Chidambaram said here. The hike in repo rate by 25 basis points to 7.25 per cent would also push banks to improve credit quality, he said, but added that interest rates would remain stable. Chidambaram, who was here to attend the convocation of Punjab Agricultural University, said he would meet top banking officials on November 6 to take stock of the situation. On price rise, Chidambaram said RBI had been taking steps to curb the inflationary pressures on the economy. Elated over the Bombay Stock Exchange’s benchmark index reaching the 13,000 mark yesterday, Chidambaram said the new high attained by the Sensex was good for investors. (PTI) |
RBI gives more time to banks for meeting Basel-II norms MUMBAI, Oct 31: While foreign banks in India and Indian banks operating abroad are to meet Basel-II norms by March 31, 2008, all other scheduled commercial banks will have to adhere to these guidelines pertaining to risk provisioning by March 31, 2009, the Reserve Bank said today. In its mid-term review of Annual Policy for FY’07, RBI said that this relates to standardised approach for credit risk and the basic indicator approach for operation risk under Basel II. More time has been given to other scheduled commercial banks "taking into account the state of preparedness of the banking system," the RBI said. This will provide banks some more time to put in place appropriate systems so as to ensure full compliance of Basel II. However, the apex bank had earlier intended the date to be March 31, 2007. Basel-II norms stipulate banks to assess risks—credit, market and operations risks—and make higher provisioning for covering these risks. (PTI) |
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MUMBAI, Oct 31: FMCG major Hindustan Lever Ltd today posted a net profit of Rs 520.74 crore for the quarter ended September 30, whereas it was Rs 325.96 crore in the corresponding quarter last year. Total income increased to Rs 3,162.82 crore for the quarter, while the same stood at Rs 2816.42 crore for the year-ago period, the company informed the Bombay Stock Exchange. HLL said the results for the quarter were not comparable to those of Q3 last year due to the integration of subsidiaries—International Fisheries, Lipton India Exports, Merryweather Food Products, TOC Disinfectants, and Lever India Exports with the company. The results were also not comparable due to the demerger and subsequent disposal of Doom Dooma and TEI plantation divisions and the amalgamation of Vashisti Detergents Ltd with the company, it added. In another filing on BSE, HLL said that its shareholders, at a court convened meeting held yesterday had approved the Scheme of Arrangement entailing amalgamation of Modern Food Industries (India) Ltd, Modern Food and Nutrition Industries Ltd and the company. (PTI) |
NTPC's Mouda project to get coal
from NAGPUR, Oct 31: Mahanadi Coalfields Ltd has agreed to supply coal to NTPC Ltd's proposed 1,000 MW plant at Mouda, near here, Union Coal Minister Shibu Soren has said. The Coal Ministry has approved the coal linkage proposal by MCL, he told reporters here last night. NTPC had earlier almost scrapped the thermal power plant, about 50 km from here, for want of coal linkage. Soren said MCL would supply coal to the project since the city-based Western Coalfields Ltd "was not in a postion to supply coal". (PTI) |
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NEW DELHI, Oct 31: Automotive air conditioner manufacturer, Subros Ltd today reported a 93 per cent increase in net profit at Rs 7.8 crore for the quarter ended September 30, as compared to Rs 4.05 crore in the year-ago period, mainly due to reduced material cost. The net sales rose by 27 per cent at Rs 165.83 crore during the quarter as against Rs 130.82 crore in the corresponding period last year, the company release said. The continued focus on strengthening the indigenisation strategies to reduce material cost had resulted in higher net profit during the quarter, Subros Managing Director Ramesh Suri said. The net profit of the company for the half-year ended September, stood at Rs 13.75 crore as against Rs 8.62 crore, registering an increase of 60 per cent, it said. The sales turnover rose by 17 per cent at Rs 307.40 crore for the half-year as against Rs 263.15 crore in the same period last year. During the second quarter, Subros sold 1,25,756 AC systems compared to 89,190 last year, thereby registering a growth of 41 per cent. (PTI) |
Instanex Skindia DR Index edges up MUMBAI, Oct 31: The Instanex Skindia DR Index edged up by 0.21 points or 0.01 per cent to 2,152.33 on October 30. However, the Dr Index P/E ratio slightly edged down to 26.83, Instanex Capital release said here today. Following are the GDR and ADR rates for Oct 30 in US dollars with differences in percentage from the previous level given in brackets. Bajaj Auto (GDR) 61.00 (UNCH) Dr Reddy (ADR) 13.03 (-23.71) HDFC Bank (ADR) 68.55 (+1.26) Hindalco (GDR) 4.04 (UNCH) ICICI Bank (ADR) 35.15 (+1.27) Infosys Tech (ADR) 52.03 (+1.07) ITC (GDR) 4.08 (UNCH) L&T (GDR) 28.20 (UNCH) MTNL (ADR) 6.67 (-0.45) Ranbaxy Labs (GDR) 9.00 (-0.44) Reliance (GDR) 54.95 (+2.52) Satyam Comp (ADR) 21.62 (+0.79) SBI (GDR) 61.00 (UNCH) VSNL (ADR) 19.70 (+1.03) Wipro (ADR) 14.85 (+1.16) (PTI) |
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HPCL allots Rs 32,000 cr for
capex; MUMBAI, Oct 31: State-run oil giant Hindustan Petroleum Corporation Ltd (HPCL) today said it would be spending Rs 32,000 crore on capital expenditure in the next five years and concentrate on upgrading retail outlets. The company has tied up with fast food chain McDonald’s, Kamat Hotels and some other players to open base at HPCL’s petrol pumps, especially those on the highways. As 60 per cent of HPCL’s volumes come from highway fuel stations, the PSU major is planning to change the face of its outlets. About 400 outlets would be given a facelift. These outlets would not only be a place to fill petrol, but also a place for people to relax, said HPCL Executive Director (Retail) Suraj Choudhary at a press meet here. By converting its outlets into retail points, HPCL is changing its strategy as it sees an increase in revenue from non-fuel formats too. HPCL, through a survey, found out that the consumer needed something more than just filling in petrol at its outlets. In 2002, there were only four players in the oil retail market, but now private players had also entered, intensifying the competition further, he said. The oil behemoth has taken into consideration the needs of truck drivers and passengers travelling on the highways. "Our major business comes from highways. But in the highways there is hardly a good place for food and a clean toilet. So we have tied up with various players such as McDonald’s. We would also build toilets and maintain them," he said. Choudhary said the tie-up with the US-based fast food chain McDonald’s had been a long-drawn affair for the Government undertaking. "We have been chasing them for six years to open outlets at our retail points. But they did not show interest. But in the last three months, McDonald’s has said that everything was going at a breakneck speed," Choudhary added. HPCL is setting up an outlet in Pattarsi on the Ludhiana- Jalandhar highway, to be built on over 11 acres of land. The company expects to sell about 4,000-4,500 kilo litres of oil a month at the Pattarsi outlet, he said. The oil refiner would adopt ‘Retail Automation’, and would keep 1,000 outlets continuously under surveillance of the management by 2007, Choudhary said. Besides its retail operations, HPCL is also upgrading its Mumbai refinery, at a cost of Rs 1,850 crore, and Vizag refinery to meet Euro III norms, he informed. (PTI) |
KCFL net up by 90 pc in Apr-Sept at Rs 5.59 cr NEW DELHI, Oct 31: Khaitan Chemicals and Fertilisers Ltd (KCFL) today reported a 90 per cent increase in net profit at Rs 5.59 crore for the half year ended September 30, as compared to Rs 2.93 crore in the year-ago period. The company’s turnover and other income increased by 43 per cent to Rs 153.13 crore during the quarter as compared to Rs 107.07 crore in the corresponding period last fiscal, the company release said. The capacities put by the company in the past years have now started bearing fruit, Chairman and Managing Director Shailesh Khaitan said commenting on the results. Capital-based KCFL is the largest manufacturer in the SSP industry with a capacity of 8.47 lakh tonne per annum (TPA) of SSP and about 2.21 lakh TPA of sulphuric acid. The group has completed the acquisition in a sister concern of another solvent extraction plant of capacity 2.4 lakh TPA in Madhya Pradesh, the release said. The plant also has a refinery of 18,000 TPA apart from value-added products like lecithin, soyaflour, nuggets, vanaspathi. Consequent to the acquisition, KCFL would also have a large solvent oil plant capacity of 2,200 tonnes per day in its group, it said. (PTI) |
Banks must increase deposit base: Mohan MUMBAI, Oct 31: The central bank’s decision to raise the repo rate is a signal to commercial banks either to increase their deposit base or improve credit quality appraisal, RBI Deputy Governor Rakesh Mohan said today. "The signal is that the banks, whose demand for resources are to be met from RBI, will have to pay a higher interest," Mohan told reporters at the RBI headquarters’ here. On price rise, Mohan maintained that RBI was committed to contain inflation at the projected range of 5-5.5 per cent. He, however, said international commodity prices may have an impact on inflation. Mohan was talking to reporters after the mid-term review of the credit policy, in which the Reserve Bank of India increased the repo rate - at which it lends to commercial banks - by 25 basis points to 7.25 per cent. (PTI) Production of mobile phones from
CHENNAI, Oct 31: Production of mobile phones from Motorola’s manufacturing facility, coming up at a Special Economic Zone at Sriperumbudur near here, will begin in the first quarter of next year. This was conveyed to IT and Communications Minister Dayanidhi Maran by a team of Motorola officials led by company CEO Ed Zander. "They also showed me a custom-made phone for the Indian market. Motorola is also evincing keen interest in Wimax technology," Maran told PTI. The Sriperumbudur facility is being set up at an investment of USD 100 million and is expected to manufacture one million phones per month. Zander had inaugurated the company’s Rs 60 crore R&D centre at Hyderabad yesterday. The facility would house over 1,000 persons. To a query on Nokia India CEO Jukka Lehtehla’s observation that infrastructure was a huge problem for the company, Maran said these were teething problems faced by an economy, which would be sorted out soon. (PTI) |
Personal, real estate, consumer
goods NEW DELHI, Oct 31: Bankers today said there will be no impact on home and auto loans due to the 0.25 per cent hike in one of the key short-term rates by RBI, but lenders having liquidity problems may hike loan rates for personal, real estate, consumer goods and equity market. In the Monetary Policy Review today, RBI raised the Repo, the rate at which it lends to banks, by 0.25 per cent to 7.25 per cent while keeping reverse repo, the rate at which it borrows from banks unchanged at 6 per cent. "Banks having liquidity problem may charge a higher price for personal loans, real estate, equity market, consumer goods loans," Oriental Bank of Commerce Executive Director Allen C A Pereira told PTI. Welcoming RBI's policy stance, he said repo rate hike signals that productive sectors should get sufficient credit while non-productive sectors should pay a little more. Those banks having less liquidity will have two options before them, to mobilise resources from public through deposits or borrow from Reserve Bank. Many weaker banks borrow from RBI as it is not easy to mobilise adequate funds from public due to competition with bigger banks and the hike will increase their fund cost. Punjab National Bank Executive Director K Raghuraman said RBI's repo rate hike is a caution about credit growth, specially for banks who are aggressive toward market. "Those banks borrowing from RBI to meet liquidity demand may jack up interest rates," Raghuraman said. Both PNB and OBC said they see stable interest rate scenario and may not raise lending rates as they are comfortably placed liquidity wise. (PTI) |
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