Bad news for US could be good news for Indian IT firms:Murthy...

Sugar prices up on restricted supply....

Recessionary fears to weigh in favour of interest cut: Survey

SBI asks borrowers to get rid of credit card debts...

BNP Paribas infuses Rs 570 cr in Indian operations

MUMBAI, Jan 28: BNP Paribas, a major European banking group, has infused 100 million euros or about Rs 570 crore by way of fresh equity in its Indian operations.

The fresh equity infusion was made in the last quarter of 2007 taking its capital base in India to Rs 1,600 crore, a bank release said today.

"With this enhanced capital base, we will be able to offer enhanced credit limits to our clients for borrowing in local currency which is critical in views of the curbs that the RBI has imposed on ECBs," BNP Paribas India Chief executive and Country Head Frederic Amoudru said.

"It will also enable us to become more active in local currency project financing, an area we had avoided so far on lack of sufficient local capital base," he added.

In India, BNP Paribas is an active player in corporate investment banking, offering products across all businesses and also has a strong presence in the private banking arena. It operates in eight major Indian cities.

The group has further diversified into different areas via its Asset Management as well as Housing Finance JVs with Sundaram Group, Life Insurance JV with SBI, Personal Investment Services JV with Geojit Financial Services and Fleet Management with Arval India.

Another partnership is also under completion between BNP Paribas Lease Group (Equipment Solutions) and SREI Infrastructure Finances, the release added.

The fresh infusion is in addition to the group’s investment in various joint ventures in the country over the last three years. (PTI)

Bad news for US could be good news for Indian IT firms:Murthy...

MUMBAI, Jan 28: India should look at the possible recession in the US as an opportunity as domestic IT companies are more cost effective, Infosys Chief Mentor N R Narayana Murthy said today.

"The fact that there may be a slowdown in the US means people will become much more concerned over better value for money...We could look at it as an opportunity," Murthy told reporters on the sidelines of a function here.

The Indian IT industry fears that a possible slowdown in the US economy could lead their companies to cut IT spending.

As Indian IT companies are earning major revenue from the US, recession is being looked at as having a negative effect on the topline.

Murthy said that instead of an adverse effect, it was more likely that India benefits if the US economy, the world’s biggest, witnesses a slowdown.

"The focus on better allocation of money means a greater opportunity for India," he said adding Indian IT companies were reasonably well placed to withstand the shocks if any.

Earlier, Murthy inaugurated public sector Bank of Baroda’s financial supermarket, N M Chowkshi Business Centre, and its 1,575^{th core banking branch in Aizwal, Mizoram.}

^{Bank of Baroda Chairman and Managing Director A K Khandelwal said the lender has 88 per cent of its business on the core banking platform. (PTI)}

Sugar prices up on restricted supply....

NEW DELHI, Jan 28: Sugar prices hardened by Rs 10-25 a quintal in the wholesale sugar market here today on restricted supply and emergence of buying by stockists.

Marketmen said increased offtake by stockists and local parties amid higher advices by millers pushed up sugar prices.

Sugar ready medium and second grade moved up from Rs 1,525-1,625 and Rs 1,515-1,610 to close at Rs 1,550-1,625 and Rs 1,525-1,610 a quintal respectively.

Mill delivery medium and second grade prices also registered fresh gains to finish at Rs 1,330-1,510 and Rs 1,320-1,500 from Rs 1,320-1,500 and Rs 1,310-1,490 a quintal respectively.

In Mill gate section, sugar Modinagar rose by Rs 15 at Rs 1,475 quintal while Baghpat quoted higher at Rs 1,415 a quintal.

Daurala traded at Rs 1,445 a quintal and Simbhawali went up to close at Rs 1,440 a quitnal.

Following were today's quotations per quintal (in Rs):

Sugar ready M-30 1550-1625 and S-30 1525-1610.

Mill delivery M-30 1330-1510 and S-30 1320-1500.

Sugar mill gate prices (excluding duty): Modinagar 1475, Bagpat 1415, Daurala 1445, Chandpur 1380, Titabi 1480, Mawana 1480, Simbhawali 1440, Khatauli 1465, Badaiun 1350, Sattha 1355, Ruderavilash 1360, Bijnor 1420 and Amroha 1415 and Samali Rs 1430. (PTI)

Recessionary fears to weigh in favour of interest cut: Survey

NEW DELHI, Jan 28: Recessionary fears in the global economy, slowdown in domestic industrial production in November 2007 and the widening gap between the US and Indian interest rates have set the stage for a policy rate cut by the RBI tomorrow, an ASSOCHAM CEO survey has said.

Majority of the 285 CEOs surveyed by the ASSOCHAM Business Barometer (ABB) felt that the Indian economy caught between early but tentative signs of sluggish domestic growth and weakening global demand would require policy support to retain the growth achieved consistently for the past three years.

As many as 84 per cent of the respondents of ABB done prior to the RBI policy review hoped for a cut in the repo rate by the Reserve Bank in view of the 75 basis points reduction in the Federal Reserve Rate.

The corporate heads felt that the interest rates have reached their peak and are in fact hurting the industrial growth.

Around 90 per cent of them said the continuous policy inaction of the regulator may hurt the confidence of the business community.

While 70 per cent of the respondents felt that ideally there should be 50 basis points cut in the repo rate along, 51 per cent said the reduction could be only 25 basis points.

"The industry expects the central bank to undertake moderation in interest rates under the global as well as domestic compulsions," ASSOCHAM president Venugopal Dhoot said.

In view of the bleak outlook for the US economy, currently undergoing slump in housing market, strained financial markets, rising unemployment rate, softening in overall economic activity, the Federal Reserve has reduced its interest rate by 75 basis points.

"A possibility of further reduction is not ruled out," ASSOCHAM said.

Further slashing in Fed rate would create the situation of "arbitrage opportunities" for the global investors wanting to shift their funds from the low yield US and other developed markets, to high-return Indian market

"This would lead to surge in the capital inflows and aggravation of the problem of rupee appreciation," it said.

The RBI has been following the tight monetary policy to avoid the inflationary pressures built up with around 9 per cent growth in the economy and major supply constraints.

The CEOs poll cited rise in global food and oil prices as the major impediment to a move by the central bank for a rate cut.

The rise in borrowing cost coupled with rise in exchange rates in favour of rupee has led to slowing down in the export-oriented manufacturing and construction which have a bearing on employment, the chamber said.

It said, while the the overall growth rate of manufacturing has come down to 9.8 per cent for the period April-November 2007 as compared to 11.8 per cent a year ago, the consumer durables sectors have recorded a decline of 1.7 per cent for the eight month period against of 12.4 per cent.

Ninety two per cent of the respondents believed that there is no absolute "de-coupling" of Indian economy with that of the US. "RBI Governor has given an indication that the monetary policy will take into consideration the global situation," ASSOCHAM said. (PTI)

SBI asks borrowers to get rid of credit card debts...

NEW DELHI, Jan 28: Country’s largest lender State Bank of India today asked the borrowers to control credit card debt and get rid of high-cost liabilities at all cost.

"Control credit card debt. Do whatever you can to get rid of your high-interest debt," SBI said in an advertisement campaign launched to educate borrowers on mitigating financial risks.

The campaign follows the suggestions of the Reserve Bank of India about the need to educate borrowers who often fall into debt trap by taking loans beyond their capacity to repay.

SBI also advised bank account holders to safegaurd their accounts by setting up overdraft protection and scheduling automatic repayments.

In the educational campaign, SBI urged the customers to save and invest by establishing emergency funds and opening retirement accounts.

Asking the borrowers not to accept the advise of financial consultants without questioning, the SBI urged the people to explore the possibility of investing in mutual funds.

"When saving becomes a priority, you will truly begin to accumulate wealth," the SBI added. (PTI)