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European woes hit global stocks
Mumbai, May 19
Investors hit the panic button and stocks worldwide went in sell-off mode after the German government banned naked shorting in some stocks, bonds and other securities. According to analysts, global markets presumed the measure as a harbinger of more bad news on the euro front.

Bankers told to focus on financial inclusion
Chandigarh, May 19
For true financial inclusion to be achieved, banks will not just restrict themselves to open accounts. What would go a long way in helping them would be electronic benefit transfer for various government schemes (social security pensions and Centrally-sponsored schemes) and setting up of Rural Self Employment Training Institutes (RSETI).

Bankers told to focus on financial inclusion
Chandigarh, May 19
For true financial inclusion to be achieved, banks will not just restrict themselves to open accounts. What would go a long way in helping them would be electronic benefit transfer for various government schemes (social security pensions and Centrally-sponsored schemes) and setting up of Rural Self Employment Training Institutes (RSETI).

Loans: SMEs seek lower processing fee
Ludhiana, May 19
Industrial borrowers across the state are feeling the pinch of high processing and service charges being levied by banks. Since Punjab is home to small and medium enterprises (SMEs), the burden of such charges is adversely affecting the competitiveness of its industry.



EARLIER STORIES



Loans: SMEs seek lower processing fee
Ludhiana, May 19
Industrial borrowers across the state are feeling the pinch of high processing and service charges being levied by banks. Since Punjab is home to small and medium enterprises (SMEs), the burden of such charges is adversely affecting the competitiveness of its industry.

Imports up 43% in April
New Delhi, May 19
India’s imports surged by a never-seen-before $8 billion in April, indicating the rapid pace of domestic economic activity, even as the government downplayed the 36.2 per cent jump in exports.

ICICI Bank tanks 7.24 pc, BoR soars
Mumbai: ICICI Bank today plunged 7.24 per cent on concerns that it was offering way too high to take over Bank of Rajasthan, whose shares went on an upward spiral on the BSE.

Pfizer to cut 6,000 jobs
New York, May 19
The world's largest drug maker Pfizer yesterday said it would cut 6,000 jobs in Europe and North America, and close eight manufacturing plants by 2015.

Reliance shuts oil, gas output from KG basin
New Delhi, May 19
Reliance Industries has shut crude oil and gas production from its Krishna Godavari basin MA fields in the Bay of Bengal as a precautionary measure to avoid damage from tropical cyclone 'Laila'.

StanChart to hire 2,500 in India
New Delhi, May 19
Global banking major Standard Chartered today said it plans to increase its headcount in India by 2,500 people during the current year to 20,000.

Reliance shuts oil, gas output from KG basin
New Delhi, May 19
Reliance Industries has shut crude oil and gas production from its Krishna Godavari basin MA fields in the Bay of Bengal as a precautionary measure to avoid damage from tropical cyclone 'Laila'.

StanChart to hire 2,500 in India
New Delhi, May 19
Global banking major Standard Chartered today said it plans to increase its headcount in India by 2,500 people during the current year to 20,000.

Maruti to launch new Alto
New Delhi, May 19
Country's largest carmaker Maruti Suzuki India is planning to launch a new version of its small car Alto, the highest selling model in India, with a bigger engine.

 

 





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European woes hit global stocks
Sensex tumbles 467 points
Shiv Kumar
Tribune News Service

Mumbai, May 19
Investors hit the panic button and stocks worldwide went in sell-off mode after the German government banned naked shorting in some stocks, bonds and other securities. According to analysts, global markets presumed the measure as a harbinger of more bad news on the euro front.

Mirroring the global meltdown, the Sensex plunged 467.27 points or 2.77 per cent to close at 16,408.49 points. In the broader markets, the Nifty was down 146.55 points or 2.89 per cent lower at 4,919.65.

Among the major losers today were Tata Motors which fell 7.39 per cent, Sterlite Industries down 7.33 per cent, ICICI Bank down 7.24 per cent, Mahindra & Mahindra down 5.92 per cent, Reliance Communications down 5.66 per cent and Jaiprakash Associates down 5.52 per cent.

The stocks which closed in the green made marginal gains at close. Hero Honda Motors was up 0.59 per cent, Cipla up 0.29 per cent and Tata Power Company up 0.27 per cent.

All sectoral indices were in the red with metal stocks falling the steepest. The BSE Metal Index was down 4 per cent while realty, banks and auto closed more than 3 per cent lower.

Globally, Asian markets lost nearly 2 per cent while European markets fell nearly 3 per cent. Remarks by German Chancellor Angela Merkel that the euro was in danger also spooked investors.

PTI adds: A weak euro compounded concerns that austerity measures initiated by debt-laden Greece and other Euro zone nations may derail economic recovery.

The BSE Sensex opened weak, following negative cues from Asian peers and an overnight loss in the US market, and things turned ugly in the post-afternoon session as stocks in Europe slumped in reaction to Germany's ban on short selling of some financial instruments, analysts said.

In Asia, while Singapore's Straits Times index fell 2.45 per cent to 2,774.54 points, Hong Kong's Hang Seng and Australia's S&P/ASX 200 indices went down about 2 per cent to 19,578.98 points and 4,387.10 points, respectively.

However, Japanese and Chinese stocks managed to end the day almost flat, with marginal losses.

Reflecting the shaky investor sentiment, London Stock Exchange's FTSE 100 skid more than 2 per cent to 5,180.68 points in the morning session. Similarly, Germany's DAX and France's CAC 40 shed over 2 per cent to 5,987.69 points and 3,158.28 points, respectively.

“There is no end in sight to the European crisis. Sentiments are negative and investors are looking for safer investment opportunities, which is resulting in an outflow from high risk markets,” Reliance Securities said.

"Selling was so intense that the NSE Nifty shut shop below the 200-day Daily Moving Average, which is considered as very crucial support for the markets. Market breadth was ruthlessly negative," IIFL vice-president (research) Amar Ambani said.

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Bankers told to focus on financial inclusion
Ruchika M. Khanna
Tribune News Service

Chandigarh, May 19
For true financial inclusion to be achieved, banks will not just restrict themselves to open accounts. What would go a long way in helping them would be electronic benefit transfer for various government schemes (social security pensions and Centrally-sponsored schemes) and setting up of Rural Self Employment Training Institutes (RSETI).

These would be the most effective steps in taking banking to rural areas and ensuring that even the poorest of the poor get benefit of institutional finance. This was stated by KR Kamath, chairman of State Level Bankers Committee (SLBC) and CMD of Punjab National Bank.

With Punjab having 18 lakh beneficiaries under its various social security pension schemes and another 6.40 lakh beneficiaries under NREGA, the implementation of electronic benefit transfer (EBT) would ensure more financial inclusion in rural areas. “Even the setting up of RSETIs in rural areas would help in skill upgradation of rural youth and help them sustain themselves. Thus, the state government should expedite the transfer of village common land to the banks on lease, for setting up such centres,” he said. Kamath added that the state government and banks in Punjab should also promote more women self-help groups.

He said the focus of banks should be on financial inclusion and freeing the rural people from the clutches of moneylenders. Commenting on a unique debt swap model developed by banks in Bamial block of Gurdaspur, he said it was easy to develop a prototype in a small place. What is needed is a scheme that can be successfully implemented across the state.

Kamath also came down on the banks in the state for failing to improve the credit deposit ratio (CD ratio) in the four districts of Jalandhar, Nawanshahr, Kapurthala and Hoshiarpur, inspite of a monitorable action plan being formulated for these districts. While CD ratio is 40 per cent in Jalandhar, Kapurthala and Hoshiarpur, it is just 35 per cent in Nawanshahr. This, in spite of the fact that last fiscal saw an impressive growth of 17 per cent in credit and 18 per cent in deposits. He asked the state government to promote industry and mega projects in these districts to ensure better credit offtake here.

The SLBC chairman also asked public sector banks to pull up their socks and ensure better customer service. “We have no existence without customers, so we have no option but to treat them well,” he exhorted bankers.

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Bankers told to focus on financial inclusion
Ruchika M. Khanna
Tribune News Service

Chandigarh, May 19
For true financial inclusion to be achieved, banks will not just restrict themselves to open accounts. What would go a long way in helping them would be electronic benefit transfer for various government schemes (social security pensions and Centrally-sponsored schemes) and setting up of Rural Self Employment Training Institutes (RSETI).

These would be the most effective steps in taking banking to rural areas and ensuring that even the poorest of the poor get benefit of institutional finance. This was stated by KR Kamath, chairman of State Level Bankers Committee (SLBC) and CMD of Punjab National Bank.

With Punjab having 18 lakh beneficiaries under its various social security pension schemes and another 6.40 lakh beneficiaries under NREGA, the implementation of electronic benefit transfer (EBT) would ensure more financial inclusion in rural areas. “Even the setting up of RSETIs in rural areas would help in skill upgradation of rural youth and help them sustain themselves. Thus, the state government should expedite the transfer of village common land to the banks on lease, for setting up such centres,” he said. Kamath added that the state government and banks in Punjab should also promote more women self-help groups.

He said the focus of banks should be on financial inclusion and freeing the rural people from the clutches of moneylenders. Commenting on a unique debt swap model developed by banks in Bamial block of Gurdaspur, he said it was easy to develop a prototype in a small place. What is needed is a scheme that can be successfully implemented across the state.

Kamath also came down on the banks in the state for failing to improve the credit deposit ratio (CD ratio) in the four districts of Jalandhar, Nawanshahr, Kapurthala and Hoshiarpur, inspite of a monitorable action plan being formulated for these districts. While CD ratio is 40 per cent in Jalandhar, Kapurthala and Hoshiarpur, it is just 35 per cent in Nawanshahr. This, in spite of the fact that last fiscal saw an impressive growth of 17 per cent in credit and 18 per cent in deposits. He asked the state government to promote industry and mega projects in these districts to ensure better credit offtake here.

The SLBC chairman also asked public sector banks to pull up their socks and ensure better customer service. “We have no existence without customers, so we have no option but to treat them well,” he exhorted bankers.

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Loans: SMEs seek lower processing fee
Manav Mander
Tribune News Service

Ludhiana, May 19
Industrial borrowers across the state are feeling the pinch of high processing and service charges being levied by banks. Since Punjab is home to small and medium enterprises (SMEs), the burden of such charges is adversely affecting the competitiveness of its industry.

The matter has been taken up by the Apex Chamber of Commerce and Industry (Punjab) with the RBI. In a letter to the RBI, chamber president PD Sharma has stated that area of processing/service charges by the banks has remained more or less grey area and borrowers have been burdened unreasonably by it.

Agreeing with the views of the chamber, the RBI has invited suggestions from the chamber on the issue. The chamber has examined the pattern of processing and service charges by all banks. "All banks have placed the list of such charges on their websites, excluding the commonly levied charges. This has been deliberately done in order to use discretion on various types of customers," Sharma said.

The chamber alleged that the upfront fee on term loan was too high as it varies between 1 and 1.5 per cent. As a matter of principle, upfront fee on term loan should be charged only once. But some banks are charging it perpetually. The chamber has recommended this fee at Rs 500 per lakh with a ceiling of Rs 5 lakh to Rs 10 lakh.

The processing charges for working capital are also high. The SBI is charging Rs 500 per lakh on limit up to Rs 1 crore and Rs 400 per lakh thereafter with a cap of Rs 20 lakh. The chamber said this charge should not be more than Rs 200 per lakh with a ceiling of not more than Rs 5 lakh.

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Loans: SMEs seek lower processing fee
Manav Mander
Tribune News Service

Ludhiana, May 19
Industrial borrowers across the state are feeling the pinch of high processing and service charges being levied by banks. Since Punjab is home to small and medium enterprises (SMEs), the burden of such charges is adversely affecting the competitiveness of its industry.

The matter has been taken up by the Apex Chamber of Commerce and Industry (Punjab) with the RBI. In a letter to the RBI, chamber president PD Sharma has stated that area of processing/service charges by the banks has remained more or less grey area and borrowers have been burdened unreasonably by it.

Agreeing with the views of the chamber, the RBI has invited suggestions from the chamber on the issue. The chamber has examined the pattern of processing and service charges by all banks. "All banks have placed the list of such charges on their websites, excluding the commonly levied charges. This has been deliberately done in order to use discretion on various types of customers," Sharma said.

The chamber alleged that the upfront fee on term loan was too high as it varies between 1 and 1.5 per cent. As a matter of principle, upfront fee on term loan should be charged only once. But some banks are charging it perpetually. The chamber has recommended this fee at Rs 500 per lakh with a ceiling of Rs 5 lakh to Rs 10 lakh.

The processing charges for working capital are also high. The SBI is charging Rs 500 per lakh on limit up to Rs 1 crore and Rs 400 per lakh thereafter with a cap of Rs 20 lakh. The chamber said this charge should not be more than Rs 200 per lakh with a ceiling of not more than Rs 5 lakh.

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Imports up 43% in April

New Delhi, May 19
India’s imports surged by a never-seen-before $8 billion in April, indicating the rapid pace of domestic economic activity, even as the government downplayed the 36.2 per cent jump in exports.

The "real interesting story here is the huge surge in imports because I have never seen numbers this large... $8 billion jump in a month," Commerce Secretary Rahul Khullar said today.

Imports were up by a huge 43.3 per cent to $27.3 billion in the first month of the current fiscal, indicating that the domestic industry was consuming more and its output could grow.

Factory production has also been rising steadily, with a 13.5 per cent growth in March and 10.4 per cent for 2009-10.

Exports were up 36.2 per cent to $16.9 billion in April, but the government said this was more due to low base effect than a healthy demand revival. Year-ago exports numbers was $12.4 billion.

"Don't get carried away by these numbers... Because base was low and that's why you have an increase in percentage terms. You are still running below the export level in April 2008-09 ($18.5 billion)," Commerce Secretary Rahul Khullar said here.

Exports had shot up by 54.1 per cent in March, also on account of low base effect - wherein low growth in the past makes even a nominal increase now look huge.

On exports, Khullar said some of the laggard sectors like engineering goods and textiles have joined those performing well like gems and jewellery and petroleum products. Exports of engineering goods and textiles went up by 16 per cent and 30 per cent, respectively.

Gems and jewellery exports increased 36 per cent.

In the import basket, crude oil bill increased by 70 per cent, gems and jewellery by 118 per cent, chemcials 47 per cent and iron and steel 141per cent.

India's exports contracted for 13 straight months starting October 2008, before turning positive in November 2009. — PTI

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ICICI Bank tanks 7.24 pc, BoR soars

Mumbai: ICICI Bank today plunged 7.24 per cent on concerns that it was offering way too high to take over Bank of Rajasthan, whose shares went on an upward spiral on the BSE.

Shares of ICICI Bank closed at Rs 825, down 7.24 per cent on Bombay Stock Exchange. During the trade the stock plunged nearly 8 per cent to touch an intra-day low of Rs 818.35.

"The stock got a beating from the investors on the concerns that the deal would be a costly affair for the bank in the short run. The news is coupled with the bearish market overall which pulled the stock to close on a weak note on the bourses," SMC Capital vice-president Rajesh Jain said.

Meanwhile, shares of Bank of Rajasthan (BoR) surged 20 per cent to touch a year-high level of Rs 119.40.

"The deal is good for a small bank like Bank of Rajasthan whose stock has seen the positive movement," Jain added. — PTI

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Pfizer to cut 6,000 jobs

New York, May 19
The world's largest drug maker Pfizer yesterday said it would cut 6,000 jobs in Europe and North America, and close eight manufacturing plants by 2015.

The company said as part of a plant network strategy, it has decided to close manufacturing operations in eight locations across Puerto Rico, Ireland and the United States over the next five years.

"This implementation of the first phase of Pfizer's previously-announced plant network strategy includes recommendations to cease operations at eight manufacturing sites in Ireland, Puerto Rico, and the United States by the end of 2015...," Pfizer said in a statement.

The company's website stated that the plant network strategy, announced in 2008, aimed at gradually reducing the number of facilities to 41 by 2010.

Besides, it plans to cut output at six other plants in Germany, Ireland, Puerto Rico, United Kingdom and the United States. "Restructuring of our global plant network is critical to our efforts to remain competitive..." Pfizer president Nat Ricciardi said. — PTI

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Reliance shuts oil, gas output from KG basin

New Delhi, May 19
Reliance Industries has shut crude oil and gas production from its Krishna Godavari basin MA fields in the Bay of Bengal as a precautionary measure to avoid damage from tropical cyclone 'Laila'.

The company shut oil and gas production from the MA field lying in prolific KG-D6 block yesterday, a source in know of the development said. Gas production from the Dhirubhai-1 and 3 fields was, however, not affected.

MA fields was producing around 32,000-33,000 barrels of oil per day and 8 million standard cubic meters per day of gas. "This has stopped since yesterday. The shutdown will be for a minimum 48 hours," the source said.

KG-D6's current gas production of around 63 mmscmd included 8 mmscmd from MA fields, and with the fields being shut, the output would come down to around 55 mmscmd. — PTI

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StanChart to hire 2,500 in India

New Delhi, May 19
Global banking major Standard Chartered today said it plans to increase its headcount in India by 2,500 people during the current year to 20,000.

The UK-based bank, which is looking at raising up to $750 million through issue of Indian Depository Receipts (IDR), currently employs 17,500 people in India.

"We hire people to meet our growth needs. In 2010, we will hire around 2,500 people for India business. The number was similar last year," Standard Chartered's India CEO Neeraj Swaroop told reporters here.

The bank is also planning to increase its branches network in the nation and is awaiting regulatory approval for the same.

"The number of branches that we can open are driven by the RBI licence. We would be opening 100 new ATMs by August this year and take the total number to 350," Swaroop said. — PTI

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Reliance shuts oil, gas output from KG basin

New Delhi, May 19
Reliance Industries has shut crude oil and gas production from its Krishna Godavari basin MA fields in the Bay of Bengal as a precautionary measure to avoid damage from tropical cyclone 'Laila'.

The company shut oil and gas production from the MA field lying in prolific KG-D6 block yesterday, a source in know of the development said. Gas production from the Dhirubhai-1 and 3 fields was, however, not affected.

MA fields was producing around 32,000-33,000 barrels of oil per day and 8 million standard cubic meters per day of gas. "This has stopped since yesterday. The shutdown will be for a minimum 48 hours," the source said.

KG-D6's current gas production of around 63 mmscmd included 8 mmscmd from MA fields, and with the fields being shut, the output would come down to around 55 mmscmd. — PTI

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StanChart to hire 2,500 in India

New Delhi, May 19
Global banking major Standard Chartered today said it plans to increase its headcount in India by 2,500 people during the current year to 20,000.

The UK-based bank, which is looking at raising up to $750 million through issue of Indian Depository Receipts (IDR), currently employs 17,500 people in India.

"We hire people to meet our growth needs. In 2010, we will hire around 2,500 people for India business. The number was similar last year," Standard Chartered's India CEO Neeraj Swaroop told reporters here.

The bank is also planning to increase its branches network in the nation and is awaiting regulatory approval for the same.

"The number of branches that we can open are driven by the RBI licence. We would be opening 100 new ATMs by August this year and take the total number to 350," Swaroop said. — PTI

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Maruti to launch new Alto

New Delhi, May 19
Country's largest carmaker Maruti Suzuki India is planning to launch a new version of its small car Alto, the highest selling model in India, with a bigger engine.

According to industry sources, the company plans to launch the new Alto with a one-litre petrol engine from its latest generation of engine, the K -series.

When contacted, Maruti Suzuki India chairman RC Bhargava told PTI, "Alto needs a facelift. It has been there for quite a while." He, however, declined to comment when a refreshed Alto would be launched and what kind of engine would be fitted on the new version.

Last month, MSI had introduced BS IV-compliant Alto on the existing 800cc F Series engine. — PTI

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BRIEFLY

REC net up 44 pc
Mumbai:
Rural Electrification Corporation (REC) on Wednesday reported a growth of 44.58 per cent in its net profit at Rs 561 crore for the quarter ended March 31, 2010, over the same period last year. Total income rose to Rs 1,869.5 crore for the January-March quarter 2010, from Rs 1,447 crore in the same period previous fiscal, REC said. The board has recommended a final dividend of Rs 3.50 per share for the year 2009-10, subject to approval of the shareholders, the filing added. — PTI

Win-Medicare deal
New Delhi:
Umesh Modi Group firm Win-Medicare on Wednesday announced the signing of a licensing deal with France-based Pierre Fabre Oral to sell 14 products from the French firm's portfolio in the domestic market. "It is for the first time that we are entering into the oral care segment under a licensing deal with Pierre Fabre," Modi Group of Industries chairman, president and CEO Umesh K Modi said. — PTI

Essar Oilfields bags contract
New Delhi:
Essar Oilfields Services Ltd, a wholly owned subsidiary of Essar Shipping Ports & Logistics, on Tuesday said it has won its first contract outside India, valued at $40 million. The contract from Vietsovpetro JV (VSP) — an oil exploration and production company in Vietnam — is for drilling a 4,800-meter offshore well. — PTI

JK Paper net jumps 80 pc
New Delhi:
JK Paper has reported an 80 per cent jump in net profit at Rs 27.1 crore for the March quarter over Rs 15.08 crore in the year-ago period. During the quarter, it reported a 12.5 per cent rise in its net sales at Rs 294.21 crore over Rs 268.20 crore in the corresponding quarter, JK Paper said. — PTI

Venus Remedies
Chandigarh:
Baddi-based Venus Remedies on Tuesday said it would launch once-in-a-day injectable painkiller, aceclofenac OD, in the country by the end of this year. The company, which claimed that the drug is the world's first once-in-a-day injectable painkiller, aims at 10 per cent market share. Aceclofenac is a NSAID (non-steroidal anti- inflammatory drug) used for the relief of acute as well as chronic pain and inflammation in various diseases. — TNS

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