The Tribune, Chandigarh, India

	RBI for freeing of interest rate on savings account Mumbai, April 28 The Reserve Bank today said deregulation of the interest rate on savings banks accounts would benefit savers, as it would enable lenders to come out with innovative products to attract more funds from low income households. "Deregulation will also allow banks to introduce product innovations which could also benefit the depositors," the RBI said in its draft discussion paper while inviting public comments on freeing the interest rate on savings account. While the RBI deregulated interest rates on fixed deposit schemes in 1997, it continues to fix the rate on savings deposits. Presently, banks pay interest at the rate of 3.5 per cent on saving accounts, which was fixed in 2003. Giving the pros and cons of deregulation of savings account interest rates, the RBI paper also said the apprehensions that such a move would lead to "unhealthy" competition among the banks are unfounded. Pointing out that the deregulation of fixed deposit rates 13 years ago did not result in unhealthy competition among the banks, "deregulation of savings deposit rate may also not result in any unhealthy competition," it said. Moreover, the paper added that savings deposit interest rates cannot be regulated for all times to come when all other interest rates have already been deregulated, as it creates distortions in the system. International experience suggests that in most countries, interest rates on savings bank accounts are set by the commercial banks based on market interest rates, it said. Citing the fact that most countries in Asia experimented with interest rate deregulation, the paper said these resulted in positive real interest rates, which in turn contributed to an increase in financial savings. Deregulation of the interest rate on savings deposit will make the rate flexible along with other interest rates, depending on the market conditions. Since savings bank deposits in rural, semi-urban and urban areas are held largely for savings purposes, deregulation of interest rates is likely to enhance its attractiveness in these areas, it said. The paper also noted that the flexibility will have another major advantage in that it will help improve monetary transmission. Since savings deposits constitute a significant portion of aggregate deposits, regulation of interest rates on such deposits has impeded the transmission of monetary policy impulses. On the negative side, the deregulation could lead to an asset-liability mismatch and could adversely affect small savers and pensioners. The last date for sending suggestions and comments on this issue is May 20. — PTI
	Subsidy on two fertilisers hiked Tribune News Service New Delhi, April 28 The government today hiked subsidy on two important fertilisers - Di-Ammonium Phosphate (DAP) and Muriate of Potash (MoP) - to prevent a rise in their domestic prices following a surge in global rates. The additional burden of subsidy is estimated to be about Rs 10,000 crore for the current financial year after the government raised the benchmark price level for fixing subsidy for these nutrients. “The Cabinet today accorded approval to the proposals for revision in the benchmark prices for nutrient-based subsidy (NBS) for 2011-12 for phosphatic and potassic fertilisers,” an official statement said. According to a senior official in the Fertiliser Ministry, the benchmark price for DAP has been increased to $612 per tonne from the current level of $580 per tonne and that of MoP to $420 per tonne from $390 per tonne, taking into account the prevailing global prices. The move has been necessitated to insulate fertiliser firms from high global prices and maintain domestic prices at affordable rates to farmers, he added. Regarding impact on retail price to farmers, he said, “There won’t be any change in MRP of DAP and MoP. The government is bearing extra subsidy for costlier imports.” The Cabinet, however, gave freedom for fertiliser companies to increase the MRP of DAP by up to Rs 600 per tonne from existing Rs 10,750 per tonne to recover its incidental cost if any, the official said. The farmers would be able to buy fertilisers at subsidised rates at the maximum retail price (MRP), it added. From 2010-11 fiscal, the government is fixing subsidy on nutrients like N (nitrogen), P (phosphorus) and K (potassium), which is linked to the import parity price of Urea, DAP and MoP. Subsidy is reimbursed to fertiliser firms for selling the indigenous or imported fertilisers at lower price to farmers.
	IMF pegs India’s growth at 8.2% Washington, April 28 India's economic growth rate will moderate to 8.2 per cent in 2011 and fall further in the next year from 10.4 per cent in the previous year, mainly because of tight monetary policy measures, the International Monetary Fund (IMF) said today. It cautioned that the strong growth across Asia could lead to overheating, a phenomena when the production capacity of an economy fails to keep pace with aggregate demand. "The IMF warns that Asia's rapid recovery from the global economic crisis has been accompanied by pockets of overheating across the region," it said in its Asia and Pacific 'Regional Economic Outlook' report. "In India, base effects and policy tightening are projected to slow growth from 10.4 per cent in 2010 to a more sustainable 8.2 per cent in 2011 and 7.8 per cent in 2012," IMF said. The IMF report comes close on the heels of Asian Development Bank (ADB) projecting India's growth at 8.2 per cent for the financial year 2011-12. The RBI has already hiked policy rates eight times since March 2010 to tame inflation. During the annual credit policy to be announced on May 3, the RBI is expected to further raise short-term lending (repo) rate by 25 basis points. The IMF report also said that during 2010, India with a growth rate of 10.4 per cent overtook China which grew by 10.3 per cent during the year. Pointing out that India and China will play leading role in Asia's growth, the report said the region's economy as a whole would see growth rate moderating to 6.8 per cent in 2011 from 8.3 per cent in the previous year. Asia's growth during 2012 has been projected at 6.9 per cent. — PTI
	Perfetti to foray into snacks market Sanjeev Sharma Tribune News Service New Delhi, April 28 Confectionery major Perfetti Van Melle in a global first is diversifying into a non-confectionery segment in India with packaged snacks and the launch will kick off in Punjab and Andhra Pradesh. Sameer Suneja, managing director, Perfetti Van Melle India told The Tribune that the foray into snacks for the first time is to tap India’s unique market and taking into account the potential for the packaged foods market here. Perfetti, which has brands like Alpenliebe, Center Fresh, Mentos and Happydent, is entering the salty snacks business with the launch of ‘Stop Not’ range of snacks. The Indian subsidiary of the international confectionery major, Perfetti Van Melle, a multinational having a wide product range of gums, candies, chewies and lollipops, is the first country in the group to take this major step to diversify its product portfolio to include ready to eat, packaged salty snacks. Stop Not will be available in outlets across Punjab and Andhra Pradesh. The snacks market in India is estimated at around Rs 6,200 crore. Suneja said given the fact that the packaged foods segment in India has a lot of potential and the fact that Perfetti’s existing distribution channel is complementary to that of packaged snacks, Perfetti decided to go in for an extension of its business here. On being asked about the intense competition in the packaged foods category, Suneja said the whole market has a long way to go and as the economy grows and there is more acceptance of food on the go, the category will continue to grow. Suneja said Perfetti is not yet targeting a market share and will watch how the product is accepted. On the Perfetti move to foray into the non-confectionery segment in India, he said Asia is where the growth is and India is a unique market with its own flavour and this diversification will first be tested in India. Perfetti’s confectionery business has doubled in the last 3 years and for 2010, it clocked revenues of Rs 1,200 crore. Speaking on this diversification, Suneja said salty snacks category has seen a lot of action in the last couple of years and has huge potential to grow.
	Sony faces legal action over data breach * Analyst estimates losses to top $1.5 bn * Gamers threaten to leave Playstation network * Stock falls 5 per cent Tokyo/Wilmington, April 28 Sony Corp could face legal action across the globe after it belatedly disclosed a security breach of its popular PlayStation Network, infuriating gamers and sending the firm's shares down 5 per cent in Tokyo on Thursday. Sony shut down the network on April 19 after discovering the breach, one of the biggest online data infiltrations ever, but did not tell the public about the theft until Tuesday. In the US, several members of Congress seized on the breach, in which hackers stole names, addresses and possibly credit card details from 77 million users. One US law firm filed a lawsuit in California on behalf of consumers. "Gamers are angry that Sony's CEO hasn't come out to explain the situation and investors are disappointed over the company's corporate governance," said Michael Wang, manager of overseas funds at Prudential Financials in Taipei, which owns shares in Sony. Sony's PlayStation Network, a service that produces an estimated $500 million in annual revenues, provides access to online games, movies and TV shows. Nine out of 10 of PlayStation's users are based in the United States or Europe. Gamers could ditch Sony and analysts said people looking to buy a video game console could steer toward Microsoft Corp's Xbox, which has its own popular online network. Security experts said Sony would need to account for the loss of business — as well as damage to its brand — when it tallies up the cost. Other costs include notifying customers of the attack and bringing in experts to cleanse its network. Larry Ponemon, chairman and founder of the Ponemon Institute, said the theft could cost Sony more than $1.5 billion, or an average of $20 for each of the 77 million customers whose data was potentially compromised. Sony shares closed down 4.5 percent after falling more than 5 per cent at one stage, while the broad market rose 1.6 per cent. The stock has now lost more than 8 per cent this week. — Reuters
	Mahindra Satyam to hire 18k employees New Delhi, April 28 IT firm Mahindra Satyam today said it plans to hire about 18,000 people during this fiscal. "We have plans of hiring about 18,000 people this year (FY'12). Over 5,000 are from campuses and the rest are from lateral hiring or recruitment of experienced hands," Mahindra Satyam Head Recruitment and Media Sridhar Maturi told PTI. At the end of the third quarter (October-December period), Mahindra Satyam's headcount stood at 28,832, an increase of 764 personnel from 28,068 employees on September 30, 2010. Maturi further added, "The campus hiring will be predominantly in India and the lateral hiring is from across the world." The company has its development and delivery centres in the US, Canada, Brazil, the UK, Hungary, Egypt, UAE, India, China, Malaysia, Singapore and Australia by which the company serves numerous clients, including several Fortune 500 companies. — PTI
	Corporate Results ICICI Bank Q4 net up 17 pc Mumbai, April 28 ICICI Bank today reported a 16.85 per cent rise in consolidated net profit to Rs 1,567.93 crore for the quarter ended March 31, 2011. Total income of the bank rose to Rs 18,178.99 crore in the fourth quarter of FY12 from Rs 16,212.02 crore in the corresponding period a year ago, the filing said. For the entire fiscal, consolidated net profit of the bank increased by 30.46 per cent to Rs 6,093.27 crore, against Rs 4,670.29 crore in 2009-10, it added. The Board of Directors has recommended a dividend of Rs 14 per share for the year-ended March 31, 2011 against Rs 12 in the previous year, it said. Biocon net up 25 pc Biotechnology major Biocon today reported a growth of 25.04 per cent in consolidated net profit to Rs 100.81 crore for the fourth quarter ended March 31, 2011, riding on the back of robust growth across all business segments. The company's total income rose to Rs 703.23 crore in the fourth quarter, compared to Rs 658.21 crore in the same period last year, Biocon said. JSW Energy Sajjan Jindal-led JSW Energy today reported about 13 per cent rise in consolidated net profit at Rs 841.75 crore for the financial year ended March 31, 2011. It witnessed a whopping 79 per cent jump in net sales at Rs 4,175.15 crore compared to Rs 2,336.41 crore during the previous fiscal, an official statement said. BoB net up 43 pc Bank of Baroda today recorded 43 per cent rise in net profit at Rs 1,294.3 crore for the fourth quarter ended March 31, 2011. Total income rose to Rs 7,168.6 crore for the quarter ended March 31, 2010, from Rs 5120.7 crore in the same period last fiscal. HCL Info profit dips IT firm HCL Infosystems today reported a decline of 11.2 per cent in consolidated net profit at Rs 53.28 crore for the quarter ended March 31, 2011. Net sales of the company declined to Rs 2,730 crore during January-March quarter, as against Rs 2,814.50 crore in the same year-ago period. Vijaya Bank Vijaya Bank today posted a two-fold jump in net profit at Rs 130.92 crore for the March quarter of the 2010-11 fiscal. During the period, the bank clocked a total income of Rs 1,761.66 crore, against Rs 1,511.67 crore in 2009-10. — PTI