New Delhi, September 5
Calling the first quarter GDP growth numbers as “disappointing”, Finance Minister P Chidambaram today said the government would look into the issue of why the numbers reported by most states are above 5 per cent while the overall numbers of the Central Statistical Office (CSO) for GDP growth are below that mark.

Speaking in the Lok Sabha, Chidambaram said he was not "basing any value judgement" on the data but was only sharing information.

He said all but four states had reported state GDP growth of more than 5 per cent, but the CSO numbers were lower. The first quarter numbers came in at 4.4 per cent which the Finance Minister said was disappointing as growth was expected to pick up.

Adding that the government was concerned by the growth decline in the first quarter, Chidambaram said the government would look into the figures as to how the state numbers were higher than the CSO numbers.

BJP leader Yashwant Sinha raised the point that the Finance Minister's statement would raise doubts about the growth numbers among the observers. He pointed out that the overall GDP numbers were not just the aggregate of the state GDP numbers but also included several items like foreign trade, services among others which were not accounted by the states.

Chidambaram also used the GDP numbers of states to press the point that there were no need for gloom and pessimism. We will bounce back.

Conceding that economy is going through a period of stress, he said, the government has been taking corrective steps to check rupee slide.

"The value of the rupee is indeed a matter of concern. The rupee must find its appropriate level...we think it has overshot its value. The rupee correction will take place", he said, winding up a discussion on the first batch of supplementary demands for grants which was later passed by voice vote.

The value of the rupee depends upon various macro-economic factors like fiscal deficit, current account deficit and inflation, he said, adding Prime Minister Manmohan Singh has said some of the corrections in the value of the rupee were the most-needed adjustments.

The Finance Minister added that enough funds will be provided to the Uttarakhand government for reconstruction work, including funds from World Bank and Asian Development Bank. As part of the grants, initially, Rs 2 crore is being provided for the Kedarnath temple to clear the rubble.

Of the Rs 5000 crore set aside in the Budget, as part of the grants, Rs 1000 crore each is being provided for the Nirbhaya Fund, Skill Development programme and all-women's Bank.

Maintaining that the government is spending money carefully in light of the fiscal consolidation, Chidambaram said the Rs 90000 crore provided this year would be sufficient for the Food Security Bill as the states would have to take up a number of steps for the rollout.

New Delhi, September 5
Moody's Investors Service today downgraded subordinated debt ratings of 11 Indian banks, including SBI, ICICI Bank and HDFC Bank.

The subordinated debt and junior subordinated debt ratings of eight public sector banks and three private lenders were lowered following a review that started on June 3, Moody's said in a statement.

The senior obligation ratings of the banks and their standalone baseline credit assessments were not affected, it said. The other banks affected are Axis Bank, Bank of Baroda, Bank of India, Canara Bank, IDBI Bank, Indian Overseas Bank, Syndicate Bank and Union Bank of India.

The downgrade reflects the increasing international trend of imposing losses on holders of subdebt securities (creditor "bail-in") as a pre-condition for distressed banks to receive government support, Moody's said. As a consequence, Moody’s assumes that the Indian government support is less likely to be forthcoming for the holders of such securities. “The global financial crisis has demonstrated that support can be provided selectively, with the costs being shared with subordinated creditors of a bank, without triggering any contagion, as it was previously feared," Moody's Vice President Gene Fang said in the statement.

Moody’s analysis observes that India has a modern and progressive approach to bank regulation. There is no explicit legal power allowing Indian regulators to selectively impose losses on subdebt holders outside of a liquidation process. However, as a member of the G20 and the Financial Stability Board (FSB), India could move towards adopting a bank resolution framework that imposes losses on subordinated debt holders, it said. — PTI

New Delhi, September 5
Auto maker Ford India today said it has hiked prices by 1-5 per cent on different models with immediate effect to offset rising input costs.

"Effective September 5, 2013, the prices will be increased in the range of 1 per cent to 5 per cent across majority of Ford's products depending on specific model and trim," Ford India said.

The company, however, did not disclose the details. Ford India's popular models in India include compact car Figo, sedan Fiesta and the recently launched compact sports utility vehicle EcoSport. Figo is priced between Rs 3.91 lakh and Rs 6.08 lakh, while EcoSport is priced between Rs 5.59 lakh and Rs 9.37 lakh. Fiesta is priced between Rs 7.46 and Rs 10.30 lakh (all ex-showroom Delhi).

The revision in prices is due to consistently rising input costs as a result of macroeconomic factors, including high inflation, high interest rates, and the depreciating rupee, the company said.

"Input costs have been consistently increasing and this is expected to continue for the foreseeable future. Although we have absorbed increases in costs over the past period, the situation is such that we now need to revise the prices of our vehicles," Ford India Executive Director, Marketing, Sales and Service, Vinay Piparsania said. — PTI

New Delhi, September 5
The government is likely to clear by next week the appointment of legal advisers to manage the disinvestment of 5 per cent stake in Coal India (CIL).

“There is a meeting on September 10 wherein legal advisers for managing Coal India stake sale would be selected," a source said.

There is a proposal to appoint two legal advisers for the job, the source added. "One would be a domestic legal adviser and another would be international one," the source added.

Goldman Sachs, Credit Suisse, Deutsche Bank and SBI Capital Markets are among seven merchant bankers selected to manage the stake sale in CIL.

The government currently holds 90% stake in the company. Shares will be alloted to CIL employees at 5% discount to the lowest cut-off price. A maximum of 10 per cent of the offer will be kept for employees.

The Disinvestment Department pared a plan to sell 10 per cent stake in CIL to placate employee unions.

The five major trade unions representing the workers of Coal India have decided to go on a three-day strike from September 23.

CIL was listed on the bourses in 2010 after the government raised Rs 15,199 crore by selling 10 per cent stake in the country's biggest initial public offering. The company has a cash balance of about Rs 60,000 crore.— PTI

New Delhi, September 5
The Employees’ Provident Fund Organisation (EPFO), a retirement fund manager, will launch an online facility tomorrow where over 5 crore subscribers can view their updated accounts.

“We will launch the facility tomorrow where subscribers can track their accounts online on a real-time basis and check their updated accounts,” EPFO’s Central Provident Fund Commissioner KK Jalan said.

At present, subscribers get account statements once a year. The EPFO has to dispatch annual PF account slips by September. The PF slips for 2012-13 are supposed to be provided by September 30, this year.

Sometimes, it takes longer to receive the statements because the EPFO hands them over to employers for distribution to workers.

The new facility will enable subscribers to see their updated accounts and take printouts for their records. Jalan said EPFO members would be able to see their account balances, including credited interest, as of March 31.

For the period starting in April, they would be able to see the amounts credited to their accounts every month without the interest component because the rate of return on PF deposits for this fiscal has not been announced, he added.

Jalan also said the EPFO would issue annual PF account slips on demand.

The facility will be launched by Labour Minister Sis Ram Ola tomorrow at the EPFO headquarters in the capital.

All members, including those with inoperative accounts, will benefit from online access, Jalan said. The EPFO makes accounts inoperative when a contribution is not made for 36 months in a row. — PTI

BRIEFLY

Samsung unveils smartwatch
BERlin: Korean giant Samsung Electronics unveiled a digital watch, Galaxy Gear, that can run applications and interact with its own family of smartphones, as it battles to maintain supremacy in high-end mobile market against arch rival Apple Inc. Galaxy Gear, which came ahead of an expected smartwatch from Apple, is aimed at shaking off criticism that it has been a follower rather than an innovator. Samsung also unveiled the Galaxy Note 3, a slimmer and lighter version of the Note 2.— PTI

Audi sales up 20.52% in August
New DELHI: Luxury car maker Audi India on Thursday reported a 20.52 per cent rise in sales in August at 875 units. The company had sold 726 units in the same month of last year, Audi India said. Audi India Head Joe King said, “We are confident that our exciting products and efficient network will enable us to meet our targets in spite of the current adverse economic sentiments.” — PTI

Haryana notifies govt stock sale 
Chandigarh: The Haryana Government has notified the sale of Haryana Government stock (securities) for a 10-year tenure at an aggregate amount of Rs 500 crore. A notification to this effect has been issued by the Finance Department, Haryana. As per the notification, the proceeds of the loan will be utilised for financing capital expenditure in connection with the development programmes of the state government.— TNS

Air India hikes fares
NEW DELHI: With a nearly 15% hike in oil prices and a fall in the rupee, Air India (AI) on Thursday joined other airlines in raising its fares with its officials saying these were being increased to the levels two-three months ago. AI and some other airlines had announced special fares in June, which were 10-15% lower, to attract more passengers. “We are restoring the fares to the normal levels which existed in June,” airline sources said. — PTI