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SBI lending rates up by 0.5 pc
Double-digit inflation for some more weeks: FM
SMEs worst hit as high inflation erodes margins
Fed holds rates steady
Sale of premium fuel |
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Essar withdraws bid to buy Esmark
RIL to produce KG gas from third quarter
New fertiliser policy okayed
Rs 48.52 cr for 10 sick PSUs
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SBI lending rates up by 0.5 pc
Mumbai, June 26 Analysts say, following the rate increase by the country's biggest bank similar hikes by other players are imminent. According to SBI officials, following the increase in interest rates, all floating rate loans issued by the bank would be dearer by 50 basis points. Loans on fixed rates would enjoy the same interest rates as before, it said. So far, there is no word on the bank increasing deposit rates, though sources say, a similar increase in deposit rates, too, would come into effect in the coming days. PTI adds: The decision was taken by the bank's Asset Liability Committe (ALCO), which met here following Reserve Bank's June 24 announcement of a 0.5 per cent hike in its short0term lending rate to banks and cash reserve requirement. The revision will be applicable to all PLR-related lendings and SBI was only restoring its benchmark rates, SBI's chief financial officer Ashok Mukand told PTI here. The bank had reduced its BPLR in January given the comfortable liquidity conditions prevailing then, Mukand said. "We are now restoring our PLR which we had reduced some time back. All loans linked to the BPLR will come under the revision," Mukand said. SBI's announcement came after a host of lenders such as HDFC Bank, Jammu & Kashmir Bank and Yes Bank hiked their respective BPLRs in the range of 0.25 per cent to 1 per cent to protect margins. State Bank's chairman O.P. Bhatt had recently said the bank has seen a pressure on its margins following a steady increase in its cost of funds and would relook its interest rate structure after watching market movements. "Well, there is a pressure on our margins...we are watching the market conditions closely," Bhatt had said. SBI's ALCO had met earlier this month after the RBI had effected a 0.25 per cent hike in the repo rate but had decided not to revise its rates. However, with the apex bank further hiking its key rate and cash reserve requirement two days ago to arrest ballooning inflation, SBI, in order to protect its margins, has now hiked its BPLR.
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Double-digit inflation for some more weeks: FM
New Delhi, June 26 Ahead of new inflation data to be released tomorrow, he said he could not guess the inflation figure, but "will remain in double digit for some more weeks." He, however, disagreed with a suggestion that inflation could spoil the United Progressive Alliance's chances in the upcoming general elections. "Well, that's a premature conclusion. We will be defensive on inflation. All politics is about communication; we must communicate to the people why prices are high and efforts we are taking to moderate it," he said. Inflation touched a 13-year high of 11.05 per cent as on June 7, after a partial pass through of increase in global crude prices. Asked whether the government feels achieving nine per cent growth this fiscal would be difficult, he said: "There will be some moderation in growth rate, but growth will not fall precipitously. |
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SMEs worst hit as high inflation erodes margins
New Delhi, June 26 The SMEs report that prices of items such as steel, cement, plastics etc have gone up by as much as 60 per cent between October 2007 and May 2008, which is unprecedented in recent times. The SMEs have no cushion to bear this burden as they have been working on thin margins. Besides, there is no complete price variation mechanism for the purchase orders offered to SMEs either by the government or by private purchasers. According to the SMEs, the price offered by the purchaser is also not commensurate with the frequent increase in raw material prices. The survey states that the problems of SMEs are compounded by the recent measures taken by RBI by way of raising the CRR to 8.75 per cent and repo rate to 8.50 per cent to check inflation, which is paving the way for a rise in interest rates in the country. The SMEs are worst hit as they do not have the wherewithal to either tap the domestic capital market or raise ECBs, an option exercised by large units for meeting their credit needs. According to the survey, a resounding 31 per cent depend on banks for meeting their requirements of funds. Another 21 per cent take recourse to resources generated within the company to fulfil their financial requirements. A significant number, 46 per cent, used a mix of bank finance and internal resources for undertaking corporate investments. It was only a meagre 2 per cent of the respondents who took the ECB route to finance their operations. Under these circumstances, SMEs are of the view that the recent measures taken by RBI would result in the choking of funds to this industry, which is already reeling under the impact of rising raw material costs and a fall in demand, and accentuate the already visible deceleration in industrial output, says the survey.
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Fed holds rates steady
Washington, June 26 ''Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased,'' the Fed said. The statement marked a small step toward a tougher anti-inflation stance from a central bank that until recently had been intently focused on the economy's weakness. —
Reuters |
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Sale of premium fuel
Ludhiana, June 26 Dealers said a word from Bharat Petroleum and Hindustan Petroleum was still awaited. Only two days ago, the Punjab Petroleum Dealers Association shot a complaint to the Centre on the issue. After the recent fuel price hike, oil companies increased prices of premium fuel. The companies also asked dealers to ensure that at least 40 per cent of the fuel sold was of the premium variety. Irked, the dealers in the state had been observing protest every Wednesday by not lifting any fuel. "IOC officials told us today that they would relax the condition. They have issued instructions to their field staff regarding the same. They told us that they would not force us to sell premium fuel though they would want to promote it. We are not against promoting," said J.P. Khanna, president of Punjab Petroleum Dealers Association. In their letter, the dealers mentioned that a day after the fuel price hike, companies increased rates of premium petrol and diesel on their own. Quoting the Madhya Pradesh government's communication to dealers asking them to resist from the practice, they had urged the government to take a similar action against companies. Dealers alleged that companies were sending premium fuel without indent. We had no option but consumers were suffering, they said.
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Tata Steel net jumps to Rs 12,349 crore
Mumbai, June 26 The company, which became the world's sixth largest steel maker after the acquisition of Anglo-Dutch company Corus last year, saw its consolidated income jumping to Rs 1,32,110.09 crore in 2007-08 from Rs 25,650.45 crore in FY'07. Tata Steel's board of directors have recommended a dividend of two per cent on Cumulative Convertible Preference Shares (CCPS) of Rs 100 each payable on pro rata basis from the date of allotment of CCPS ie January 18, 2008 to March 31, 2008. The board has also recommended a dividend of 160 per cent on ordinary shares of Rs 10 each for the year ended March 31, 2008. The company's standalone net profit for the year under review climbed 11 per cent to Rs 4,687.03 crore and income grew to Rs 20,028.28 crore as against Rs 17,984.76 crore for the financial year 2006-07.— PTI
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Essar withdraws bid to buy Esmark
New Delhi, June 26 Russian company Severstal has offered $19.25 a share, compared to $19 by the Essar group. Essar Global, a subsidiary of Ruias-led Essar group, had raised the bid to $19 dollar a share from original $17 and had also extended a $110 million loan to Esmark, which helped the US steel company address a potential default. Essar has been in discussion with the United Steelworkers Union (USW) throughout the process, but later learnt of a supposed understanding between the USW and Severstal. "Essar has been at disadvantage in not knowing the terms of the USW's agreement with Severstal," Essar said in a statement adding despite their offer to commence negotiations on renewal of basic labour agreement, the USW continued its support of Severstal and has assigned its "right-to-bid" to Russian company as well. Commenting on the development, Shashi Ruia, chairman of Essar Global, said "Essar's vision is to be a major steel producer integrated from mining to finished products with a global footprint. "Essar will continue to focus on the North America market, and remains committed to increase its capacity to about 25 million tonnes globally by 2012," he added. — PTI
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RIL to produce KG gas from third quarter
Mumbai, June 26 ''Oil and natural gas production is expected to commence in the third calendar quarter of 2008," Niko Resources, which owns a 10 per cent stake in the block, said. Production will begin at the Dhirubhai-1 and 3 gas fields and the MA oil fields in the KG basin in the KG-DWN-98/3 (D6) block, according to Niko Resources. Gas production from the block is expected to be around 80 million standard cubic meters per day in the first year of production while peak oil output will be around 40,000 barrels per day. The government has asked RIL to begin supplying the first gas from this oil fields to the existing gas-based urea plants. A maximum quantity of 3 mmscmd would also be supplied to the existing gas-based LPG plants and thereafter up to 18 mmscmd to such gas-based power plants that are lying idle or are running below capacity or are likely to be commissioned in 2008-09 and to liquid fuel plants which could switch over to natural gas, the government order said.
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New fertiliser policy okayed
New Delhi, June 26 The approved scheme will provide a long-term support to the fertiliser industry to seek out new and cheaper source of phosphatic and potassic raw material, intermediaries and finished fertilisers, and will thereby help the Indian farmers to meet the nutrient requirements of their crops. Meanwhile, fertliser secretary J.S. Sarma said there would be no impact on the retail price (MRP) of fertilisers. “We have not increased the fertiliser prices in past 4-5 years”, he said. The concession scheme on P&K fertilisers, which lapsed on March 31, includes DAP, MOP, MAP and 11 grades of complex fertilisers. The new scheme would come into effect retrospectively from April 1, 2008, based on a revised framework. The scheme envisages reduction in subsidy outgo to the extent of Rs 1,163.79 crore, the minister said, adding it was based on the rationalisation of methodology and costing as estimated by the tariff commission. “It provides a realistic framework for computing input cost, conversion and handling and would encourage the P&K fertiliser industry to meet the long-term needs of the agriculture sector,” he said. Under the new scheme, indigenous DAP has been brought at par with imported DAP for calculating concessions. Providing concession to indigenous DAP on the basis of import parity price would ensure competitiveness and provide a rational basis for payment of concession, he said.
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Rs 48.52 cr for 10 sick PSUs
New Delhi, June 26 With this decision by the Cabinet Committee on Economic Affairs (CCEA), employees of these firms under the Department of Heavy Industry would get their dues for 2007, minister of state in Prime Minister's Office Prithviraj Chauhan said. Besides HMT (Watches), other sick and loss-making firms which would get benefited from the decision are Bharat Wagon Eng Co, Hindustan Cables, HMT, HMT (CW), Hindustan Photo Films, Instrumentation, National Instrument, Triveni Structurals and Tungabhadra Steel Products. — PTI |
BHEL bags Rs 506-cr contract Nokia Siemens in pact with TN ICRA ties up with US firm NK Minda Group JV Gold surges by Rs 230 Ashok Minda Group buyout
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