The Tribune, Chandigarh, India

SBI extends 8 pc home loan scheme

Mumbai, November 6
India's largest lender State Bank of India has extended its special home loan scheme at 8 per cent interest rate by over four months to March 31, 2010, a move which would provide relief to small home loan borrowers.

The bank, which offers the special scheme under 'My Home Campaign', offers 8 per cent fixed interest rate for five years for loans up to Rs 5 lakh, with a maximum tenure of 10 years.

The scheme was originally slated to end tomorrow. For loans above Rs 5 lakh and up to Rs 50 lakh, interest rate has been fixed at 8 per cent during the first year and 8.5 per cent during second and third years, SBI said in a statement here.

The bank is also offering SBI MaxGain, under which it offers home loan as overdraft with possibility of saving interest. Targeting customers buying high-end properties, the bank is offering SBI Advantage Home Loan, which would carry a fixed interest rate of 8 per cent during the first year and 9 per cent during second and third years, SBI said.

These schemes help clients to know about their loan repayment obligations at low interest rates for 3 to 5 years, the bank said. After the offer period, customers will have the option to opt for a fixed rate with a reset frequency of five years or floating interest rate linked to SBI's advance rate for the remaining loan term, SBI said.

SBI had launched these products in August this year for a limited period of three months. — PTI

Cuts deposit rates by 25-50 bps

The SBI on Friday reduced deposit rates on various maturities by 25-50 basis points effective from November 9.

With this, deposits with a maturity of 181 days to less than one year will now carry an interest rate of 5.25 per cent against 5.75 per cent earlier, a bank communique to the Bombay Stock Exchange said.

Similarly, deposits for 1 year to less than 2 years, 2-3 years and 3-5 years will attract interest of 6 per cent (6.25 per cent), 6.5 per cent (6.75 per cent) and 6.5 per cent (7 per cent), respectively, the bank said.

Deposits with a duration of 15-45 day, 46-90 day and 91-180 day will now attract interest rates of 2.5 per cent (2.75 per cent), 3.5 per cent (3.75 per cent) and 4.75 per cent (5 per cent), it said. — PTI

Another SC judge opts out of corporate case
Legal Correspondent

New Delhi, November 6
Justice SH Kapadia, the second senior-most judge of the Supreme Court, today opted out of a corporate case, citing possible conflict of interest.

Justice Kapadia is the third judge within two days to quit business-related cases. On Wednesday, Justice RV Raveendran had pulled out of the gas dispute case of Ambani brothers, Mukesh and Anil, stating that he had just then come to know of her daughter's association with a law firm that was assisting a sister concern of RIL in global acquisitions. The same day, Justice Markandey Katju also recused himself from another case, involving RIL and BPCL, as his wife had shares in an RIL group company.

Justice Kapadia today refused to hear a case relating to London-based Vedanta Resources' public offer to buy additional stake in Sesa Goa that deals in iron ore exports. The judge apparently holds shares in a sister company.

Meanwhile, the Supreme Court today issued notice to advocate Prashant Bhushan and Tarun Tejpal, editor-in-chief of Tehelka magazine, on a contempt petition filed by senior counsel Harish Salve, who is amicus curaie in several cases pending before the Forest Bench headed by Chief Justice KG Balakrishnan.

According to the criminal contempt petition, Bhushan allegedly made insinuating remarks against Justice Kapadia in the course of an interview which the magazine published.

Tatas to make affordable houses in more cities

Munnar (Ker), November 6
Upbeat over the good response to its affordable housing venture in Mumbai, Tata Group is planning to extend the scheme to other major cities across the country. The group is looking for housing projects in Kolkata and Bangalore in the next phase, Tata Group chairman Ratan Tata told reporters here.

Tata was here to attend the silver jubilee function of the company-run High Range School.

He said the company's affordable housing projects in Mumbai had evinced keen interest from all parts of the country and some foreign countries as well.

Tata said the government of Maldives had also shown interest in the company's housing project. — PTI

BSNL joins tariff war
Launches per-second billing plan
Tribune News Service

New Delhi, November 6
The state-run telecom operator, BSNL, today joined the band of private telecom operators in offering the per-second billing. Under the new billing plan, users would be able to make local and STD calls within BSNL network at the rate of one paisa per second, BSNL CMD Kuldeep Goyal said here today.

Addressing the media, he said another plan that has also been introduced allows local and STD calls to any network at 49 paise per minute.

The 49 paise per minute call is expected to help BSNL grab more users and take on the competition, as it takes the tariff to new low as far as STD calls are concerned.

A number of private telecom operators have already announced per-second billing, mainly for its pre-paid customers after some of the new entrants started the trend to break subscribers from the existing telecom operators.

BSNL also said it has placed purchase order for mobile equipment for 20 million GSM lines for the south zone with Chinese firm Huawei and will not call for any fresh bids.

"We have already given an order to Huwaei for the 2G lines in south zone. The Advanced Purchase Order is for 2G part which is roughly 20 million. Immediate order will be for 8 million," Goyal said.

BSNL had been negotiating hard with telecom equipment suppliers for its Rs 32,000 crore project to expand GSM network by 93 million lines. The lack of availability of lines has led to BSNL market share going down and also its profit margins.

IDBI’s follow-on public offer in Jan

New Delhi, November 6
State-owned IDBI Bank today said it would come out with a follow-on public offer in January next year to meet its future capital requirements. It also plans to raise $500 million through bonds from overseas to fund some of the Indian corporates' overseas expansion programmes.

"We plan to come out with an FPO (Follow-on public offer) in January," IDBI Bank chairman and managing director Yogesh Agarwal told reporters here.

The bank requires about Rs 15-16,000 crore in the next three to four years, he said.

Asked about the amount it plans to raise, Agarwal said, "Whole size of the issue would be double of what Government of India is willing to subscribe." "If I come out with issue of Rs 2, Government of India will have to subscribe one and the public has to subscribe remaining one," he said. — PTI

4 Indians charged in hedge fund scam

New York, November 6
The FBI has charged a further 14 people, including two Indians and Wall Street professionals, in a widening $53 million insider trading scam, the largest-ever such case in the USA. The latest action brings the number of people who have been charged in the case to 20, including four Indians.

The scam came to light last month with the arrest of Sri Lankan Tamil-origin billionaire Raj Rajaratnam, founder of the Galleon Group founder and hedge fund operator, and five others, two of whom were Indians.

Deep Shah, a former analyst at the Moody's Investor Service, and Gautham Shankar, a former proprietary trader at Schottenfeld Group in New York, were charged yesterday. Shankar has pleaded guilty, while Shah is still at large.

Anil Kumar and Rajiv Goel (both 51) are the two other Indians who were were arrested last month for allegedly committing the fraud.

US Attorney Preet Bharara and New York's assistant FBI director Joseph Demarest today said the accused took part in insider trading schemes that "generated more than $20 million in illegal profits."

The people charged included hedge fund managers and trading firm executives, lawyers and corporate insiders, the prosecutor and FBI officer said in a statement.

Of the 14, eight were arrested yesterday, while a ninth man was being sought, and later released on bail. Five others had already been charged and have pleaded guilty in a court in New York.

Rajaratnam received 13 charges, four counts of conspiracy and eight counts of security fraud. Galleon Group is a hedge fund with up to $7 billion in assets under management. Out of the $20 million, Rajaratnam alone made $12.7 million in illegal profits for Galleon.— PTI

C’wealth Games offer business opportunity to India
Tribune News Service

New Delhi, November 6
The enormous potential for the Commonwealth Games 2010 to foster trade links for India came through tellingly at the response to the Commonwealth Business Club India (CBCI) during the reception to the Queen’s Baton Relay Delhi 2010 at Birmingham.

Birmingham City Council Leader Mike Whitby said the city was committed to fostering trade with India.

“The CBCI launch underpins the strong economic relationship between Birmingham and India. We are keen to further establish our strong business links through the Commonwealth Games,” he said, while adding “As a global city with a local heart, we are committed to fostering trade with India and today's event will help build more bridges to deliver that.”

In a message, CBCI chairman and Organising Committee Commonwealth Games 2010 Delhi chairman Suresh Kalmadi, said the Queen’s Baton Relay 2010 would help showcase the immense opportunities India offers the Commonwealth’s business community.

“India and the UK should aim at doubling the level of bilateral trade as well as investment within three to five years,” he said. “It has been our endeavour to create a networking environment for business leaders of the Commonwealth. We want to develop greater awareness of India’s multifaceted tourist attractions and investment opportunities.”

International Trade Fair
Punjab all set to participate
Shivani Bhakoo
Tribune News Service

Ludhiana, November 6
Punjab is all set to display its goods at the International Trade Fair to be held at Pragati Maidan, New Delhi, between November 14-27. The Director, Industries, Punjab, VK Janjua, accompanied with General Manager Industries, Vishav Bandhu, yesterday inspected the goods/products brought by the exhibitors from various districts of the state, which are to be displayed at the Trade Fair.

The exhibitors had gathered with their products at the District Industries Centre (DIC), out of which 29 items were approved by the Director, Industries.

The products, including hosiery items, cycle parts, auto-parts etc, were approved from Ludhiana, while from Amritsar, mink blankets, shawls and other machinery products were approved. The wooden handicraft from Hoshiarpur was appreciated by the team. Besides, handicraft, the district will also exhibit pressure cookers.

The exhibitors from Sangrur came with their herbal products, rice-bran oil and military batches.

Vishav Bandhu said that every year, the exhibitors from all over the state gathered at Ludhiana for getting their products inspected and approved. Only the products approved by the state government will be exhibited at the Trade Fair, famous for its varied culture, not among countrymen, but among foreigners, too. The director also visited the two Integrated Parks, the textile and the Apparel Park.