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Food inflation back in double digits as veggie prices hit the
roof
IBSA to take up nontariff barriers, investments
Microsoft, Silver Lake working on Yahoo bid
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India’s business aviation sector sets up first-ever interest group
Cell subscriber base crosses 865 m
as over 1.8 m users opt for MNP
HDFC Bank Q2 net up 31.5% at
Rs 1,199.3 crore
SBI requires Rs 7,900 cr to keep Tier I cap at 8%
Punjab sets up Rs 20 crore IT venture fund
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Food inflation back in double digits as veggie prices hit the
roof
New Delhi, October 20 Food inflation, as measured by the wholesale price index (WPI), was at 9.32 per cent in the previous week. Though the rate of price rise in food items, as on October 8, was lower than 15.72 per cent in the corresponding week of 2010, the data shows a disturbing trend. This double-digit inflation comes on top of a very high level of price rise recorded in October last year. The common man had to pay 17.59 per cent more on vegetables year-on-year, during the week ended October 8, while fruits were dearer by 12.39 per cent. Milk went up 10.80 per cent and eggs, meat and fish by 14.10 per cent. The last time that food inflation stood this high was on April 16 when it was recorded at 11.25 per cent. Even pulses and cereals that had remained subdued are catching up becoming expensive by 7.42 per cent and 4.73 per cent, respectively. "I’m concerned (over high food prices)," the PM’s economic advisory council chairman, C Rangarajan, said. Crisil chief economist DK Joshi also found the trend disturbing. "The surge in food inflation is worrying. The numbers show that food prices have not moderated despite a normal Monsoon and good harvest," he said. — PTI |
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‘Inflation expected to ease to 8%’
Describing rising inflation as a matter of concern, chairman of the PM's economic advisory panel C Rangarajan said Thursday the rate of price rise would moderate in the coming months on the back of good monsoon and increased availability of foodgrains. "I believe even if in this particular week it (inflation) has risen, it will come down. I believe that the monsoon has an effect on the availability of foodgrains which you will see in months ahead," he said while addressing the economic editors' conference in New Delhi.
Answering questions on the growth prospects of the economy, Rangarajan said inflation was expected to hover at 8% in fiscal 2011-12, marginally down from its earlier estimate of 8.2%. "The PMEAC had projected a growth rate of 8.2% in July 2011. There are many factors which will require us to adjust it downwards. I expect that the growth rate in the current year will be close to 8%", he added. As regards fiscal deficit, Rangarajan said, it would be a Herculean task for the government to retain it at 4.6% of GDP estimated at the time of presentation of budget for 2011-12. "It could be slightly higher than 4.6%. I think it’s very difficult to talk about the number. It could exceed by a small margin," he added. — PTI |
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IBSA to take up nontariff barriers, investments
Pretoria, October 20 Also, it was decided to hold an annual trilateral meeting of the trade ministers of the three countries to further enhance the intra IBSA trade. India's Commerce & Industry & Textiles Minister Anand Sharma offered to host the first annual trilateral meeting in New Delhi in early March next year. Intra IBSA trade has done well despite the economic slowdown of 2008 and its aftershocks including the prevailing uncertainties in the Eurozone. Trade between the three countries is already close to $20 billion, having in 2009 crossed the target of $15 billion set for 2012. India's trade with Brazil and South Africa accounts for a majority of this trade. At the IBSA summit Prime Minister Manmohan Singh said the trends indicated the target of $25 billion trade by 2015 would be achieved early. Direct air connectivity is expected to give tourism a major boost and the IBSA trade ministers agreed to look at visa related issues so that the process for business visas is made easier. It was also decided to reconcile trade data and devise a common reporting format as well as methods for capturing all the data of trilateral trade including those occurring through third countries. South Africa and India also decided to enter into long term contracts for purchase of raw materials and commodities, and the recently opened office of MMTC in South Africa will work on this proposal. With the process on ratification of the Mercosur- SACU (Southern Africa Customs Union) free trade agreement advancing, and initiation of steps to implement the India Mercosur preferential trade agreement, the decks have now been cleared for making progress on a trilateral FTA involving India, SACU and Mercosur. This pact linking developing countries in the three continents is envisaged as one of the most ambitious free trade areas in the world and will be a symbol of growing South-South cooperation. The three countries will also meet before the World Trade Organization's eighth ministerial conference in Geneva in December to coordinate their position on all issues relating to the WTO negotiations. Investments by Indian companies in South Africa has been growing and has crossed $6.7 billion as they see the market potential of South Africa and made investments in sectors like automobiles, pharmaceuticals, hospitality and IT. Indian investments in South Africa reflect greenfield projects as well as acquisition of existing South African companies. Indian business groups are to establishing a strong manufacturing and assembly base in South Africa that caters not only to the large domestic market but can also serve as a potential base for countries in the SADC region. There is also a growing trend of South African investments in India which includes SAB Miller which has emerged as India's second largest brewer after the UB Group with investments in India exceeded US$ 1 billion.
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Microsoft, Silver Lake working on Yahoo bid
New York, October 20 Under a proposal being discussed, Microsoft would put up several billions of dollars, while additional funding would be sought from the banks and its buyout partners like Silver Lake and Canada Pension Plan Investment Board. Yahoo had rebuffed a US $44.6 billion takeover bid earlier in 2008 from the world's largest software maker Microsoft, which has made a few other failed attempts too in the past to acquire the internet company. "Private-equity firm Silver Lake Partners is working with one of its investors, the Canada Pension Plan Investment Board, and software giant Microsoft Corp to put together a proposal to buy Yahoo Inc," the Wall Street Journal reported, citing an unnamed source. The contribution from Silver Lake and the CPP Investment Board for the proposed buyout would be less than what Microsoft puts in, the report said. As per the proposal being discussed, the buyers would spin off Yahoo's Asia assets after a takeover, WSJ reported. The report said at least nine private equity firms are eyeing Yahoo and its global audience of 700 million monthly visitors to the company's various websites, including Yahoo News, Yahoo Finance and Yahoo Sports. Yahoo's board recently fired Chief Executive Carol Bartz after she failed to increase the company's market share. — PTI
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India’s business aviation sector sets up first-ever interest group
New Delhi, October 20 Announced on Thursday, the Business Aircraft Operators' Association (BAOA)- business aviation's first recognized body comprising - as of now — unorganized fixed wing and rotary wing aviation firms — will provide a "unified voice" for its stakeholders, somewhere on the lines the US-based National Business Aviation Association (NBAA). Despite a much larger number of planes flying in the business sector, in comparison to the commercial sector comprising government and private owned airlines, the segment has so far remained unnoticed. "While the growth in business aviation is almost 12.5%, infrastructure available for the industry has not kept the pace", said Rohit Kapur, president of the newly formed body. Consider this: All commercial airlines, including the state-owned Air India, have around 391 aircraft flying while the business category has 552 planes in the air, a number that BAOA expects to grow to 1,800 by the end of 2020, according to Kapur. The Indian business aviation industry has been projected to become the third largest aviation market in the next decade - almost a threefold growth. "More than 1,000 aircraft will be added over the next ten years. There is an imminent need of a body that will bring the fraternity together for overall industry growth and mutual benefits. BAOA will act as a catalyst to unify cornerstones of this growth and overcome existing challenges the sector faces," Kapur added. The industry is fighting infrastructure and policy framework concerns along with inadequately defined standards of safety, security and infrastructure. There are issues regarding high taxes on import of aircraft and its spares and high aviation turbine fuel (ATF) prices for which BAOC will now engage with ministries like finance and civil aviation as well as state governments. Kapur admits at times some small private companies tend to take shortcuts in the most important aspect of aircraft maintenance, an issue the new association will now nudge its 39 members to address.
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Cell subscriber base crosses 865 m
as over 1.8 m users opt for MNP
New Delhi, October 20 As the number of mobile phone users in the country crossed the 865 million mark at the end of August, details released by the Telecom Regulatory Authority of India (TRAI) said as many as 1,805,900 subscribers had chosen to make use of the mobile number portability (MNP) service and port their number to another service provider at the end of August. The trend of decline in the addition of cellular subscribers, however, continued with the addition of just about seven million subscribers in the month. MNP allows users to switch operators while retaining their mobile numbers. "Mobile number portability requests increased from 1,554,800 subscribers at the end of July 2011 to 1,805,900 subscribers at the end of August 2011," TRAI said while releasing telecom data till end of August. Surprisingly there was a rush for mobile number portability in the month of August itself with as many as 2,512,000 subscribers seeking to make amove to another service provider. Meanwhile, the number of mobile phone subscribers in the country rose to 865.7 million in August with a jump of under one per cent over the previous month. The wireless user base grew 0.86 percent during the month with an addition of 7.34 million subscribers, from 858.37 million in July. However, the total number of telephone subscribers, including landline users, touched 899.78 million at the end of August, a 0.81% growth. Overall teledensity in the country reached 74.96%. According to the data, of the total 865.71 million wireless subscribers only 608.63 million subscribers were active subscribers on the date of peak visitor location register (VLR), a temporary database of the subscribers who have roamed into the particular area, which it serves. Each base station in the network is served by exactly one VLR, hence a subscriber cannot be present in more than one VLR at a time. This also reflects the actual number of mobile phone users in the country. |
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HDFC Bank Q2 net up 31.5% at
Rs 1,199.3 crore
Mumbai, October 20 "Retail business is outpacing corporate lending," executive director Paresh Sukhtankar said, indicating he does not see much change on this front going forward as well. Retail loans were up by over 34% over the year-ago period, while corporate loans were up 25%. Its total credit growth was 25.6% while deposits were up 18%. In the retail segment, commercial vehicle and business banking grew 40% in Q2. — Agencies |
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SBI requires Rs 7,900 cr to keep Tier I cap at 8%
Kolkata, October 20 "The bank needs Rs 7,900 crore for Tier I capital at 8%. Now, the Tier I capital stands at 7.6 per cent," SBI managing director & CFO of SBI Diwakar Gupta said. He added infusion of funds by the government would help the bank in raising Tier I capital. Moody's recently downgraded SBI's standalone rating due to poor Tier I capital ratio and deteriorating asset quality. Speaking to reporters on the sidelines of the CII Banking Colloquium here, Gupta said that unless the government infuses capital by this fiscal, Tier I capital ratio would hover around 7.6% to 7.8%. — PTI |
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Punjab sets up Rs 20 crore IT venture fund
Chandigarh, October 20 Punjab Industries Minister Tikshan Sud said Thursday the Rs 20 crore fund had been set up through state government bodies like Punjab Infotech, Punjab State Industrial Development Corp Ltd and Punjab Financial Corp in association with the Small Industries Development Bank of India (SIDBI). “The fund’s corpus will be raised to Rs 100 crore in two years’ time. Punjab Infotech has tied up with Mumbai-based Subhkam Ventures to assist in the fund management”, Sud added. |
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Food inflation climbed to a six-month high of 10.6 per cent for the week ended October 8, as prices of fruits and vegetables went through the roof, hitting the common man. This is not a good news for borrowers as well, since the data is likely to weigh on Reserve Bank of India''s review of interest rates next week.