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Rupee depreciation
SKS Microfinance slashes 1,200 jobs
Cipla breached patent rights by
cutting price of cancer drug: Bayer
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KF no more UB Holdings’ arm
Suzuki eyes 8% market share
RIL invests over Rs 1,200 crore in banking stocks
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Rupee depreciation
Mumbai, May 10 Today's move, which came after the rupee hit a record closing low of 53.82/83 to dollar yesterday, led to a 94 paise rise in the value of domestic currency in the early trade. In a notification issued today, RBI said 50 per cent of the balances in the Exchange Earner’s Foreign Currency (EEFC) account should be converted to rupee balances within a fortnight. Till now, exporters were allowed to keep their entire foreign exchange earnings in the EEFC account. Reports said the measure would soon allow India's foreign exchange reserves to swell by $2.5 billion as the amount outstanding in the EEFC account amounted to $5 billion. The central bank has also brought in diamond merchants and dealers in precious stones who have another $2 billion in the EEFC account thus adding another billion dollars into its kitty. The measure helped shore up the rupee which rose to Rs 52.95 against the dollar in the morning hours of trade. The apex bank also directed EEFC account holders not to purchase foreign exchange until they have used up all the funds available in their accounts. Exporters with significant forex holdings are known to speculate in the currency markets and the central bank is cracking down on this, say analysts. Besides, the central bank has also fixed limit for intra-day trading of foreign currency by banks. However, exporters criticised RBI's move stating that this will impact the fast dwindling of export margins. "Conversions charges for foreign exchange will also be on the increase impacting fast dwindling of export margins," said FIEO President M Rafeeque Ahmed.
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SKS Microfinance slashes 1,200 jobs
Mumbai, May 10 SKS' business in Andhra Pradesh, which was a microfinance hub earlier, has been hit after the state government imposed a set of restrictive laws in October 2010 curtailing microfinance activity. The move scared away many sector investors and prompted some small to mid-sized lenders to the poor to shut shop. SKS, which employs 3,400 people in Andhra Pradesh, will cut 1,200 jobs, the company said in a statement, adding that it has decided to close 78 of the 180 branches it operates in the state. The lender said it was not planning to close its business in Andhra Pradesh, where its loan portfolio shrunk to Rs 236 crore in the March quarter from Rs 1,311 crore a year ago as it was forced to write off some credit. "The microfinance business in Andhra Pradesh has come to a standstill," MR Rao, chief executive officer of SKS, said in the statement, adding that its business in the state would remain "cash neutral" due to the prevailing market conditions. SKS' loss in the January-March quarter more than quadrupled to Rs 330 crore, reflecting the sliding fortunes of the country's beleaguered microfinance sector. It has been posting losses for the last six quarters. The company, however, said on Thursday it was not facing any liquidity or solvency issues and that it had healthy cash and bank balances. SKS has been beset with slowing business and a boardroom struggle that has sent its stock plummeting after a successful initial public offering in 2010 in which it raised $358 million. It saw the exit of its founder Vikram Akula in November 2011. Shares in SKS, which the market values at $122 million, fell 0.1 per cent on Thursday to Rs 88.60, while the BSE Sensex dropped 0.4 per cent. The stock is down 92 per cent since its market debut.
— Reuters |
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Cipla breached patent rights by
cutting price of cancer drug: Bayer
Berlin, May 10 Bayer Pharma has not given its consent to Cipla to launch its generic Sorafenib (sold under the brand name
Nexavar) and the company’s decision to cut the price of the life-extending kidney and liver cancer drug "is a clear patent infringement," a Bayer spokesperson said. Bayer holds the patent for Nexavar till 2020 and it will "vigorously defend its patent within the available legal framework," the spokesperson
said. Cipla had slashed the prices by up to 76 per cent of its generic drugs, used in treating cancers of brain, lung and kidney. The price of ‘Soranib’ used for treating kidney cancer was cut by 76 per cent to Rs 1,710 "for a month's therapy", from Rs 6,990, Cipla had said in a statement. The Delhi High Court is already dealing with a patent infringement suit filed by Bayer against the Indian company on March 15, 2010, in response to a decision of the Drug Controller General of India
(DCGI) to grant Cipla marketing authorisation for a generic version of
Nexavar. The next hearing to decide the course of the proceedings is scheduled for August 14, 2012, the spokesperson said. Bayer also confirmed that it has launched a legal challenge to the compulsory licence issued by India in March this year to domestic drugmaker Natco Pharma to manufacture and sell a low-cost generic copy
of Nexavar. An appeal against the decision of the Controller General of Patents, Designs and Trademarks to grant a compulsory licence for Nexavar was filed with the Intellectual Property Appellate Board
(IPAB) on May 4, it said. — PTI |
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India to grow at 7.5%, says UN report
New Delhi, May 10 "The Indian economy’s strong fundamentals, namely high saving and investment rates and rapidly expanding labour force and middle class will ensure a steady economic performance... We expect it to expand by about 7.5 per cent in 2012-13," UNESCAP chief economist Nagesh Kumar said. The growth estimate in the current fiscal is higher than the estimated 6.9% growth in the last fiscal year. The Indian government has projected the economy to expand by 7.6 per cent in the current fiscal. The UNESCAP report, however, said weaknesses of major developed economies pose a major threat to the growth in the Asia-Pacific region, which could come down to 6.5 per cent in 2012, from 7 per cent in 2011. "The higher cost of capital and reduced demand for regional export, combined with loose monetary policies and trade protection measures of some advanced economies, contributes to this slowing of Asia-Pacific growth in 2012," United Nations Under-Secretary-General Noeleen Heyzer said. She said the Asia-Pacific economies should try to maintain a growth-inflation balance, cope with capital flows and exchange rate volatility and create jobs to achieve high growth. As regards India, the UN report said there are indications the economy is turning around as core sectors, including manufacturing, show signs of recovery. In 2011-12 fiscal, the economy faced a twin shock of global slowdown and impact of tight monetary policy, it said.
— PTI |
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KF no more UB Holdings’ arm
New Delhi, May 10 Announcing its financial results for the fourth quarter ended March 31, 2012, which saw its net profit plunging sharply by over 83 per cent to Rs 2.10 crore, UB Holdings said Kingfisher ceased to be a subsidiary as on February 18, 2012, after the carrier alloted shares against optionally convertible debentures to certain entities. Noting that it has given significant guarantees on behalf of its subsidiaries and associate companies, UB Holdings said its exposure to Kingfisher Airlines totalled Rs 12,215.18 crore as on March 31, 2012. The company's exposure relating to Kingfisher Airlines is under various accounts, including corporate guarantees to banks. As on December 31, 2011, UB Holdings' stake in Kingfisher stood at 40.1 per cent, but it declined to 34.55 per cent on February 18, 2012 after an increase in the airline's equity base pursuant to issue of shares to some entities in lieu of certain convertible bonds. As per the latest shareholding pattern available with the BSE, UB Holdings' stake in Kingfisher has declined further to 29.39 per cent as on April 24, 2012.
— PTI |
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Exports grow at 3.2%; trade deficit at year’s low
New Delhi, May 10 Exports in April, the first month of the fiscal 2012-13 amounted to $24.5 billion, as per the provisional figures released by Commerce Secretary Rahul Khullar here today. Imports for the month grew by 3.8 per cent to $37.9, also lowest in a year. While the pace of export expansion dropped, the silver line is that there was annual accretion in the net value, as opposed to deceleration in March when the shipments contracted by 5.7 per cent. Though these are early days, Khullar said "If deceleration in imports continues, the BoT pressure will be lower than last year and if it will stay at $13 billion for the remainder period of the year, then we will end the year with $156-160 billion". In 2011-12, the country's trade deficit jumped to $185 billion, highest ever in the history. However, economists read slackening of imports as a sign of a slowdown.
— PTI |
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Suzuki eyes 8% market share
Chandigarh, May 10 "The 100-110 cc motorcycle segment has a tremendous growth potential as it constitutes about 50% of the country’s total motorcycle market. We propose to sell 10,000 units of Hayate per month. The launch of Hayate is an opportunity to address emerging markets in small town clusters as well as semi-urban and rural peripheries," he said. He said the company has decided to ramp up production capacity at Gurgaon from 4.5 lakh units to 5.5 lakh units this year.
— TNS |
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RIL invests over Rs 1,200 crore in banking stocks
Néw Delhi, May 10 These financial investments, estimated to be worth over Rs 1,200 crore, include purchase of shares of six banks - three each from the public and private sectors - and one housing finance major, HDFC Ltd. The banks whose shares Reliance Industries Ltd (RIL) has acquired also include HDFC Bank, SBI, Punjab National Bank and Canara Bank and these have been classified among 'long-term investments' of the country's biggest private sector company in its annual report for the year 2011-12.
— PTI |
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ArcelorMittal’s Q1 net drops sharply
London/New Delhi, May 10 |
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Mumbai, May 10
