New Delhi, July 27
Commerce & Industry Minister Anand Sharma said in London on Friday that the Indian government was very clear that there would be no revisiting the issue of foreign direct investments in multi-brand retail.

In a meeting with British Chancellor of the Exchequer George Osborne, Sharma said India was trying to build a wider “political consensus” after which the notification would be issued.

Earlier, speaking on the issue of FDI in retail, he told reporters: “It’ll be our political decision when to notify it. “We can't wait for unanimity, or we’ll wait forever. We have taken a decision, we’re committed to it. We are trying to build a consensus until which it (decision) has been held in abeyance. It will be a political call.”

Sharma and Osborne also jointly addressed CEOs from India and United Kingdom where Osborne assured that UK will continue to provide an open investment climate and asked the Indian government to be more ambitious in retail liberalization.

On the India-European Union deal, Osborne said the United Kingdom remained a strong advocate of the deal and would provide all help for an early conclusion of the deal. Osborne also urged an early and amicable solution to the Vodafone issue.

At a bilateral meeting with British Secretary of State for Business, Innovation & Skills Vince Cable, Sharma raised the issue of difficulties in getting visas which he said is impacting the bilateral trade and investment between the two nations.

He highlighted how the information technology industry, in particular, is getting impacted by such issues as delivery of services is dependent on movement of professionals at short notice.

Sharma also asked the British government to carefully take into account the gains arising to the UK economy from contributions by the highly skilled workers from India. He pointed out that any unreasonable cap would affect the productivity of around 700 Indian companies which provide substantial employment in the UK.

Earlier in April 2012, the British government had stopped the facility of post study work visa to Indian and other non-EU students which till now allowed them to work for two years after completion of their graduate and postgraduate studies.

PTI adds: The decision to allow 51% FDI in multibrand retail was announced in November last year. But its implementation was put on hold after a strong protest from various parties including key UPA ally Trinamool Congress. After that the government has renewed its efforts to forge a consensus on the politically sensitive issue.

As the UPA supporting Samajwadi Party also opposing the decision, the government would find it difficult to implement the decision. Recently, JD-U president Sharad Yadav joined hands with Left and SP in opposing FDI in multibrand retail. 

Mumbai, July 27
ICICI Bank, India's top private lender, posted on Friday a 36.3 per cent jump in quarterly net profit, its strongest growth in more than a year, helped by robust loan growth, high fee income and better asset quality.

ICICI said it made a net profit of Rs 18.15 billion in the fiscal first quarter ended June compared with Rs 13.32 billion a year earlier. Analysts, on average, had expected profit of Rs 17.4 billion, according to Thomson Reuters I/B/E/S.

The strong results vindicate its low-risk strategy, as India's economy slows. The bank was dealt a severe blow by the global financial crisis as its bold bets on consumer loans soured but has subsequently cleaned up its books.

The results also show that private banks are better placed for profit growth in the current environment than government-owned banks, which account for 70 percent of the market in India but whose lending decisions are not always driven by commercial considerations.

State-run Canara Bank missed street estimates in its latest quarterly earnings while no. 2 state lender Punjab National Bank also disappointed with a spurt in bad loans. But smaller private lenders HDFC Bank, Axis Bank and Yes Bank all recently reported strong profit growth. Government-run State Bank of India, the country's no. 1 lender which controls about a quarter of the nation's loans and deposits, is yet to report.

ICICI's net nonperforming loans as percentage of total loans dropped to 0.71% from 1.04%. Net interest income, or the difference of interest earned and interest expended, rose about a third to Rs 31.9 billion.

ICICI shares were up 3.09% at 0700 GMT. — Reuters

New Delhi, July 27
Toughening its position, Moscow has made it clear to New Delhi that Indian investments in oil and gas in Russia could also be affected if the issue concerning Russian telecommunications major Sistema’s telecom investments in India was not resolved satisfactorily.

''We do seek bilateral investment ties between the two counties to flourish and develop. Please understand we welcome India’s investment in Russia, especially in hydrocarbons, oil, fertilizers, diamonds and other areas. There’s a shining example of fruitful cooperation — the Sakhalin 1 project. But, we should keep in mind this is a two-way traffic, like two connecting vessels in chemistry,'' Russian ambassador to India Alexander Kadakin said.

He wondered how successful investments from India could take place in Russia if Russian investors suffered in India without any fault of theirs. ''It takes two to tango, you know. We do want to see India as our investor and we’ve openly announced it.''

He said Russia would not allow the US $3.1 billion Sistema invested in India's telecom venture to be 'thrown into abyss' due to what he called "internal problems" in India.

Referring to regulatory uncertainties following the Supreme Court’s verdict cancelling 122 spectrum licences allotted during former telecom minister A. Raja in 2008, Kadakin said “it was not only a judicial problem but a political one also”.

He said Sistema had acted in strict accordance with all Indian laws and regulations and bought the license for frequencies not claimed by anyone. “The matter has more political than judicial content”, Kadakin added.

Chandigarh, July 27
In a shift from the earlier policy where banks had been reluctant to extend investment credit in agriculture, the country’s top bank, State Bank of India, is going big on extending long-term credit to buy farm machinery and tractors.

SBI has come up with three new initiatives to finance the buying of farm machinery and tractors. Top officials in the bank said that the agriculture gold and new tractor loan schemes have been introduced, under which the farmers can avail investment credit for buying farm machinery and equipment. Even the kisan credit card scheme has been modified and investment credit has been included, besides the short-term crop loans that the farmers could avail by using these cards.

The reason why the bank has been getting aggressive about investment credit in agriculture is that it will help the bank earn more money, than the simple short-term crop loans.

SBI officials said the kisan credit card scheme has been modified and the period for renewal of card has been raised from three to five years. The scale of finance that can be availed using these cards has been enhanced by 40%, which has allowed for the inclusion of investment credit in the loans that can be advanced through these cards. “We’re hopeful the bank will increase advances disbursed through KCC by 10% over last year,” he said.

The major head under which SBI hopes to advance money is the just-launched new tractor loan scheme. The bank has a target to finance 1,200 tractors in the current fiscal and loans to purchase tractors are being given at a 12% interest rate. Any farmer who has a minimum two acres of land (earlier the stipulation was four acres) is eligible to avail of the loan and, on showing good credit repayment for a year, the farmer will also get a 1% interest subvention.

“The farmer can now mortgage any land and not just agriculture land, of the total value of the loan amount to avail this loan. We’re also paying a commission to the tractor dealer and his sales executive for selling each tractor,” the official said.

The official said that even the agriculture gold loan scheme has been doing very well in the Chandigarh circle, comprising Punjab, Haryana, Himachal and Chandigarh. “Farmers can avail short term crop loans and loans to buy agriculture machinery at just 7% (with a 3% interest subvention on timely repayment). “In the past three months, we’ve managed to disburse Rs 150 crore under this product. With these schemes we’re hopeful of achieving our target to advance Rs 1,200 crore as agriculture advance in this region during the current fiscal,” the SBI official added.

Ludhiana, July 27
Duty-free import of Chinese garments and shoes along with other items coming through three border checkposts is giving tough time to the industry and adversely affecting Punjab, Uttar Pradesh and West Bengal in particular. These three checkposts are Nathula (Sikkim), Gunji (Uttarakhand) and Namgiya Shipkila (Himachal Pradesh).

Over 80% of trade between India and China takes place through the Nathula pass while the other two checkposts are also becoming active.

Although the bulk of Sino-Indian trade takes place through the sea route, the volumes through the land route is rising because of duty-free imports.

"Traders with special passes can import readymade garments and shoes from China through these three border points without paying any duty. Nearly 20 items are imported via the land route. These imports do not have any quantitative safeguards. So there’s a possibility that the Indian market may be flooded with cheaper Chinese imports with concentrations in Punjab, Uttarakhand, U.P. and West Bengal because they are very close to the respective points," said P.D. Sharma, president of the Apex Chamber of Commerce & Industry.

Though border trade started more than a decade ago at Namgaya Shipkila and Gunji, it assumed importance after trade resumed from Nathula on July 6, 2006, 44 years after a border conflict closed down the ancient 'Silk Route'.

"The textiles and garments industry in particular has been adversely hit due to the ever rising cheap imports from Bangladesh. India has recently allowed these cheaper imports. Earlier India entered into FTAs with ASEAN countries, which also have also pacts with China. With these arrangements Chinese goods can enter Indian market duty free," added Vikas Kansal, a city garment manufacturer.

"We urge the government to restrict the duty-free trade through the land route to protect the interests of Indian industry”, Sharma added.