Chandigarh, August 22
Banking operations in the northern region were hit badly with transactions worth thousands of crores of rupees delayed because of the two-day nationwide strike called by the United Forum of Bank Unions to oppose banking reforms and outsourcing of noncore bank activities.

Though ATMs and major private sector banks remained operational, providing some relief to customers, it is estimated transactions worth almost Rs 2,600 crore will be delayed in the region because of the two day strike. Daily banking transactions in Punjab, Haryana and Chandigarh are expected to be around Rs 1,300-1,400 crore, through an estimated 200,000 instruments.

Because of the strike, cheques deposited in state-owned banks on Tuesday will not be sent for clearing till Friday. It generally takes two days for a cheque to be credited in any account, and these cheques will finally be credited in the recipient accounts on Monday. It may be noted that there are 7,500 bank branches in this region, and all branches of state-owned banks remained closed on Wednesday.

It is learnt that of the 1300 crore banking transaction taking place in the region daily, transaction worth Rs 500 crore takes place in the tricity, comprising Chandigarh, Panchkula and Mohali. With Chandigarh being the seat of three governments the maximum banking transaction takes place here, through an estimated 50,000 instruments. The other major centre of banking transaction is the industrial town of Ludhiana, where banking transaction worth Rs 500 crore takes place daily, through 45,000 cheques.

But, because of the strike , cheques of all state-run banks participating in the strike will not be sent for clearing for two days. Only the cheques deposited in private banks were affected today, as the RBI had held a contingency clearing session for these banks. Retail customers were as not much affected as they used Net banking, ATMs or transacted through their accounts in private banks.

It may be noted most banks had issued public notices urging customers to complete their transactions before the strike to avoid inconvenience. Banks had also asked its customers to use ATMs or internet banking during the strike.

New Delhi, August 22
Toronto-based Conquest Vehicles Inc has launched Evade, the company's first unarmoured sports utilty vehicle in India. With prices starting from Rs. 8.5 crore including duties, it is India's costliest.

The new body style, design and aesthetic of Evade includes new headlights and tail lights sleekly wrapping around the sides of the vehicle, narrower fender flares, a redesigned grille, hood scoop, the addition of a third tandem sunroof and a wider backdoor to accommodate Evade’s wider body frame to allow for exit/entry of executive security though the rear of the vehicle.

The car's luxurious interior cabin space will provide over 400 cubic feet and will carefully blend military inspired design cues with elegant and rich finishes.

“We wanted Evade to set a new standard for our company in terms of pushing the boundaries from engineering to design to incorporating new user experiences without compromising the integrity of some of the key highlight design features offered by our armored Knight XV. The result speaks for itself in terms of the final product and we couldn't be happier,” said William Maizlin, president of Conquest Vehicles.

The vehicle is offered in 4x4, and is available with either a gasoline or diesel engine. Evade will also come equipped with FLIR night vision camera systems in the front and rear of the vehicle. — Agencies

New Delhi, August 22
The finance ministry has approved increase in the foreign direct investment limit in the insurance sector to 49%. The nod marks a beginning in raising the FDI limit in insurance from the current limit of 26% that has been a strong demand of many foreign insurance companies.

This is a preliminary stage in the exercise as now the ministry will be preparing a cabinet note and the draft note will be circulated to various ministries for their comments.

Since the consultation exercise is just beginning, it remains to be seen what will be the response of the UPA allies like Trinamool Congress once the matter comes before the cabinet. The party has been constantly opposed to liberalization in the insurance and financial sector. Thereafter, the decision will have to go to Parliament for approval, where important financial sector bills like PFRDA Bill have been stuck due to lack of consensus. The Insurance Amendment Bill had been earlier put on hold by the cabinet as there was no consensus.

The demand to hike the insurance FDI cap has been made vociferously over the years as the sector is capital intensive and requires lot of investments. A decision on raising the cap will allow billions of dollars to come into the country and also improve foreign investor sentiment.

With the majority of 74% being held by the Indian partner, infusion of capital becomes an issue as this is a long gestation business and returns take a long time to come. Even now it is estimated that various financial instruments are in play so that more funding can come in from the foreign partner without disturbing the 26% cap.

It has been estimated that many of the private sector insurance firms may not be in good financial health as penetration of the insurance sector has not grown as was estimated given the country’s huge population. 

New Delhi, August 22
Gold prices are just five rupees away from all-time record as rates rose on Wednesday by Rs 235 to Rs 30,745 per 10 grams on brisk buying by stockists today ahead of the busy marriage season amid a surge in global markets.

The price rose by Rs 235 in the national capital. Gold prices in Mumbai increased by Rs 180 to Rs 30,420, in Kolkata the rates rose by Rs 240 to Rs 30,725 and the prices of the precious metal inched up by Rs 85 to Rs 30,415 in Chennai.

Gold prices had touched a record of Rs 30,750 per ten grams on June 19 in the national capital.

"There has been sluggish demand for gold in the country because of prevailing high prices. Today's increase in prices would further affect sales ahead of marriage season," Bombay Bullion Association president Prithviraj Kothari said.

According to analysts, the domestic prices rose close to record level today following global market where gold remained bullish on hopes that the European Central Bank would take steps to contain region's debt crisis. — PTI

Mumbai, August 22
The Supreme Court will hear final arguments from September 11 in a key patent dispute between Swiss drugmaker Novartis and India's patent office, a case that could curb India's global position as a supplier of cut-price generic medicines.

The hearing, which is expected to last for at least two months, had been scheduled to being on Wednesday.

Novartis appealed to the Supreme Court after its cancer medicine Glivec was refused a patent on the grounds the drug is not a new molecule but an amended version of a known compound. Novartis has challenged this clause of Indian Patents Act.

The case has further built tensions between the Big Pharma and India, following a decision by the patent office in March to strip Germany's Bayer AG of its exclusive right to sell another costly cancer drug, Nexavar.

Western firms see huge potential in India's rapidly growing economy but are concerned over safety of intellectual property.

The case is of immense importance to Novartis as it needs certainty of laws if further investments are to be planned. — Reuters

New Delhi, August 22
The Vedanta Group may shell out Rs 21,635 crore, up to 25% more than planned earlier, for buying the government's remaining stakes in Hindustan Zinc and Balco as its previous offers have not been accepted so far.

Vedanta has called a shareholders meet on August 28 in London, alongside its annual general meeting, to seek nod for the sweetening of its offers for acquiring the remaining government stakes in the two companiess.

A Vedanta spokesperson did not respond to the queries.

If it goes through, this deal alone could meet over 72% of the government's disinvestment target of Rs 30,000 crore for this year.

Vedanta had acquired 51% stake in Balco in 2001 and 64.9% stake in Hindustan Zinc Ltd (HZL) in 2002-2003. The group, in January, had offered Rs 15,493 crore for buying 29.5% in HZL and Rs 1,782 crore for 49% residual holding in Balco.

After shareholders’ approval, the company board would have the powers to raise the offer price up to Rs 18,606.10 crore ($3.378 billion) for Hindustan Zinc, and up to Rs 3,028.78 crore ($550 million) for Balco. — PTI

New Delhi, August 22
Foreign direct investments in multibrand retail without adequate safeguards might lead to widespread displacement and poor treatment of Indian workers in logistics, agriculture and manufacturing, the government today cited a global report on Wal-Mart as having said.

Minister of state for commerce & industry Jyotiraditya Scindia told the Rajya Sabha in a written reply that Switzerland-based UNI Global Union had presented a paper on 'Wal-Mart's Global Track Record and the implication for FDI in multi-brand retail'.

"The paper dwells on the business practices of Wal-Mart in some countries and concludes that without adequate safeguards put in place, FDI in multibrand retail will lead to widespread displacement and poor treatment of Indian workers in retail, logistics, agriculture and manufacturing," he said.

US-based Wal-Mart, the world's largest retailer, has already established its presence in the Indian market through a wholesale cash and carry stores. It is among several other global chains waiting for implementation of the government decision to permit 51% FDI in multibrand retail.

The cabinet’s decision of November 24, 2011 could not be implemented in the face of strong opposition from UPA ally Trinamool Congress and several state governments.

Scindia also said that 11 states and union territories have conveyed their support to the Centre for opening the sector to foreign investment.

In an another reply, Scindia said that a writ petition has been filed by Vandana Shiva, an NGO activist, in the Delhi High Court alleging that Bharti Wal-Mart and Bharti Retail are directly and indirectly carrying out retail trading in multi-brand in violation of the FDI policy. — PTI

New Delhi, August 22
Indian coal imports are expected to rise in the financial year through March 2013 as more end-users turn overseas, prompted by a narrowing gap between the domestic and international prices of thermal coal.

Excess supply has hammered international thermal coal prices in recent months, with top exporter Indonesia cutting its output forecast to around 360 million tonnes from 390 million to 400 million for 2012.

Based on the current global supply and demand picture, end-users expect thermal coal prices to remain well below $100 a tonne for the next 10 to 12 months.

"International thermal coal prices have almost hit the bottom," said Vinod K. Singh, adviser to global chemical and textile company GHCL, which is also a leading producer of soda ash.

Coal of the grade 6,000 kcal/kg on a Net As Received basis now costs $88 to $89 a tonne free-on-board (FOB), for example, Singh said. "We do not expect it to go down any further."

India's coal supply is expected to fall short of demand by 192 million tonnes in the fiscal year to March 2013, a coal ministry official said.

Coal demand in India, which has the world's fifth-largest coal reserves and produces the most after China and the United States, is seen at around 772 million tonnes against an expected supply of about 580 million in the financial year to March 2013.

"More and more consumers are looking at imports from mainly Indonesia and Mozambique to fulfil at least 50% to 60% of their thermal coal demand," said V.R. Sharma, chief executive and deputy MD of the steel business at Jindal Steel & Power Ltd. "The balance 40% to 50% they source from India”. — Reuters