New Delhi, October 11
Industrial growth has flattered to deceive as it slowed to 0.6% in August after a better growth of 2.7% in July. The data for Index Industrial Production (IIP) released today points out that industrial recovery remains weak mirroring the sentiment in the economy.

According to data released by the Ministry of Statistics & Programme Implementation, key sectors of industry like manufacturing and mining contracted 0.1% and 0.2%, respectively. Capital goods and consumer durables also showed negative growth and a good show by electricity generation with a growth of 7.2% saved the IIP numbers from more damage.

Bhupali Gursale, an economist, Angel Broking, said the marginal 0.6% growth is a huge disappointment since markets were largely factoring in better numbers owing to the core output data and export growth.

She added that healthy electricity production has supported the index excluding which the performance on a year-on-year basis would be flat. Despite a low base, in the April-August 2013 period, the IIP has reported growth of merely 0.1% as compared to 0.2% in the corresponding period previous year.

The upcoming inflation prints are really the data points to watch out for since they are likely to be the key determinants of monetary policy action going forward, she said.

Industry body Assocham said estimates of industrial production for the month of August 2013 aptly mirrored the ground realities. The signs of industrial activity witnessed in July have gone faint now as they were mostly cyclical.

DS Rawat, Secretary-General, Assocham, said the negative growth in critical industrial segments, especially in the festive season, calls for a serious thinking by policy makers.

Assocham said cheap imports of various manufactured goods like electronics, chemicals and steel are resulting in domestic manufacturers to lower capacity utilisation rates, leave alone adding new capacities. The need of the hour is announcing a short-term policy action to address the current sectoral growth hurdles.

Instant Cash The service will be available at 17,500 post offices across the country by November The Department of Posts has signed an agreement with Wall Street Exchange, a company of the Emirates Post Group of the UAE The service will be provided through the International Financial System of Universal Postal Union

New Delhi, October 11
India Post, Department of Posts, has signed an agreement with Wall Street Exchange (a company of the Emirates Post Group of the UAE) for launching an International Electronic Money Transfer service through ‘Instant Cash’ product of the Emirates Post Group.

The service was launched here earlier this week by P. Gopinath, Secretary, Department of Posts, by receiving the first payment from the UAE at a function organised here.

The service will be rolled out nationally in a phased manner and will be made available at approximately 17,500 post offices across the country by next month.

The service will be provided through the International Financial System (IFS) of Universal Postal Union.

This tie-up offers the Indian diaspora worldwide - especially in the Gulf region - a safe, secure and reliable money transfer service for their families back home. The service has its own significance going by the fact that globally, India is the largest recipient of remittances with over $70 billion annually, half of which come from the Gulf.

‘Instant Cash’ is a wholly owned subsidiary of the Emirates Post Group, and its services are available in 59 countries through more than 60,000 locations. They provide instant money transfer service so that the money is available to the customers within minutes of completing the transaction.

As per the salient features of the service, the recipients will be able to receive their payment at any of the identified 17,500 post offices by producing the unique transaction number along with their identity and KYC documents and the money will be available for payment immediately.

India Post is the largest postal network in the world and has completed 158 years of existence. It boasts of a network of 1.55 lakh post offices in the country, of which more than 1.39 lakh are in the rural area.

Besides mail, it also provides various financial services like small savings instruments under Post Office Savings Bank and Money Remittance, both domestic and international.

Bangalore, October 11
Infosys today reported lower-than-expected 1.6% rise in September quarter net profit, but raised the low-end of its sales forecast for the full fiscal.

Consolidated net profit rose 1.6% to Rs 2,407 crore in July-September this fiscal from Rs 2,396 crore a year ago on a charge related to visa use in the US, Infosys said.

The company has declared a whopping 400% interim dividend to its investors.

The company raised the lower-end of its revenue forecast for the 2013-14 fiscal to 9-10% from previously projected 6-10%. It also revised its rupee revenue guidance upwards to 21-22% from 13-17% earlier for the same period.

Shares of Infosys jumped 7.54% to Rs 3,360, its 52-week high on the BSE.

Infosys CEO SD Shibulal said: The growth in second quarter was broad-based and the net client additions (37) was among the highest in the company's history, which included five of the Fortune 500 companies."

In dollar terms, however, the NYSE-listed firm's profits fell 11.1% to $383 million in September quarter of this fiscal from $431 million in the year-ago period. Its revenues rose by 15% to $2.07 billion from $1.80 billion during the review period.

New Delhi, October 11
Pakistan High Commissioner Salman Bashir while addressing a meeting of the India-Pakistan Joint Business Forum today said Pakistan is committed to seeking an improvement of relations with India, as emphatically underscored by Prime Minister Nawaz Sharif.

He said the Joint Business Forum should steer the process for achieving “breakthrough” in Pakistan-India economic relations by identifying opportunities, impediments and prescribing solutions.

He said economic and trade cooperation has to be mutually beneficial and on equitable terms. “The private sector should also play a role in positively influencing political and public opinion and in suggesting a pragmatic course for unlocking the collective potential for development”, he added. He also emphasised the importance of resumption of dialogue process.

New Delhi, October 11
Economic slowdown around the world has had its effect on the PC market as well with the worldwide shipments totaling 80.3 million units in the third quarter of 2013, an 8.6% decline from the same period last year.

According to preliminary results given out by research firm by Gartner, this marks the sixth consecutive quarter of declining worldwide shipments.

"The Q3 is often referred to as the 'back-to-school' quarter for PC sales in North America and Europe, and sales this quarter dropped to their lowest volume since 2008," said Mikako Kitagawa, principal analyst at Gartner.

"Consumers' shift from PCs to tablets for daily content consumption continued to decrease the installed base of PCs both in mature and emerging markets. A greater availability of inexpensive Android tablets attracted first-time consumers in emerging markets, and as supplementary devices in mature markets."

Gartner said, in Asia and Pacific region, PC shipments were at 28.1 million units in the third quarter of 2013, an 11.2% decline from the third quarter of 2012. The region was hampered by the currency volatilities, especially in India and Indonesia, where currencies plunged to record lows.

HP and Lenovo have been virtually neck and neck for the top global position in the PC market. Lenovo took the lead, as it did last quarter, but the upcoming holiday sales season will be a key battlefield for both companies. Lenovo accounted for 17.6% of global PC shipments in the third quarter, and HP had 17.1% of shipments, according to preliminary results.

Mumbai, October 11
The RBI has further relaxed foreign borrowing norms for banks under the recently opened swap window by allowing them to raise funds through their head offices and correspondents besides overseas branches. Until now, the window was limited to overseas branches of banks only.

Authorised dealer category-I banks may borrow funds in foreign currency from their head office, overseas branches and correspondents or any other entity as permitted by the RBI and avail of the this window to raise up to 100 per cent of their unimpaired tier I capital or $10 million whichever is higher, the RBI said in a notification, amending the regulations issued on September 26.

The central bank said the move is aimed at providing greater flexibility to banks in accessing overseas funds.

So far, according to dealers, the banks have raised more than $1 billion through this window, including $255 million raised by Yes Bank.

The RBI has also allowed banks to attract money from NRIs through a special swap window under which the RBI would compensate them up to 3.5 per cent of their cost differential. — PTI

New norms Banks have been allowed to raise funds through their head offices and correspondents besides overseas branches Until now, the window was limited to overseas branches of banks only Category-I banks can borrow funds to raise up to 100% of their unimpaired tier I capital or $10 m whichever is higher So far, the banks have raised more than $1 bn through this window, including $255 m raised by Yes Bank

New Delhi, October 11
Reliance Industries’ chairman Mukesh Ambani has moved a step closer to achieving his dream project of owning a full-fledged telecom company with the Telecom Ministry approving a new licence for the country’s only pan-India 4G spectrum holder Reliance Jio Infocomm Limited.

With the Ministry of Telecom issuing a Letter of Intent (LoI) to Reliance Jio Infocomm for a unified licence, the company has been asked to deposit Rs 1,673 crore as entry fee.

Under the NTP 2012, the unified licence (UL) will allow Reliance Jio, which has been an Internet service provider, to offer voice services as well.

Reliance Jio had earlier applied for a licence to provide voice services over Internet protocol.

The company will also have to deposit a performance bank guarantee of Rs 220 crore and financial bank guarantee of Rs 44 crore for procuring the licence.

RIL, through its acquisition of Infotel Broadband in 2010, holds a pan-India block of 20 MHz spectrum in the 2.3 GHz band, popularly known as the 4G band. The company is currently testing voice over LTE technology in this band.

BRIEFLY

Re at two-month high of 61.07/$
Mumbai: The rupee gained for the second day, adding 32 paise to close at a fresh two-month high of 61.07 against the dollar amid a rise in local equities and sustained capital inflows. A weak dollar overseas and dollar sales by exporters also supported the rupee. — PTI

Nokia launches Lumia 1020
Chennai: Nokia on Friday launched its high-end Lumia 1020 equipped with a 41 mega pixel camera, targeted at shutterbugs. The Windows-based phone is priced at Rs 49,999, Nokia India Director (South) TS Sridhar said unveiling the phone. — PTI

Corporation Bank cuts lending rates
New Delhi: Corporation Bank on Friday reduced interest rates on home, auto and consumer durables loans by up to 1.75% to cash in on the festival season demand. The bank cut lending rate on home loans by 0.50%, while the reduction in rates for auto loans is 1%. The cut in lending rate for consumer durables loans of up to Rs 5 lakh is 1.75%. — PTI

IIFCL to raise up to Rs 2,500 crore
New Delhi: India Infrastructure Finance Company Ltd (IIFCL) said on Friday it proposes to raise up to Rs 2,500 crore through public issue of tax-free bonds. The first tranche of bonds of Rs 500 crore, with an option to retain over-subscription up to Rs 2,000 crore aggregating to Rs 2,500 crore, is on first-come, first-served basis and was launched on October 3, IIFCL executive director Harsh Kumar Bhanwala said. — PTI