B U S I N E S S

Industry seeks protection from PM on baseless probes
New Delhi, October 23
Seeking the protection of Prime Minister, industry body Assocham has expressed apprehensions that more industry leaders may come under the scanner of the investigative agencies like CBI “merely on the basis of inferences and perceptions of wrongdoings vitiating the investment climate”.

Infusion of Rs 14,000 cr in public sector banks okayed
New Delhi, October 23
The government has approved infusion of Rs 14,000 crore in public sector banks during financial year 2013-14, through preferential allotment of equity in its favour.

TRAI sticks to cut in base price for spectrum auction
New Delhi, October 23
Despite reservations expressed by the DoT, telecom regulator TRAI today reiterated on its earlier recommendations for a sharp cut in the reserve prices in an upcoming auction for mobile phone spectrum.

corporate results
Hero MotoCorp Q2 net up 9.26%
New Delhi, October 23
Boosted by steady sales growth, the country's largest two-wheeler maker Hero MotoCorp today reported a 9.26% rise in consolidated net profit at Rs 481.41 crore for its second quarter ended September 30.

Industry seeks protection from PM on baseless probes
Says perceptions of wrongdoings vitiating investment climate
Sanjeev Sharma
Tribune News Service

New Delhi, October 23
Seeking the protection of Prime Minister, industry body Assocham has expressed apprehensions that more industry leaders may come under the scanner of the investigative agencies like CBI “merely on the basis of inferences and perceptions of wrongdoings vitiating the investment climate”.

In a letter to Prime Minister Manmohan Singh, the chamber said while it appreciates clearing of the air on the Hindalco case, activism on the part of investigating agencies is harming the overall business climate and image of the well-respected industrialists is being sullied.

The recent filing of an FIR against Hindalco chairman Kumar Mangalam Birla has spooked India Inc and there has been as assessment that instances like these could further hit investor sentiment in the country.

“The country needs your support for restoration of confidence and spirit of enterprise,” the Assocham’s letter to the Prime Minister said.

The chamber has warned that if this environment of distrust continues, the decision-making will get further hampered and big projects recently cleared by the Cabinet Committee on Investment will not take off since they will be stuck again at the implementation stage because of demoralised bureaucracy and a shaken entrepreneur.

Assocham said the CBI cases against well-respected industrialists and former senior bureaucrats are being taken, unfortunately, in this spirit, something we can ill-afford at this point of time when our economy is facing a tremendous loss of investor and consumer confidence.

“We fear that more industrialists could be targets of the CBI probes which in all likelihood would not bring out any substantial evidence of any wrongdoing. But the problem is that the reputation of individual enterprises gets jolted. On the other hand, the overall climate of investment and of doing business in India gets vitiated and is marked by distrust, the bane of any country aspiring to grow”, the letter said.

Warning of a policy paralysis, Assocham said in the midst of an environment of mistrust and unsubstantiated allegations of scams it is observed that the decision-makers in the government would prefer not to take decisions, lest they are hounded by investigative agencies even after their retirement. The situation would become even more precarious in an election year.

Infusion of Rs 14,000 cr in public sector banks okayed
* SBI to get Rs 2,000 cr
* IDBI, Central Bank Rs 1,800 cr each
Tribune News Service

New Delhi, October 23
The government has approved infusion of Rs 14,000 crore in public sector banks during financial year 2013-14, through preferential allotment of equity in its favour. The capital infusion by the government in PSU banks is done with the twin objective of adequately meeting the credit requirement of the productive sectors of economy and to maintain regulatory capital adequacy ratios in public sector banks (PSBs).

The total amount of Rs 14,000 crore will be divided among the public sector banks. While the maximum amount of Rs 2,000 crore will be pumped into the largest bank, State Bank of India, Rs 1,800 crore each will go to IDBI Bank and Central Bank of India as part of the capital infusion plan for the current fiscal.

Among the other banks, PNB will get Rs 500 crore, Oriental Bank of Commerce Rs 150 crore, Punjab and Sind Bank Rs 100 crore while Allahabad Bank will get Rs 400 crore.

"Bigger banks are getting more," Financial Services Secretary Rajiv Takru said here. Besides the capital infusion from the government, public sector banks have the headroom to raise Rs 10,000 crore from the market through rights issue, Qualified Institutional Placement (QIP) or follow-on public offer without diluting existing government stake.

The Finance Ministry said the government as the majority shareholder is committed to keep all PSBs adequately capitalised. Infusion of capital by Government in PSBs is in addition to their internally generated capital to enable the banks to maintain a comfortable level of Tier-I capital.

Takru said other than this, banks board could take decisions on how they want to raise additional equity. “In any case we have made amply clear that they could proportionately tap the outside market, and increase their equity. The banks would be able to generate Rs 10,000 crore," Takru said.

The second round of capital infusion may come in the fourth quarter of the current fiscal depending upon banks' requirements. "We will give them more after judging their performance (based on concessional lending towards home, auto and consumer durables," Takru said.

By the end of third quarter it would be clear how much additional lending banks would require.

TRAI sticks to cut in base price for spectrum auction
Tribune News Service

New Delhi, October 23
Despite reservations expressed by the DoT, telecom regulator TRAI today reiterated on its earlier recommendations for a sharp cut in the reserve prices in an upcoming auction for mobile phone spectrum.

Responding to clarifications sought by the Telecommunications Ministry, the TRAI said the reserve prices for the auction of 1,800 MHz and 900 MHz spectrum would remain unchanged at the level already recommended by the Authority.

Since the recommendations on the reserve price obtained for different LSAs follow, in logical sequence, from the valuation through adoption of different economic methodologies, the Authority did not find any scope to “reconsider” the reserve price, as suggested by the DoT,” it said.

It had recommended last month that the reserve price for spectrum in the 900 MHz band in some key cities be cut by about 60%, and also suggested a 37% cut in the reserve price for spectrum in the 1,800 MHz band.

The Union Cabinet will take a final call on the spectrum price proposals, while a panel of ministers will decide on some other rules for the auction planned for either December or January.

In another blow to the DoT, the TRAI has also said that spectrum trading should continue. The DoT had earlier called for a holistic view by the Government before allowing trading of spectrum.

It was of the view that spectrum trading in the present scenario may not serve the purpose and on the contrary it may have some unintended consequences until a holistic view is taken by the Government.

corporate results
Hero MotoCorp Q2 net up 9.26%

New Delhi, October 23
Boosted by steady sales growth, the country's largest two-wheeler maker Hero MotoCorp today reported a 9.26% rise in consolidated net profit at Rs 481.41 crore for its second quarter ended September 30.

Net sales during Q2, 2013-14 were at Rs 5,696.46 crore, as against Rs 5,151.18 crore, up 10.58%, over the year-ago period.

In terms of unit volume, the company said its sales during the quarter grew by 6.26% to 14,16,276 units as against 13,32,805 units in the year-ago period.

Total turnover during the first half of this fiscal stood at Rs 11,886 crore, as against Rs11,435 crore in the same period of 2012-13 fiscal.

ACC's profit halves to Rs 119 cr

Lower realisations on the back of sluggish market conditions halved cement-maker ACC Ltd's consolidated net profit for the July-September quarter at Rs 118.90 crore.

Sales of the company also fell to Rs 2,508.65 crore during the reporting quarter compared to Rs 2,542.37 crore a year ago.

Jet Airways’ loss jumps eight-fold

Jet Airways today reported a eight-fold jump in losses at Rs 891 crore in the September quarter due to the fall in rupee and poor market conditions coupled with grounding of some of its aircraft.

The company had reported loss of Rs 99.7 crore in the same quarter a year ago.

Net income, however, rose marginally to Rs 4,194.7 crore in the quarter ended September 30, 2013 from Rs 4,137.63 crore a year ago, Jet Airways said. — PTI