New Delhi, November 12
Consumer inflation crossed the double-digit mark in October at 10.09%, after a breather of seven months on the back of costlier vegetables like tomato, onions and fruits.

While the high inflation data is bad news for the economy, there was some pick up in industrial production data for September with a growth of 2%, although it was below expectations.

Inflation as measured by the consumer price index (CPI) was at 9.84% in September and 9.52% in the previous month. The huge spurt in vegetable prices rose 45.67% in October from a year ago, compared with a 34.93% increase in the previous month is one of the main reasons for the spike. Fruits were dearer by 12.84%.

CPI-based inflation remained in double digits for several months until March this year before it declined to 9.39% in April. Meanwhile, industrial production grew by 2% in September, mainly on account of better performance by power and mining sectors.

Factory output, as measured in terms of Index of Industrial Production (IIP), had contracted by 0.7% in September last year.

Industry said manufacturing will remain subdued in coming months as investment slows around elections. Ficci president Naina Lal Kidwai said, "The positive growth in manufacturing shows some revival in manufacturing activity. However, we expect the growth in manufacturing to be subdued in the coming months also as a result of the current slowdown in domestic demand and lack of investor optimism given the usual uncertainty that builds around elections".

Kidwai said looking at the consistent negative growth in consumer durables, government needs to consider reviving demand to stimulate investments, including reduction of interest rates both for consumers and corporates.

Analysts said both the consumer inflation and industrial growth numbers are not encouraging. Bhupali Gursale, an economist, Angel Broking, said, “Both the industrial output and retail inflation prints are disappointing. The uptick in CPI inflation during October 2013 to 10.1%, a seven-month high, can be attributed to both elevated food as well as core CPI inflation. At the same time, adding to the RBI’s dilemma, IIP growth for September at a modest 2% has come in below market expectations largely owing to negative surprise from the manufacturing sector”.

CII said the modest increase in IIP for the month of September is not reason enough to conclude that industry has turned the corner and is on a path to recovery.

It said while growth in the capital goods sector is still fragile, there are indications of an upturn in the production in intermediate goods. However, the performance of consumer goods — particularly that of consumer durables, continues to be a cause for concern as it indicates very poor demand.

Chandigarh, November 12
High inflation and negative economic sentiment are adversely affecting the performance of banks in Punjab. In the past one year, banks in the state (excluding the cooperative banks) have witnessed a slowdown in the growth of its advances and deposits.

As compared to a growth of 14.17% in the aggregate advances given by banks between September 2011 and September 2012, the growth fell to 13.79% between September 2012 and September 2013. Similarly, the growth in advances has come down from 21.95% between September 2011-12 to 13.58% in September 2012-13. The issue came up for discussion during the State Level Bankers Committee Meeting for Punjab, held here today.

The figures released in the SLBC report today show that in absolute terms, the aggregate deposits in banks increased by Rs 25,655 crore - from Rs 1,85,977 crore in September 2012 to Rs 2,11,632 crore in September 2013. Comparatively, in the corresponding period last year, the deposits had grown from Rs 1,62,890 crore in September 2011 to Rs 1,85,977 crore in September 2013. The fall in deposit growth has been seen in both rural and urban areas, where growth fell from 10.20% (September 2011-12) to 9.90% (2012-13) in rural area banks and from 14.57% to 11.37% (September 2012 and 2013) in banks located in urban areas.

In terms of credit expansion, the figures reveal that the gross credit in the state was Rs 1,21,955 crore in September 2011, Rs 1,48,244 crore in September 2012 and Rs 1,68,387 crore in September 2013. But the growth in bank deposits has fallen in rural (from 26.50% to 18.01%), semi-urban (from 23.92% to 12.87%) as well as urban bank branches (from 18.95% to 12.59%).

The SLBC meeting for Punjab and Haryana was held under the chairmanship of Rakesh Sethi, executive director of Punjab National Bank. Roshan Lal, Principal Secretary, Agriculture, was the chief guest in the Haryana meeting, while Punjab Finance Minister Parminder Singh Dhindsa was the chief guest for Punjab’s meeting. While asking banks to increase the credit inflow, the minister also asked them to set up their head offices in the new financial district being set up at Mohali. Later, Sethi said banks should open one account per family in both urban and rural areas in the wake of government’s direct benefit transfer scheme through Aadhar-enabled cards. 

New Delhi, November 12
Intensifying its drive against firms sitting idle on mines, the Inter-Ministerial Group (IMG) on coal blocks has recommended deallocation of 11 blocks given to companies like JSPL and Monnet Ispat & Energy.

"The IMG has recently recommended deallocation of 11 coal blocks of companies like JSPL and Monnet Ispat & Energy Ltd," a source said.

"In the case of another 19 mines, the IMG has recommended either imposition or deduction of bank guarantee," the source added.

Coal blocks which were recommended for deallocation include Ramchandi Promotional block allotted to JSPL, the source said.

These coal blocks were earlier issued show-cause notices for delaying production.

Last month, the Coal Ministry asked the coal block allottees to make presentation before the IMG on achievement of milestones and reasons for delays.

The firms which were asked to make presentation include, SAIL, NTPC, JSPL, Tata Power and Monnet Ispat and Energy Ltd.

JSPL was asked to make presentation with regard to delaying production from its four coal blocks in Jharkhand, Odisha and Madhya Pradesh. — PTI

Melbourne, November 12
Indian and Australian trade bodies have inked an agreement for acquainting the Indian diaspora with various trade and investment opportunities in India.

The Australia-India Business Council (AIBC) signed an MoU with Overseas Indian Facilitation Centre (OIFC) to foster understanding between the two sides.

Under the MoU, the two organisations would work towards acquainting the Indian diaspora with various trade and investment opportunities in India. — PTI

Gurgaon, November 12
Haryana Chief Minister Bhupinder Singh Hooda has stated that providing better energy at economically viable cost in Haryana was a top priority of the state government.

He was here to attend the inauguration of a hi-tech production facility comprising a “Green Hybrid Box” meant to facilitate optimal and efficient energy production, utilisation and management here today.

“The Haryana Government will soon come out with state solar power policy,” he said.

The production facility is based at the Fairwood Smart Green Company in Gurgaon, which is a joint venture of the Republic of Slovenia and India. The Deputy Prime Minister-cum-Foreign Minister of Slovenia, Karl Erjavec, Ambassador of Slovenia in India Darja Bavdaz-Kuret and senior functionaries of the company also addressed the gathering.

Hooda asserted that the state government was making all possible efforts to make Haryana self-reliant in the field of energy. For this purpose, besides giving importance to efficient use of energy resources, the state government is also giving importance to the development and exploitation of maximum potential for generation of power from renewable sources like small hydro, bio-mass, co-generation and solar energy.

“As of now, about 195.99 MW of electricity is being produced from renewable sources in the state. These include 73.30 MW from small hydro, 107.20 MW from bio-mass, 4.14 MW from waste, 7.8 MW from solar and 2.74 MW from bio-mass gasification,” he pointed out.

Under the promotion of off-grid solar power programme, 30 projects of total 581.0 kw capacity have so far been set up in various public and private sector units and government offices. Also, 550 kw capacity of power plants, each ranging from 5 to 100 kw capacity, are under process. Apart from this, 457 villages, mainly inhabited by members belonging to the Scheduled Castes, have been provided with 9,117 solar street lighting systems. 

New Delhi, November 12
Hindustan Petroleum Corp (HPCL) today reported an 86% drop in second-quarter profit after it received lower fuel subsidy and refining margins dropped. Net profit fell to Rs 318.92 crore in July-September from Rs 2,372.09 crore a year earlier, HPCL Director KV Rao said.

HPCL lost Rs 8,234 crore on selling diesel, domestic cooking gas (LPG) and kerosene at rates set by the government in Q2. Turnover rose 8% to Rs 54,453.74 crore in Q2 from Rs 50,227.71 crore in the corresponding period last year.

Hindalco Q2 net declines 0.5%

Hindalco Industries today reported a 0.5% decline in standalone net profit to Rs 357.11 crore for the July-September quarter as finance costs increased over 6.5 times.

Net sales rose 2.14 per cent to Rs 6,245.56 crore.

Canara Bank profit dips 5.3%

Canara Bank today reported a 5.3 per cent decline in net profit at Rs 625.94 crore for the second quarter ended September 30, 2013.

Total income of the bank rose to Rs 10,427.48 crore during the second quarter, from Rs 9,203.61 crore in the corresponding period of last fiscal, Canara Bank said.

SAIL Q2 net up 117% at Rs 1,180 cr

Steel major SAIL has reported over 2-fold jump in standalone net profit to Rs 1,180.39 crore for the quarter ended September 30, primarily due to an exceptional gain of Rs 1,056 crore for damages from foreign suppliers of coking coal.

SAIL's total income stood at Rs 11,535.51 crore, up 6.66%, during the quarter vis-a-vis Rs 10,815.56 crore of the Q2FY'13.

NFL Q2 net loss at Rs 25.90 cr

National Fertilisers Ltd has posted a net loss of Rs 25.90 crore in the second quarter ended September 30, due to higher expenditure of power and fuel.

Total income during the July-September period increased by 3% to Rs 2006.49 crore from Rs 1,947.68 crore in the same period last year, the company said in a BSE filing.

Central Bank in the red

Central Bank of India has posted a net loss of Rs 1,508.74 crore for the July-September quarter of this 2013-14 fiscal.

The total income of the bank has increased from Rs 5,680.63 crore in the second quarter of last fiscal to Rs 6,236.51 crore in Q2 of 2013-14. — PTI

BRIEFLY

Idea slashes data tariffs
New Delhi: Idea Cellular on Tuesday slashed 2G data tariffs by up to 90% across the country and 3G tariffs by as much as 33% for six months starting November 15. The reduced tariffs will be available to existing and new pre-paid and post-paid users. — PTI

Jet-Etihad deal gets CCI nod
New Delhi: Fair trade regulator Competition Commission of India on Tuesday approved the proposed acquisition of 24% stake in Jet Airways by Etihad Airways. Etihad is acquiring this stake for Rs 2,058 crore in a deal that was announced in April this year. — PTI

Milkha Singh to endorse Emami
New Delhi: Emami Ltd on Tuesday said it has roped in legendary athlete Milkha Singh as brand ambassador, following the recent biopic on his life, for the company's health supplement product Zandu Kesari Jivan. — PTI

Parsvnath to build new township
New Delhi: Parsvnath Developers will invest Rs 1,100 crore over the next four years to develop a 107-acre integrated township on Gurgaon-Sohna road. The firm is eyeing a revenue of 
Rs 2,700 crore over the four-year period. — PTI