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Gold demand falls 26% in January-March quarter
Biz
talk
VW plans engine assembly
in India
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Bank unions issue strike call on May 23
M&S plans 100 stores in India by 2016
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Gold demand falls 26% in January-March quarter
New Delhi, May 20 In value terms, gold demand witnessed a fall of 33% to Rs 48,853 crore during the first quarter of 2014, compared to Rs 73,183.6 crore in Q1, 2013. Investment in bars and coins fell particularly in a noticeable manner by 54% to 45 tonne. Factors, including duty and restrictions on gold imports, coupled with restrictions on the free movement of cash and other assets, such as gold in the run-up to the election, had the effect of dampening down genuine purchases of gold using cash. The total jewellery demand was down 9% at 145.6 tonne compared to 159.5 tonne in Q1 of 2013. In value terms, jewellery demand saw a fall of 18% at Rs 37,377.8 crore, from Rs 45,331.2 crore in Q1 2013. In value terms, jewellery demand saw a fall of 18% at Rs 37,377.8 crore, from Rs 45,331.2 crore in Q1 2013. Total gold recycled went up marginally in Q1 2014 at 21.3 tonne, from 21 tonne in Q1 2013. Total investment demand for Q1 2014 was down 54% at 44.7 tonne from 98 tonne in the same quarter last year. Dwindling demand
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Housing finance still at nascent stage, says L&T Finance
Holdings
N Sivaraman President, L&T Finance Holdings talks to Sanjeev Sharma
Q: What has been the performance of L&T Finance Holdings in retail segment and infrastructure finance? A: Our overall lending asset book comprises mid market finance (22%), retail finance (34%) and wholesale or infra finance (44%). Our group’s focus is around the consumer-oriented segments or what we call B2C (retail) segments. Our disbursements or the portfolio around the B2C segment comprising of housing, two-wheelers, cars, tractors and microfinance is doing well for the past 5-6 quarters. It has increased by 11% in FY14 vis-ŕ-vis FY13. In infrastructure finance, our focus continues to be on operational projects and high quality, larger-ticket relationships. We disbursed Rs 6,800 crore to different infra projects in various segments whereas our loans and advances stood at Rs 17,600 crore as on March 31, 2014. Q: What is the status of your application for bank licence and future plans? A: We continue to maintain our ambition or the desire to become a bank. As we wait for the regulatory situation to evolve on this, our focus will be to further expand, grow in terms of geography, further increase the offerings, while keeping the operating cost under control so that we are able to achieve better returns as we wait to become a bank. In addition to this, we would definitely continue our efforts to diversify the sources of funding for our businesses with more retail offering being a part of our liability book too. Q: What are your expectations from the Narendra Modi government? A: Today our economy faces challenges such as delay in projects sanctioning, inadequate government funding and diminishing projects in the infrastructure and mining sectors. Corporates are also facing liquidity crunch and their funds have remained locked up causing failure in repayment of loans. The new government should bring in stability and only then these problems will be solved. Development depends on how fast you take decisions, hence it’s important to avoid delays and take immediate and firm decisions. Only a strong government can fill this gap and stabilise the economy. Q: What is the company’s strategy for growth? A: We believe there is a huge opportunity in the retail segment. Rural demand has continued to be strong and can be supported with a good monsoon. The second is the infrastructure finance segment. The desired capital spend is about a trillion dollars in the next five years. Hence, it is fairly large opportunity to provide credit to this segment. Q: What is your outlook on the infrastructure sector? A: In the infrastructure sector, especially in thermal power, we continue to see issues both on the demand as well as from the fuel availability side. Electricity boards have their own issues and the overall economic environment has not promoted consumption, so consequently there is some stress continuing to remain even in the operational projects in the segment. The good piece is that we are seeing investment interest in the segment. Q: How do you view the housing finance space? A: The industry is still at a nascent stage in terms of penetration as compared to other markets, such as South East Asia and the US markets. The Indian housing loan market is still roughly at about 6.5% to 7% of the total GDP. Hence, the penetration is still relatively shallow, which makes the opportunity quite huge.
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VW plans engine assembly in India
New Delhi, May 20 To start with, the group is considering the assembly of certain engines with certain key components localised in India, he added. "We are close to a decision and we will announce as soon as we make this decision," Kodumudi said. The localisation programme is part of the company's planned 100 million euro investments for India to expand business, including launching of sedan and SUV in the compact segment and a hatchback. Kodumudi said: "Localisation is one of the prime targets for us during our current consolidation phase as it helps us in reducing our costs and improving cost competitiveness." — PTI
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Business confidence improves; up 3.8% in Apr
New Delhi, May 20 Out of the four components of
BCI, only investment climate indicator declined in April whereas the other three indicators reflecting expectations of overall economic growth, financial position of the firms and capacity utilisation improved. The Political Confidence Index
(PCI) shows improvement from 112.9 points in January 2014 to 136.6 points in April 2014. All eight components of the PCI reflect greater optimism now. According to
NCAER, the current survey was conducted just ahead of the Lok Sabha elections in April 2014. The expectations of a new electoral mandate may have influenced the overall sentiments besides some macroeconomic and sectoral level improvements in the recent quarter. While upturn in growth itself remained elusive, there was positive news on moderating inflation rate, lower current account deficit, rupee rate and stock prices. |
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Bank unions issue strike call on May 23
Mumbai, May 20 Last week, an RBI working committee headed by former Axis Bank chairman P J Nayak had suggested the government to cut its holding in public sector banks to below 50 per cent. "Five national organisations representing 10 lakh bank employees and officers will oppose the Nayak Committee recommendations which are aimed at destroying the character of public sector banking," Maharashtra State Bank Employees' Federation general secretary Vishwas Utagi said. The five bank associations, namely All India Bank Employees' Association (AIBEA), All India Bank Officers' Association (AIBOA), Bank Employees' Federation of India (BEFI), Indian National Bank Employees' Federation (INBEF) and Indian National Bank Officers' Congress (INBOC) plan to hold demonstrations across the country on May 23. — PTI
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In value terms, gold demand witnessed a fall of 33% to Rs 48,853 crore in Q1 of 2014, compared to Rs 73,183.6 crore in Q1, 2013
L&T Finance Holdings is a financial holding company promoted by Larsen & Toubro, one of India’s leading companies. N. Sivaraman, President and Whole-time Director — L&T Finance Holdings, talks about the company’s ambition to become a bank and how a strong government will improve decision making and growth
prospects.