B U S I N E S S

Inflation dips to 5-month low in July
New Delhi, August 14
Inflation declined to 5-month low of 5.19% in July on account of reduction in vegetable prices adding to the list of macro indicators that have shown improvement in recent weeks pointing to a gradual revival in the economy.

ATM transactions to cost more from Nov in six cities
Mumbai, August 14
Frequent withdrawal of money from ATMs will become expensive from November, with the Reserve Bank of India imposing a limit of 3 transactions per month from ATMs of other banks and 5 from the same bank in six metropolitan cities.

Exports up 7.33% at $27.72bn in July
New Delhi, August 14
After registering double-digit growth for two consecutive months, India’s exports grew by 7.33% to $27.72 billion in July, while imports rose by 4.25% to $39.95 billion. Trade deficit marginally narrowed down to $12.22 billion during the month under review from $12.49 billion, according to the Ministry of Commerce and Industry’s data.

Appointments of PSBs’ heads under RBI lens
New Delhi, August 14
Close on the heels of Syndicate Bank chairman’s arrest for alleged graft, Finance Minister Arun Jaitley today said the government will deal with PSU lenders sternly and is scrutinising recent appointments of bank heads.

Hero MotoCorp strike
Gurgaon DC steps in, meets industry leaders, unions
Gurgaon, August 14
With labour trouble having stormed the city once again with ongoing strike at Hero Motocorp, the Gurgaon administration has decided to intervene and mediate between the management and workers’ unions of all major industrial units.

Cisco to cut 6,000 jobs
New Delhi, August 14
Networking solutions giant Cisco will lay off up to 6,000 employees globally, including India, after it reported a marginal decline in profit and revenue for the fourth quarter. The reduction, which is about 8% of US-based firm’s global workforce, follows a similar move by the company last year when it announced plans to slash 4,000 jobs.

Inflation dips to 5-month low in July
Improvement in macroeconomic indicators show signs of gradual recovery
Sanjeev Sharma
Tribune News Service

New Delhi, August 14
Inflation declined to 5-month low of 5.19% in July on account of reduction in vegetable prices adding to the list of macro indicators that have shown improvement in recent weeks pointing to a gradual revival in the economy.

Global crude oil prices are coming down, the monsoon has not been a disaster, industrial growth is picking up, corporate deal making has gained traction and stock markets have been buoyant. Though some of the indicators tend to oscillate on a month-on-month basis, there is a degree of optimism that the economic cycle may have turned the corner and higher growth may be on the way.

The Wholesale Price Index based inflation was at 5.43% in June and 5.84% in July last year, according to the data released by government today.

Inflation in the overall food articles basket, which accounts for 14% of the total WPI, stood at 8.43%. It was at 8.14% in June.

Assocham president Rana Kapoor said the prices of primary and food articles remain a worrying area about inflation — both at WPI and CPI level. Deficient rainfall, coupled with inherent weaknesses in supply management need to be addressed, he added.

Ficci president Siddharth Birla said: “While risks on account of monsoon and volatility in crude oil prices have receded for the time being, some degree of ambiguity remains. It needs to be assured that the industrial growth is not stifled and recent momentum seen in IIP numbers is kept pace with”.

There is a pick-up in deal making as corporate India announced merger and acquisition deals worth $6.5 billion in July taking the deal tally for the first seven months of this year to $23.82 billion, according to a Grant Thornton report.

According to the report, the inbound deal activity has more than doubled in terms of value and volume against 2013.

July witnessed 56 deals worth $6.54 billion, a jump of 42.48% over the same month last year, when there were 42 such transactions worth $4.59 billion.

Crisil Research said in a recent report that the performance of industrial growth in the first quarter of financial year 2015 is signalling a gradual recovery. This change in underlying trends is also reflected in the recent surveys on industrial outlook and consumer confidence, conducted by the RBI which is pointing towards a pick-up in consumer and business sentiments, Crisil said.

ZyFin Research’s Business Cycle Indicator (BCI) for July has registered a score of 7.7% as compared to 6.6% in the previous month. This is its highest score since September 2010. The BCI is a measure of economic activity and leads the Index of Industrial Production (IIP) estimates. The current improvement, therefore, suggests growth in IIP in the month of August. The official estimates will be available in October.

ATM transactions to cost more from Nov in six cities

Mumbai, August 14
Frequent withdrawal of money from ATMs will become expensive from November, with the Reserve Bank of India imposing a limit of 3 transactions per month from ATMs of other banks and 5 from the same bank in six metropolitan cities.

A customer will be required to pay a fee of up to Rs 20 for using ATMs beyond the permitted number of transactions in Delhi, Mumbai, Chennai, Bangalore, Kolkata and Hyderabad.

The new guidelines, which were issued in pursuance of a representation made to the central bank by the Indian Banks’ Association, will come into effect from November 1, 2014.

“The number of mandatory free ATM transactions for savings bank account customers at other banks’ ATMs is reduced from the present 5 to 3 transactions per month (inclusive of both financial and non-financial transactions) for transactions done at the ATMs located in six metro centres,” the RBI said.

With regard to own bank Automated Teller Machines (ATMs), RBI said that banks will have to permit at least 5 free transactions per month (both financial and non-financial). — PTI

Exports up 7.33% at $27.72bn in July
Trade deficit narrows down marginally

New Delhi, August 14
After registering double-digit growth for two consecutive months, India’s exports grew by 7.33% to $27.72 billion in July, while imports rose by 4.25% to $39.95 billion. Trade deficit marginally narrowed down to $12.22 billion during the month under review from $12.49 billion, according to the Ministry of Commerce and Industry’s data.

Exports in May and June registered a growth of 12.4% and 10.22%, respectively.

In the April-July period, exports grew by 8.62% to $107.8 billion.

Imports, however, dipped by 3.8% to $153.15 billion during the first four months of this financial year.

Trade deficit during the period (April-July) stood at $45.31 billion.

Oil imports increased 12.75% in July to $14.35 billion. Non-oil imports during the month under review were up by 0.03% to $25.6 billion.

Country’s gold imports declined 26.39% to $1.81 billion in July this year from $2.46 billion in the same month last year. — PTI

Appointments of PSBs’ heads under RBI lens

New Delhi, August 14
Close on the heels of Syndicate Bank chairman’s arrest for alleged graft, Finance Minister Arun Jaitley today said the government will deal with PSU lenders sternly and is scrutinising recent appointments of bank heads.

“Time has come to be strict with PSU banks. I have urged the Cabinet Secretary and the Reserve Bank of India Governor to examine recent appointments in public sector banks,” he told reporters here.

The CBI had recently written to the Finance Ministry alleging “irregularities” in appointments of chiefs of PSU banks, following which Jaitley called for a closer scrutiny of recent appointments.

Syndicate Bank CMD SK Jain was arrested earlier this month for allegedly receiving a bribe of Rs 50 lakh to enhance credit limits of a company.

A panel headed by RBI Governor selects PSU bank chiefs.

Applications are processed by the Cabinet Secretary and placed before the Appointments Committee of Cabinet (ACC) for its final approval.

State-run banks in which CMDs were appointed recently include Canara Bank, Corporation Bank, Bank of India, IDBI Bank, Allahabad Bank and Central Bank of India. — PTI

Hero MotoCorp strike
Gurgaon DC steps in, meets industry leaders, unions
Tribune News Service

Gurgaon, August 14
With labour trouble having stormed the city once again with ongoing strike at Hero Motocorp, the Gurgaon administration has decided to intervene and mediate between the management and workers’ unions of all major industrial units.

Deputy Commissioner Shekhar Vidyarthi today met representatives of the labour unions and the managements of various industrial units. He directed the representatives of managements to deal with labour-related issues under legal framework of rules and said they should follow all procedures before initiating any disciplinary action against any labourer. At the same time, he asked the labour unions to work with honesty and dedication for their employer who has given them an opportunity to earn their livelihood.

He asked the management representatives to intimate Additional Labour Commissioner (NCR) Naresh Narwal before taking any decision related to labourers.

The meeting was attended by representatives of Bajaj Motors, Hilex, Suzuki Motor Cycles, Hero MotoCorp, Bexter India, Munjal Kiriu, Auto Dacour, AG Industries, Track Components, Senior India, Indo Auto Tec, among others.

Two days ago, contract workers at the Hero MotoCorp’s Gurgaon plant began a tool-down strike protesting the shifting of the Parts Distribution Centre to the new Neemrana facility in Rajasthan.

Cisco to cut 6,000 jobs

New Delhi, August 14
Networking solutions giant Cisco will lay off up to 6,000 employees globally, including India, after it reported a marginal decline in profit and revenue for the fourth quarter. The reduction, which is about 8% of US-based firm’s global workforce, follows a similar move by the company last year when it announced plans to slash 4,000 jobs.

Stating that the company must focus on areas of growth to become the number one IT player, Cisco chairman and CEO John Chambers said transforming Cisco requires “making some very tough decisions”.

Cisco expects to record charges of up to $700 million in restructuring charges through fiscal year 2015. — PTI