SBI reaches out to the unbanked

In what would herald a radical shift from the brick-and-mortar model of banking, State Bank of India (SBI), the country’s largest bank, has decided to hire 15,000 new banking correspondents (BCs) in 2010-11, its chairman OP Bhatt told FE. SBI’s grand plan on BCs is to add thousands of new correspondents to its network every year, a move that would dramatically expand rural banking. The network of BCs would have a direct linkage to sundry social security schemes, Bhatt said. Pilot projects in states like Andhra Pradesh have shown that the BC model can enhance the utility of such schemes. “To make the business correspondents network the most credible and useful link between millions of farmers in rural areas and the bank branches, it will have to be expanded in a big way,” Prime Minister’s Economic Advisory Council chairman C Rangarajan said. SBI’s move is in tune with the Budget decision to provide banking facilities in all domiciles with more than 2,000 people. The prime role of BCs would be to accept deposits and remit money. They would also provide basic financial services like insurance to the half-a-billion low-income rural people who are outside the banking network. Starting with India Post, SBI has roped in organisations with pan-India presence like ITC, Reliance Dairy Foods, Drishtee Foundation and Zero Microfinance & Savings Support Foundation to expand its BC network. According to Bhatt, the bank would also rope in petrol pump operators, rural kirana shops, retired teachers and agents of small saving scheme as BCs. What complements the BC network would be the technology platform being set up. “Apart from opening more branches, we plan to serve the customer better by leveraging all other channels--ATMs, Internet banking, mobile banking…” said Bhatt. The BCs can act as a mini-bank branch with facilities of cash withdrawals and deposits up to Rs 10,000. The BC is connected to a local branch that supervises the functioning of all BCs in the area. SBI has covered more than 50,000 un-banked villages, including in far flung North Eastern, Eastern and Central parts of the country. Currently, the bank spends Rs 115 on each account managed by the BC and the return may be around Rs 3, as the average bank balance of a BC account is estimated to be around Rs 30.

HDIL - Outcome of Board Meeting

Housing Development and Infrastructure Ltd has informed that the Board of Directors of the Company at its meeting held on March 31, 2010, has considered and approved the following matters: 1. To allot 130,00,000 equity shares to the Promoter against convertible warrants issued to him on July 02, 2009. 2. To make Investment in shares of BKC Developers Pvt. Ltd. thereby making it a subsidiary Company. 3. To accept request received from Mr. Kapil Wadhawan and Mr. Dheeraj Wadhawan to derecognize them as promoters of the Company subject to approval of the regulatory authorities.

Petrol, diesel to go dearer from tonight

Petrol and diesel prices will go up by Rs 0.50 a litre from midnight tonight in 13 big cities, including Delhi and Mumbai, where cleaner Euro-IV grade fuel will be supplied from tomorrow, a government official said on Wednesday. Petrol price in Delhi will go up by Rs 0.50 per litre to Rs 47.93 a litre and diesel by Rs 0.26 to Rs 38.10 a litre on account of supply of cleaner Euro-IV fuel, the official said but did not wish to be identified. Thirteen big cities, including Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bangalore, Lucknow, Kanpur, Agra, Surat, Ahmedabad, Pune and Sholapur will move from Euro-III grade fuel to Euro-IV from Thursday. Rates will vary from city to city depending upon local taxes. The rest of the country will switch from Euro-II specification fuel to Euro-III in phases, beginning with Goa from Thursday. Sale of Euro-III grade will be phased over the next 5-6 months. Euro-III petrol will cost Rs 0.26 a litre more and same grade diesel Rs 0.21 per litre, the official said, adding the rates will differ from city to city. Prime Minister Manmohan Singh, who was approached by the Petroleum Ministry for clearance, had yesterday approved of the price hike. Oil companies had invested Rs 40,000 crore in putting up facilities to produce cleaner fuel and the prices have been increased to make up for the cost. This will be the third hike in diesel rates for Delhi in less than a month and the second for petrol. Petrol price was raised by Rs 2.71 and diesel by Rs 2.55 a litre from February 27 as Finance Minister Pranab Mukherjee hiked excise and customs duty on the two fuel. Diesel rates went up by Rs 2.37 on March 23 when the Delhi government raised VAT on the fuel. Euro-IV grade auto fuel prescribes to European emission standards that define acceptable limits for vehicle exhaust emissions for member states of the European Union. It is less polluting since it restricts the presence of sulphur in the fuel: sulphur is present in 50 parts per million (ppm), as opposed to sulphur in 550-350 ppm as sold in earlier. The Euro IV standard specifies a maximum of 50 parts per million of sulphur in petrol and diesel. Euro-III fuel specifications call for a maximum of 350 parts per million of sulphur will be sold in the rest of the country. The official said oil firms could not have absorbed the cost of producing cleaner fuel as they lose about Rs 250 crore per day on selling auto and cooking fuel below cost. Retailers IndianOil, Bharat Petroleum and Hindustan Petroleum currently lose Rs 6 per litre on petrol, Rs 4.06 a litre on diesel, Rs 16.91 per litre on kerosene and Rs 267.36 per 14.2-kg LPG cylinder.

Advani made hate speech on Babri demolition day: ex-PSO

Rae Bareli, Mar 26 (PTI) In a setback to L K Advani in the Babri Masjid demolition case, a senior IPS officer today told a special CBI court here that the BJP leader made provocative speech at Ayodhya on the day the structure was brought down 17 years ago. Rae Bareli, Mar 26 (PTI) In a setback to L K Advani in the Babri Masjid demolition case, a senior IPS officer today told a special CBI court here that the BJP leader made provocative speech at Ayodhya on the day the structure was brought down 17 years ago. Advani then sent Bharti there but she came back after some time, Gupta said. She also said that she saw people carrying tools like shovels and rods. While addressing a gathering Joshi said irrespective of what then Prime Minister P V Narsimha Rao says, the temple will be built there itself. "Let the mosque be built anywhere," he said, according to Gupta. Gupta also told the court that after the domes of the mosque were brought down, Bharti and Rithambara hugged each other and distributed sweets. They also congratulated Advani and BJP leader Murli Manohar Joshi, she said. Gupta, who is currently posted with R&AW in Delhi, had earlier deposed before the CBI, which probed the demolition of the 16th century mosque. She had made a detailed statement on the movement and activities of various Sangh leaders, including Advani, during the incident of December 6, 1992. It formed a key part of the criminal case the CBI filed against Advani, Joshi, Bharti, Katiyar, Ashok Singhal, Giriraj Kishore, Vishnu Hari Dalmiya and Rithambhara in 1993.

Commexes' turnover jumps by 50% during Apr-Feb FY10

The total turnover of 23 commodity exchanges jumped by around 50 per cent to Rs 73,50,974 crore till February 15 in 2009-10, the Forward Markets Commission (FMC) said today. The total turnover of the commodity exchanges was Rs 49,07,310 crore in the same period last fiscal. The maximum turnover was seen in farm items such as guarseed, chana, soyabean and soy oil as well as commodities such as energy and crude oil, the data released by commodity markets regulator FMC showed. Among 23 commodity bourses, the turnover of leading bourse MCX jumped by 41.61 per cent to Rs 60,75,989 crore during the period this fiscal compared to Rs 42,90,537 crore in the same period last year. The business of leading agri-commodity bourse NCDEX increased sharply by 70 per cent to Rs 8,71,478 crore from Rs 5,12,576 crore, while that of NMCE scaled up by four-fold to Rs 2,06,886 crore from Rs 47,753 crore in the review period, the data showed. The new entrant ICEX made business of Rs 1,16,682 crore since the launch of the exchange on November 21, 2009. The turnover of regional exchange National Board of Trade rose sharply to over Rs 27,000 crore so far this fiscal. There are four national and 19 regional exchanges in the country.

Glenmark moves up 4% on USFDA nod for Calcipotriene

Glenmark Pharmaceuticals has gained 4% at Rs 252 after Glenmark Generics received approval from the USFDA for Calcipotriene Ointment. Glenmark Generics Inc, USA (GGI), the United States subsidiary of Glenmark Generics Ltd (GGL), announced they have received final approval from the United States Food and Drug Administration (FDA) for Calcipotriene ointment 0.005%. The stock opened at Rs 245 and touched high of Rs 255. The counter has seen trades of around 410,000 shares so far, as compared to an average 284,000 shares traded daily in last two weeks. Calcipotriene ointment was marketed by Leo Pharmaceuticals as Dovonex ointment from its approval in December 1993 through April 2007, when the product was discontinued due to commercial viability. The brand garnered peak sales of approximately $93 million in the calendar year 2006, according to IMS Health. Leo Pharmaceuticals still markets and distributes a line of Dovonex® products including a cream and a topical solution. Glenmark's approved version of calcipotriene ointment 0.005% is indicated for the treatment of plaque psoriasis in adults.

Bharti hopes to sign deal with Zain in next 10 days

Bharti today said it hopes to sign the $10.7-billion deal to acquire the African assets of Kuwait's telecom firm Zain in the next 10 days. "Hopefully," said Bharti Enterprises Vice Chairman and Managing Director Rajan Bharti Mittal when asked whether the agreement with Zain would be inked in next 8-10 days."Zain board has accepted our offer. Our board has approved it. The exclusivity ended and now we have few days to complete the exercise. Definitive agreements have to be signed," he said.March 25 was the deadline set for exclusivity. He said the due-diligence is almost in the last stage to acquire the African assets of Kuwait-based Zain Telecom and thereafter the process has to follow. Yesterday, Sunil Mittal-led Bharti Airtel had said, "Bharti is now working with Zain towards finalising the definitive agreements which would address all key terms and findings arising out of the due diligence." Bharti Enterprises is the holding company of Bharti Airtel. The deal, once happens, will pave the way for one of the largest telecom cross-border deals and will give Bharti access to 15 African countries at one go. The two businesses combine will have more than 165 million subscribers with total revenue of $13 billion. Bharti has been keen on entering the African market. In the past two years, it has twice attempted a merger with South Africa-based MTN. The efforts, however, did not succeed due to structural issues. Bharti Airtel on March 21 announced tying up of $8.3 billion debt for the proposed acquisition which was over-subscribed with major international banks committing to underwrite the total amount.

12-15% Rise Expected in Prime Property Prices in India

Giving a clear message to the potential real estate buyers on the need to act fast, a research done by leading global property consultancy firm, Knight Frank along with Citi Bank, has forecast that the prime property prices in India is likely to increase by 12-15% in 2010. The Wealth Report 2010 Attitudes Survey, pointed out that over 70% believe that 2010 will be good year to invest in property, with half predicting residential property will be the sector’s top performer. Giving a global view on the performance of prime residential property markets with a focus on the key regions in the Asian Pacific property markets, the survey showcased that the Mumbai and New Delhi realty markets held a significant level of promise for potential investors. Pranab Datta, vice-chairman and MD, Knight Frank India said, ‘‘There are growing prime markets in every city of India. But, South Mumbai and South New Delhi are the markets, which are the highest in terms of prices followed by Bangalore, Chennai and Hyderabad. We anticipate that the prices especially in cities such as Mumbai and Delhi will return to the peak levels of 2008 in this year 2010.’’

NTPC sets up project monitoring centre

National Thermal Power Corporation (NTPC) has informed the stock exchanges that it has set up a project monitoring centre to give a fillip to its large capacity addition programme. This project monitoring centre has the facility of video-wall, which can be used for video conferencing with all projects and allows web based project monitoring with respect to its schedule. All the ongoing projects and all the identified new future projects are connected to the project monitoring centre.

Century Textiles to raise yarn prices on surge in cotton

Diversified Century Textiles and Industries is planning to raise prices of cotton yarn to offset high input costs, a senior official said on Friday. "We will have to increase prices. We are trying to see how much market can absorb," Senior President R K Dalmia told . He did not specify the quantum of the planned increase or a time frame for the hike. "The industry is increasing the prices to absorb the higher cotton price," he said. Current cotton prices are higher by up to 54 percent over same period last year in almost all the varieties, government data showed.

Axis Bank Said to Sell $350 Mn of 5.5-Year 5.25% Bonds

Axis Bank Ltd. sold $350 million of 5.5-year bonds priced to yield 275 basis points more than similar maturity U.S. Treasuries, according to a person familiar with the transaction.

Nissan India, Ashok Leyland Venture to Sell First LCV Mid-2011

Nissan Motor India Ltd. will introduce the first light commercial vehicle in venture with Ashok Leyland Ltd. in the middle of the next year, Kiminobu Tokuyama, managing director and chief executive officer of Nissan’s Indian unit said in New Delhi today.

Natco Pharma up 15% on reports of re-launching Albupax

Natco Pharma is trading 15% higher over its previous day’s close at Rs 151 on reports that the company will re-launch its breast cancer drug, Albupax, in the domestic and global markets. The stock opened at Rs 133 and touched two-year high of Rs 156 in intraday deals and has seen spurt in volume. As many as 2.1 million shares have changed hands on the counter so far, as compared to an average 45,000 shares that were traded in last two weeks on the BSE. As per reports, the Ministry of Health has stayed the suspension of manufacturing license for the drug by the Drug Controller General of India (DCGI). Natco had stopped the production, distribution and marketing of the drug in July 2009 on the instructions of the DCGI’s concerns that the drug might cause liver damage. Albupax is a nano technology based drug and is the generic version of Abraxane which is patented by US-based Abraxis BioScience Inc.

Micro Tech bags $20 mn order from Kuwait firm

Security solutions provider Micro Technologies (India) today said it has bagged an order worth $20 million (about Rs 91 crore) from Kuwait-based Fahad Al-Kulaib to supply security products. Micro Retail, the retail subsidiary of Micro Technologies has entered into an agreement with Fahad Al-Kulaib for a total deal size of $20 million, Micro Technologies (India) said in a filing to the Bombay Stock Exchange. "It is a great pleasure to get associated with a company who has proven track record for the past several years for making innovative products. We will do our utmost to get Micro Technologies products establish in Kuwait and simultaneously market it all over the Gulf and Middle East Countries," Fahad Al-Kulaib General Manager Gomes said. The company would offer products for vehicle, mobile security and tracking, premises security and vessel monitoring system, the filing added. Kuwait-based company would market the company's range of product and carry out direct marketing campaign to expand the business in their domestic and adjoining markets, it said.

SBI may tweak its 8% home loan scheme after Mar 31

Home-loan borrowers may yet have a reason to cheer. The country's largest lender, State Bank of India, has hinted that it may consider retaining its much-talked-about 8 per cent home loan scheme, albeit with slight modifications in the product."Well, I suppose there can be modifications (in the products), which will be in tune with our liquidity position...Normally, we don't kill any product," a top SBI official said here. However, the banking major is yet to formally decide on the extension of the offer whose tenure expires on March 31. Under the scheme, the lender offers home-loans at as cheap an interest rate as 8-8.5 per cent to new customers. SBI had initially launched these products in August 2009 for a limited period of three months but later extended it till March 31, 2010, following a huge customer-demand. The scheme -- My Home Campaign -- offers an 8 per cent fixed interest rate for 5-years for loans up to Rs 5-lakh, with a maximum tenure of 10-years. For loans above Rs 5-lakh and up to Rs 50-lakh, it offers a fixed rate of 8 per cent during the first year and 8.5 per cent during second and third years. Reflecting its popularity in the market, SBI garnered a whopping Rs 25,000-crore, disbursing an average of Rs 2,500-crore per month under the scheme. SBI has a home loan portfolio of around Rs 71,000-crore. SBI was the first to roll-out the dual rate special home-loan schemes or 'teaser' schemes in the market, at a time when credit demand in the domestic market was abysmally low after the global financial turmoil dented confidence and discouraged individuals and corporates to borrow. Most of SBI's competitors, including mortgage lender Housing Development Finance Corporation and ICICI Bank, had followed SBI by launching similar schemes, but later withdrew them, partly owing to the Reserve Bank's disapproval of such products and drying liquidity. "I think it is the best home-loan product in the market. It is a very successful product. The way it helped other sectors to grow like steel and cement and contributed to the overall economic growth is tremendous," the official said.However, the Reserve Bank was not happy with banks offering 'teaser' schemes as it was concerned about the ability of borrowers to service the interest rates when it got back to the normal level after the expiry of the offer period. RBI Deputy Governors, Usha Thorat and K C Chakrabarty, had openly expressed their concerns about the scheme. "Teaser rates by banks is a cause of concern. Banks must ensure that borrowers can service higher rates when rates return to normal," Usha Thorat had said. Chakrabarty, on the other hand, asked banks to extend the benefit of cheaper home-loans to old customers as well. "We have no concern on teaser rates...You (banks) tease both new and old customers...Don't leave out one segment,' Chakrabarty had said.

Hero Honda at lifetime high on dividend hopes

Hero Honda Motors has inched up 5% in intraday deals to Rs 2,030 levels after the company announced that the board of directors will meet on March 30 to consider a special interim dividend. The stock opened lower over its previous day’s close at Rs 1,931 but reversed course to touch an all-time high of Rs 2,040 on the BSE post announcement. Around 98,000 equity shares have changed hands in the counter so far. The company has posted 67% jumped in net profit to Rs 311 crore during first nine months ended December, 2009 as compared to Rs 186 crore net profit reported in same period of previous year. The company had paid 185% (Rs 3.70 on Rs 2 paid-up) dividend during 2008-09. The country's largest two-wheeler maker had reported a 16.13% increase in its sales at 3,82,096 units last month, the best-ever reported by the company for the month of February.

ArcelorMittal hikes stake in Uttam Galva to 33.8%

ArcelorMittal today said it has acquired another 4.9 per cent stake in steel maker Uttam Galva for an estimated Rs 75-80 crore, taking the total shareholding in the domestic firm to 33.8 per cent. "We have completed the acquisition of 4.9 per cent stake and now our total shareholding is 33.8 per cent in Uttam Galva," a company spokesperson told PTI. Officials from Uttam Galva confirmed the development and estimated the deal to be around Rs 75-80 crore. "We have bought the 4.99 per cent at the open offer price of Rs 120 a share," the ArcelorMittal spokesperson added. However, it could not be ascertained when did the share sale happen. Uttam Galva had earlier hoped to conclude the deal by February-end. Pursuant to the successful competition of the stake purchase by the world's largest steel producer, Uttam Galva promoters--the Miglani family-- now hold about 38 per cent stake in the leading galvanised steel maker. Last Month, ArcelorMittal had said that it had acquired 28.8 per cent stake in Uttam Galva through the open offer launched earlier. Initially, the NRI billionaire L N Mittal-led firm had entered into a share purchase agreement to buy 5.6 per cent stake in Uttam Galva. But later, pursuant to changes in Uttam Galva's equity structure, the promoters' stake sale had come down to 4.9 per cent. The two companies had entered into a co-promotion pact last year.

Videocon plans to invest Rs140bn in mobile services for next 3-yrs

Videocon plans to invest about ~Rs140bn in its mobile services in the next 3-years, it said. The company also said that it has introduced GSM mobile services in the Tamil Nadu circle.

'Oil reserves not enough; energy efficiency required'

Judicious use of oil resources and development of alternative energy is the need of the hour as fuel capacity to meet future demand is at tipping point, an Oxford University research paper has said. The age of cheap oil has now ended as demand starts to outstrip supply. The current reserve estimates should be downgraded from 1,150-1,350 billion barrels to 850-900 billion barrels, the research said. Smith School Low Carbon Mobility centre Head Oliver Inderwildi said, "There is not sufficient land to cater for both food and fuel demand... We have to make better use of the remaining resources by improving energy efficiency. Alternatives such as a hydrogen economy and electric transportation are not mature and will only play a major role in the medium to long term." There is a need to accelerate development of alternative fuel resources in order to ensure energy security and reduce emissions, the research added. Smith School Director Sir David King said, "We have to face up to a future of oil uncertainty much like the global economic uncertainty we have faced during the past two years. This challenge will have a longer term effect on our economies unless swift action is taken by governments and business. The report also raises the worrying issue of additional demand for oil being met by non-conventional methods such as fuel extraction from Canada's tar sands. However, these methods have a far higher carbon output than conventional drilling and are described as having a dual negative impact owing to the emissions produced during extraction as well as usage.

SpiceJet receives govt approval to fly overseas routes

SpiceJet has reportedly received in- principle approval from government to fly overseas routes.