business

Why SBI profits Fell by 99% ?

by

India’s Largest Bank, the State Bank of India reported Q4FY11 PAT of Rs 209mn, 99% below consensus, primarily on lower NII, higher costs and provisions.

SBI has hiked lending rates by 100 bps (50 bps higher than other banks a catch-up rather than a proactive measure) in 1QFY2012 to offset some of the pressure in margins witnessed. The bank has now fully provided for pension liability of Rs117bn on account of wage hike Rs79 bn through reserves and Rs24.7 bn through profit and loss account during the

Read moreWhy SBI profits Fell by 99% ?

RBI for Regime of Free Savings Bank Interest Rate

by

India’s central bank RBI argues for interest rate deregulation on savings account deposits which currently carries interest rates of 3.5% and has not been changed since March 1, 2003. According to the discussion paper,

it is necessary that all rates move in tandem with the policy rates and the regulated savings rate has adversely affected the transmission of monetary policy. The RBI has not provided any time frame for the deregulation. Given the discussion

Read moreRBI for Regime of Free Savings Bank Interest Rate

Lokpal Bill Mission – Curb Corruption

by

It is well known fact from Kids to Grandpas across the length and breadth of the country that Bribery / Corruption is rampant in India and termed political interference as a key reason for poor enforcement of anti-bribery and corruption laws in the country. Hence, having a strong civil participation in the matter can help bring enhanced governance.

Successive Governments in India has taken various initiatives in the recent past to curb corruption, mostly by being vocal in the press without actual powers to the civil society nor punishing the culprits. There is an urgent need for a mechanism that would adopt

Read moreLokpal Bill Mission – Curb Corruption

Budget 2011 Live – Highlights

by

Excerpts from Pranab Mukherjee’s Speech Live – Continuous Update.

Indian economy at pre-crisis growth trajectory. Food Inflation still remains a concern. FY11 Fiscal consolidation impressive. Service Sector continues to grow in double digit. Stronger fiscal consolidation needed. Need to ensure sustained private investment.

FM says corruption is a problem; must fight it collectively. Need to improve the supply of agriculture to meet demand. Current account deficit poses some concern. Economic growth seen at 8.75%-9.25% in FY12. GST rollout preparation in final stages, will be tabled in the current session. Sees FY11 industrial growth at 8.1% and services growth at 9.6%.

FIIs allowed to invest in MF schemes. Divestment target at

Read moreBudget 2011 Live – Highlights

RBI Concerned on Current + Fiscal Deficit

by

In the Monetary Policy Review, the RBI clearly stated it is concerned about the Twin Deficit-s Current Account as well as Fiscal. The RBI expected the overall current account deficit for 2010-2011 to be about 3.5% of GDP. It noted ‘A CAD of this magnitude is not sustainable.’ The RBI was also concerned about the financing of the current account deficit since the faster-than-expected global recovery may enhance the attractiveness of investment opportunities in

Read moreRBI Concerned on Current + Fiscal Deficit

Onion prices Make Institutional Investors Cry & Sell India

by

The decelerating trend in headline inflation was rudely reversed in December due to rising food prices both on the domestic and global front. Consequently, headline inflation rose 8.43%YoY in Dec, in line with expectations of 8.4% but higher than 7.5% levels seen in Nov.

While the base effect was expected to kick in, the rise in the Dec numbers was primarily due to primary articles which rose 16.5% YoY, 3.5%MoM) Primary food inflation jumped to 13.6% y-o-y

Read moreOnion prices Make Institutional Investors Cry & Sell India