Browsing Category: "News"
- Infosys and Bharti Airtel have tied up to provide DTH services.
RCom has slashed local and STD rates for its new pre-paid plans.
- Tata Motors plans to launch hybrid buses in March 2009.
- Punjab National Bank has decided to reduce the interest rates by 50 basis points on housing and car loans.
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- DLF Ltd has announced plans to invest Rs40bn over a period of five years in various parts of Kerala.
- Sterlite Industries has sought a reduction in its earlier valuation for copper miner Asarco, due to the liquidity crisis and weak copper prices.
- Tight liquidity conditions have compelled Reliance Infrastructure to go slow on its real estate projects.
- JSW Steel might cut steel prices again this month. (BL)
BPCL has informed government that it might default on its US$300mn ECB.
- Tata Teleservices is working on an agreement to sell26% stake to NTT DoCoMo Inc,
- Bhel has joined the race to acquire Czech power utility company Skoda Power.
- HCL Technologies sees deals worth about US$2bn, on which decisions would be made by clients in the next 90 days.
- Kingfisher is considering to lay-off few employees.
- Jet Airways plans to terminate the services of 1,100 more employees in the next two days.
- SpiceJet will offer up to 15% discount on advance bookings and withdrew a congestion charge.
- Godrej Industries and Godrej Consumer Products have signed a 10-year outsourcing contract with Hewlett Packard.
- Financial Technologies has acquired 90% stake in the UK-based Audit Control & Expertise Global (ACE) Group for US$22.5mn.
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There are intentional rumors in the market
KV kamath
Country’s leading private sector lender ICICI Bank, whose shares tumbled by 20 percent on Friday, has a high capital adequacy ratio of 13.97 percent, well above that of State Bank of India (SBI) and HDFC Bank during 2007-08, says a RBI report.
The capital adequacy ratio of the ICICI Bank, according to the central bank’s recent profile of the Indian banking industry, was also well above the industry average of 13 percent.
As against the Capital to Risk Weighted Assets Ratio (CRAR) of the ICICI Bank at 13.97 percent, the SBI had a CRAR of 12.64 percent and HDFC 13.60 percent.
CRAR reflects the ability of a bank to deal with loan defaults, and as per the RBI guidelines, every bank is required to maintain capital adequacy ratio.
The shares of the ICICI Bank during the last week went down by 27.83 percent on the Bombay Stock Exchange to close at Rs 364.
According to the RBI analysis, CRAR of private banks at 14.30 percent for 2007-08 was higher compared to the PSU and foreign banks.
The average CRAR of the nationalised banks stood at 12.10 percent while that of foreign banks at 13.10 percent for the year 2007-08. State Bank of India and its associates had an average CRAR of 13.20 percent, with SBI’s capital adequacy ratio stood at 12.64 percent, below the group average.
Among the nationalised banks, Canara Bank’s CRAR at 13.25 percent was higher than the industry average.
The CRAR of foreign banks such as Standard Chartered Bank, HSBC and Citibank stood at 10.59 percent, 10.59 percent and 12 percent respectively, below the industry average.
The Federal Reserve board approved applications of Morgan Stanley and Goldman Sachs to become bank holding companies.
Fed officials also increased the two securities firms’ ability to take out direct loans from the central bank, granting access against a wider pool of collateral. That step was made “to provide increased liquidity support to these firms as they transition to managing their funding within a bank holding company structure. This will allow both to create commercial banks thus bolstering their resources.
The Fed board also authorized the New York Fed to lend to the London-based broker-dealer subsidiaries of Morgan Stanley, Goldman Sachs, and Merrill Lynch.
Flush with funds, almost to the tune of Rs 10,000 crore after selling family stake in Ranbaxy Laboratories to Japan’s Daiichi Sankyo, Malvinder Singh plans to pump in money to Religare and Fortis to make them top firms in respective sectors, besides planning to list diagnostics subsidiary ‘SRL Ranbaxy’.
“Healthcare and financial services are two areas where we have existing businesses, where we will make investments,” Ranbaxy CEO and Managing Director Malvinder Singh said when asked how he planned to utilise proceeds of stake sale.
Earlier this month, Ranbaxy promoters had entered into an agreement with Daiichi Sankyo to sell off their 34.82 per cent stake in the pharmaceutical major, valued at around Rs 10,000 crore.
“I think for the next many years, our focus is clear to remain in healthcare and to make it number one healthcare firm in India,” Singh said.
Elaborating on future plans for Fortis, Singh said, “In the next step, we would be looking at taking it to international level and have strong presence in Asia and then take it to other markets. That will happen in a phase manner.”
Dispelling speculations of stake sale in Fortis Healthcare and link-up with Anil Ambani group, he said: “I am not talking to them and I welcome competition but there is absolutely no discussion at any place and I am not talking to anyone about this.”
As for Religare, he said, “In terms of the financial services, we certainly want Religare to be in the financial services what Ranbaxy is in pharmaceutical sector.”
Singh, however declined to divulge details of investments in the two firms.
“Till now, we haven’t discussed it to decide what will go where,” he said.
Asked if the funds from the Ranbaxy stake sale could be utilised by Fortis and Religare for mergers and acquisitions, he said, “It is an integral part of the growth of these companies.”
Two-three months ago Religare picked up the oldest broking house in UK, which was the first acquisition by any financial company outside India, he said.
“We have done things and will keep doings which will continue to strengthen our business globally. We are always evaluating opportunity and it is difficult at this point of time to give definite answer,” Singh said when asked if there could be any acquisition in the near future.
The Singh family had recently undertook a rebranding exercise to rechristening its diagnostics subsidiary SRL Ranbaxy under the Religare name and is planning to expand it further.
Asked if there was any plan to go public with the diagnostic arm, Singh replied in the affirmative.
“The company is doing well… we are the largest pathology company in the country and at some point, we would like to list it as a separate company in the Indian market,” he said.
Under the new initiative, Singh said SRL Ranbaxy would be rebranded in terms of the growth and the business.
