Indian auto component industry grows by 11% in FY 14-15

Automotive Component Manufacturers Association of India announced on Tuesday that the turnover of the auto component industry stood at Rs 2.34 lakh crore ($38.5 billion) for the period April 2014 to March 2015, registering a growth of 11 percent over the previous year and aCAGR of 11 percent over the last six years Financial Astrology Trading Tips

This data represents the entire supply from the auto component industry in India to the on-road and off-road vehicle manufacturers and the aftermarket in India as well as overseas, ACMA said in a release. The data also includes that of captive suppliers to the OEMs and the unorganized & smaller players, ACMA said. 

Ramesh Suri, President, ACMA said in the release, "Despite a challenging year 2013-14, the auto component industry bounced back registering an impressive growth of 11 percent in 2014-15. In fact, it is also interesting to note that while India's total exports stagnated, the Indian auto component industry exports grew by 11.4 percent. Consistent growth in the auto component exports is an indication of growing credibility of 'India made' components. ACMA has played a critical role in supporting its members in discovering and harnessing new market opportunities, further favourable government policies including the foreign trade policy need to be given due credit for the commendable exports performance Intraday Trading Tips

Vinnie Mehta, director general, ACMA commented, "The auto component industry in India is expected to scale $100 billion in turnover by 2020 with exports to grow in range of $35-40 billion. During the last fiscal several macro headwinds obstructed the growth in the industry including flagging vehicle sales, high capital costs, high interest rates and slowing down of investment in manufacturing. The industry's focus on exports, quality and various cost saving initiatives has helped it weather the weak business environment leading to a double-digit growth Jupiter Astro Book 2015-2016

Finance ministry considering merger of Bhartiya Mahila Bank with SBI

 Finance ministry is considering a proposal to merge newly created Bharatiya Mahila Bank (BMB) with State Bank of India. 

A proposal is being considered but no decision has been taken, sources said. 

When asked about the merger proposal, SBI chairman Arundhati Bhattacharya said: "I do not know the basis of this news and I have not been approached on this...I think this is something they are discussing at the Cabinet Astrology & Numerology books

She, however, added that SBI will not have a problem in amalgamating BMB, which is a small bank. 

"...but having said that Bharatiya Mahila Bank is a Rs 1,000 crore capital...and their loan book must be Rs 150-200 crore and zero non-performing assets (NPAs) along with very few branches. So it is really a very small entity as of now. So we'll see," she said Astrology market books

"This is a very small entity with a very small loan book, this is a no-brainer actually," she said. 

Launched in 2013 by the previous UPA government, the bank has about 60 branches across the country. The bank was started with an initial capital of Rs 1,000 crore. 

Last year, finance minister Arun Jaitley said he intends to reform the sector and give banks more autonomy to expand faster by mergers and consolidation. 

"There have been some suggestions for consolidation of public sector banks. Government, in principle, agrees to consider these suggestions," he had said Personal Numerology Trading Tips

SBI, which is the country's largest lender, had in past merged its two of its associate banks - State Bank of Saurashtra and State Bank of Indore. 

SBI merged State Bank of Saurashtra with itself in 2008. Two years later in 2010, State Bank of Indore was merged with the parent. 

Among the public sector banks, BMB is the only unlisted entity. 

The bank, a specialised financial vehicle for economic empowerment of women, posted a total income of Rs 45.29 crore during 2013-14. The total business of the bank stood at Rs 175.17 crore at the end of March 2014 Jupiter Astro Book 2015-2016

Petrol prices cut by 31 paise, diesel 71 paise

 Petrol prices were on Tuesday cut by 31 paise per litre and diesel by 71 paise a litre in line with fall in international oil rates and rupee appreciation. 

The cut in petrol prices comes on back of three successive increases since May, while this is the second reduction in diesel rates this month Stock Market Trading Tips

Petrol in Delhi will cost Rs 66.62 per litre from tomorrow instead of Rs 66.93 at present. A litre of diesel will cost Rs 50.22 per litre as against Rs 50.93 earlier, Indian Oil Corp (IOC), the nation's largest oil company, said. 

Auto fuel rates were last revised on June 16 when prices of petrol were hiked by 64 paise a litre but diesel rates were cut by Rs 1.35 per litre. 

"Since last price change, there has been a decrease in international prices of both petrol and diesel. Indian rupee-US dollar exchange rate has appreciated during this period. Combined impact of both these factors warrants a downward revision in prices, the impact of which is being passed on to the consumers with this price decrease," IOC said Financial Astrology Trading Tips

Prior to June 16 revision, petrol prices were hiked by Rs 3.13 a litre and diesel by Rs 2.71 per litre on May 16. 

State-owned fuel retailers IOC, Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) revise petrol and diesel prices on 1st and 16th of every month based on average imported cost and rupee-dollar exchange rate in the previous fortnight. 

"The movement of prices in international oil market and Rupee-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes," IOC statement added Intraday Trading Tips

Delhi 5th in global cheap beer index

With an average price of $1.75 for a 330ml bottle, Delhi has the fifth cheapest beer among 75 world cities, according to the 2015 Beer Price Index. At the other end of the spectrum, Geneva has the costliest beer at an average price of $6.32 for a 330ml bottle.

The Beer Price Index, which compares several beers in stores and bars to rank 75 world cities in terms of price, is also meant to double as a useful guide for holidaymakers looking for value holidays this year. It is a rough indicator for those looking at costs beyond hotels and accommodation Stock Market Trading Tips


"Beer is an interesting product. Its price in a particular city, more often than not, reflects the cost of living standards for tourists," says Rahul Singh, founder and CEO of Beer Cafe, one of the country's leading beer chains that serve brews from all across the world.

Singh says India is one of the few places in the world where the price of beer fluctuates greatly as one moves across states. "Taxes are crazy. In Delhi, if your menu price is Rs 100 for a bottle of beer in a restaurant, you would have to fork out Rs 142 after adding taxes. At a five-star restaurant, you will end up paying Rs 500 for a normal pint of beer. On the other hand, Goa and Daman are great places to have cheap beer because taxes are very low," he said Intraday Trading Tips

Close on the heels of Geneva as the home of the most expensive beer are Hong Kong ($6.16), Tel Aviv ($5.79), Oslo ($5.31), New York ($5.20) and Singapore ($5.13). Beer comes cheap in cities such as Krakow ($1.66), Kiev ($1.66), Bratislava ($1.69) and Malaga ($1.72).

"Another interesting fact is that tourists always tend to try out local brews. For instance, when they are in India, Germans wouldn't touch their iconic brands of beer. They always go for Kingfisher," says Singh Jackpot Trading Tips

IndiGo and Infibeam file for Rs 3,000 crore IPOs

Marking a big day for IPOs, two companies — no-frills carrier IndiGo and e-retailer Infibeam — on Tuesday filed papers with Sebi to raise nearly Rs 3,000 crore in all. In a sign that the IPO market is revving up after months of subdued activity, staffing firm TeamLease also initiated the process of filing papers for raising around Rs 450 crore Stock Market Trading Tips

READ ALSO: No more free check-in baggage if airlines like SpiceJet, Indigo, AirAsia have their way

In addition, Biocon arm Syngene, Prabhat Dairy, Navkar and Catholic Syrian Bank, which have already got a nod from regulator Sebi, plan to hit the capital market in the next two-three months with IPO offers totalling nearly Rs 2,000 crore Intraday Trading Tips

InterGlobe Aviation, which runs the country's biggest airline by market share under 'IndiGo' brand, plans to raise up to Rs 2,500 crore. Becoming the first e-commerce player to tap the IPO route, Infibeam plans to mop-up around Rs 450 crore.

READ ALSO: Now, flight delay not the airline's liability

Started in 2007, Infibeam runs several e-commerce services such as Infibeam.com, Indent, BuildaBazaar, Incept and Picsquare. Last year, Sony Music had bought a 26% stake in Indent. TeamLease Services' MD & co-founder Ashok Reddy said the company was exploring multiple options to facilitate the aggressive growth that it plans for the future Nifty Trading Tips

Kotak Bank, ING Vysya merger to be completed this financial year

Kotak Mahindra Bank (KMB), which acquired ING Vysya Bank in an all-stock deal last year, on Tuesday said it expects to end the integration process by the end of this financial year. After acquiring ING Vysya, KMB became the fourth-largest private lender in the country after ICICI Bank, HDFC Bank and Axis Bank.

"The integration process will be over in the next six to nine months," Sumit Bali, senior executive vice-president and head (personal assets), KMB, said, adding that after the acquisition of ING Vysya, the employee strength has gone up to 40,000, of which 29,500 belong to Kotak Mahindra and the rest belong to ING Vyasa Personal Numerology Trading Tips

On expansion plans, he said the focus will be more on "consolidation" of branches of ING Vysya, adding that there will be a marginal 10-15% rise in the number of branches this fiscal. Currently, the bank has 1,200 branches.

Speaking at the launch of a special themed debit card with the cover of Amish Tripathi's book 'Scion of Ikshvaku', he said the card featuring the cover of 'Scion of Ikshvaku' offers discounts on any book purchased at Crossword. "The special themed debit card is a unique addition to our cards portfolio, and a prized possession for any book lover. We will continue offering exclusive propositions in areas of lifestyle and passion, and make banking with us more delightful," he said, adding that the bank will tie up with more authors in the coming days Nifty Trading Tips

The bank's top official indicated that banking activity is expected to surge on social media platform in the coming days as the banking industry is seeing a dip in net banking and a rise in mobile banking activities. "The growth on social media seems good as we are seeing a growth of around 30-40% quarter-on-quarter," he added.

The bank launched 'Tweet to Order', which is a book buying service on Twitter for the bank's customers. The bank is betting big on the social media platform and launched banking on social media in March 2014, following it up with Hashtag Banking in February 2015 Astrology market books

Maruti sales to be over half of Suzuki’s by 2020

Maruti Suzuki will account for more than half of parent Suzuki's global sales by 2020 as the Indian company launches new models while expanding production capacity. 

In a 2020 forecast that Suzuki made in Tokyo, the company said that Asia will lead the charge as it chases sales of 3.4 million by 2020 against the 2.9 million units sold in 2014 Astrology market books

The forecast was made at a conference where Suzuki chairman Osamu Suzuki handed over the title of chief operating officer to his son Toshihiro, though the 85-year-old still continues to lead the company. 

Maruti, which was originally formed as a joint venture between Suzuki and the Indian government but now is controlled by the Japanese major, will play a pivotal role in Suzuki's five-year plan (running up to 2020) that will coincide with its 100th anniversary. 

Maruti Suzuki accounted for sale of 1.3 million units in Suzuki's total sale of 2.9 million units last year. For 2020, the target for Maruti is 2 million units Jupiter Astro Book 2015-2016

Maruti management said that it is confident of meeting Suzuki's targets. "Suzuki's medium-term plan announced on Tuesday puts high focus on India, which is very positive. Toshihiro Suzuki has been a Board member of Maruti Suzuki since October 2013 and has a very good understanding of our business. Overall, Suzuki's commitment to India remains unchanged," Maruti Suzuki MD & CEO Kenichi Ayukawa said. 

Osamu Suzuki, born Osamu Matsuda, joined the automaker in 1958 after marrying into the family. During his nearly four decades of running the company, Suzuki has turned the loom maker founded by his wife's grandfather into one of the world's biggest automakers, blazing the trail into the Indian market in the early 1980s Personal Numerology Trading Tips

Delhi HC paves way to scrap GMR’s road contract

The Delhi high court on Monday cleared the way for scrapping the contract for country's largest highway project. Justice V K Rao dismissed the petition of infrastructure majorGMR challenging NHAI's move to invoke the bank guarantee. Sources said that concessionaire's Rs 269 crore bank guarantee is lying with NHAI Astrology & Numerology books

GMR had bagged the 555 km Kishangarh-Udaipur-Ahmedabad highway project costing Rs 5,500 crore in November 2011. Citing failure on the part of NHAI to get statutory clearances, the private player had issued a notice of intention to terminate the contract with NHAI in 2012. Thereafter, it had moved the HC seeking stay on NHAI invoking its bank guarantee. 

NHAI had rejected GMR's termination notice, saying this move was based on flimsy ground and was factually not-correct. "However, in the due course of time, efforts were made to revive the project. But nothing helped. So, even NHAI board had approved to terminate the contract. Now with the HC order, the contract stands terminated as termination ends with encashment of the bank guarantee," said a road ministry official Commodity Trading Tips

Putting an end to the legal battle of over two years between the two parties, Justice Rao observed, "This court is of the view that the petitioner has not been able to establish a prima facie case in its favour. The balance of convenience is also not in favour of the petitioner for this court to injunct the respondent from invoking the bank guarantee. I do not see any merit in the petition, the same is dismissed." 

NHAI sources said they would soon take a call on the future course of action. They added the company has already invoked arbitration claiming Rs 1,200 crore. "We will also decide on whether we need to go ahead with the plan to expand the highway or not Jackpot Trading Tips

Mahila bank may merge with SBI

Former finance minister P Chidambaram's brainchild the Bharatiya Mahila Bank (BMB), launched only 20 months ago, may be merged with the State Bank of India. According to sources, the merger proposal is being discussed within the government considering that the newly started bank will find it a challenge to build a distribution reach Stock Market Trading Tips

The bank was started with a capital of Rs 1,000 crore which was provided under the budget. The bank has opened 62 branches, mobilized deposits of around Rs 800 crore and has loans of around Rs 400 crore. Following the announcement in the 2013 budget, the bank was launched in record time in November 2013. But despite the speed of the roll-out, the bank's coverage has been very meagre and large lenders have been able to open more women's account during the same period. 

"I do not know the basis of this news and I have not been approached on this...I think this is something they are discussing at the Cabinet," said SBI chairman Arundhati Bhattacharya when asked about the likelihood of a merger Astrology & Numerology books

According to analysts, such a merger would not be negative for State Bank of India but would in fact boost the bank's capital adequacy ratio. The bank has hardly any non-performing assets as it does not have any exposure to industry. 

Last year, finance minister Arun Jaitley said he intends to reform the sector and give banks more autonomy to expand faster by mergers and consolidation. "There have been some suggestions for consolidation of public sector banks. The government, in principle, agrees to consider these suggestions," he had said. 

SBI, which is the country's largest lender, had in past merged its two of its associate banks — State Bank of Saurashtra and State Bank of Indore. SBI merged State Bank of Saurashtra with itself in 2008. Two years later in 2010, State Bank of Indore was merged with the parent. Among the public sector banks, BMB is the only unlisted entity Jupiter Astro Book 2015-2016

Disappointment over slow reforms: Moody's report

A poll conducted by global ratings agency Moody's has shown that there is some disappointment with the pace of economic reforms being pursued by the Narendra Modi administration and there was increasing concern about the risk of policy stagnation Stock Market Trading Tips

"Specifically, almost half of the poll respondents identified sluggish reform momentum as the greatest risk to India's macroeconomic story," Moody's Investor Service said. 

Several key legislative reforms are pending in Parliament and investors have complained about the slow pace of reforms. The government has taken several measures to boost growth and revive sentiment but has shied away from taking big-bang measures Financial Astrology Trading Tips

"Moody's notes that multi-party, federal democracy in India underpins a gradual pace of policy implementation. While many of the policies are positive for India's institutional strength, the direct impact of growth-enhancing reforms is only likely to take full effect over a multi-year horizon," the agency said. 

"For example, plans to cut the country's corporate tax rate to 25% from the existing 30% over the next four years will be credit positive for all Indian companies as it will reduce their tax expenses and increase competitiveness over the medium term," it said Astrology market books

Core sector grows 4.4% in May, fastest in 6 months

Core sector growth revived in May, clocking fastest pace in six months, led by a turnaround in electricity, oil refining, steel and cement sectors, bringing some cheer for policymakers who have been battling a sluggish industrial sector Jupiter Astro Book 2015-2016

Government data showed on Tuesday the core sector, which spans electricity, coal, steel, cement, refinery production, natural gas, crude oil and fertilizers, rose an annual 4.4% compared to a contraction of 0.4% in April. 

The sector accounts for 38% of the index of industrial production and should augur well for the industrial output data due later in the month. The industrial sector has been facing headwinds for the past several months due to a string of factors Jackpot Trading Tips

The government has unveiled several measures to revive stalled projects and got them off the ground and analysts say the impact of the policy measures would be visible in the months ahead. 

But economists say the trend has to sustain to signal a firm recovery. "Growth in steel and cement was 2.6% this month which could reflect some action in the infra space based on government expenditure during this period. But it may be premature to form such a conclusion and clearly some more data points are required to be analyzed before drawing firm conclusions of a turnaround," said Madan Sabnavis, chief economist at Care Ratings  Intraday Trading Tips

Coal, electricity and refinery products displayed robust growth. 

Rupee weakens 4 paise against US dollar

The rupee depreciated 4 paise to 63.68 against theUS dollar in early trade today at the Interbank Foreign Exchange due to appreciation of the American currency overseas  Jupiter Astro Book 2015-2016

Forex dealers said fresh demand for the dollar from importers also weighed, but a higher opening in the domestic equity market limited rupee's fall Stock Market Trading Tips

The rupee had snapped its 5-day losing trend against the US currency by ending higher by 20 paise at 63.64 in yesterday's trade on fresh selling of the greenback by banks and exporters on hopes of revival in foreign capital inflows Intraday Trading Tips

Sensex keeps up tempo, surges 90 points on positive macro data

The benchmark Sensex jumped over 90 points in early trade today, extending Tuesday's gains, on the back of increased buying by participants as the country's infrastructure growth hit a 6-month high in May Jupiter Astro Book 2015-2016

Besides, a firming trend overseas kept the momentum going. 

The 30-share index, which had gained over 135 points in the previous session, rose 90.47 points, or 0.33 %, to 27.871.30, with all sectoral indices led by consumer durables, healthcare and realty trading in the positive zone with gains up to 1.08 %  Stock Market Trading Tips

The NSE Nifty also inched higher by 17.30 points, or 0.21 %, to 8,385.80. 

Brokers said sentiment got a lift after the output of eight infrastructure sectors expanded 4.4 per cent in May, the highest growth rate in the past six months and a hardening trend in the global market despite Greece's default  Financial Astrology Trading Tips

Among other Asian markets, Japan's Nikkei rose 0.22 % in early trade today, shrugging off the Greek default. Financial markets in Hong Kong are closed today. 

The US Dow Jones Industrial Average closed 0.13 % higher in yesterday's trade Commodity Trading Tips

Sebi to focus on cost incurred by mutual fund investor

India's market regulator on Tuesday said it will focus on the cost to a mutual fund investor as part of its customer protection measures  Jupiter Astro Book 2015-2016

Speaking at the CII Mutual Fund Summit here, Securities and Exchange Board of India chairman U K Sinha said consumer protection is one of the prime focus areas of Sebi and cost to investor will be an important aspect of the future course of action. 

The finance ministry has also set-up a Financial Stability Development Council to take into account the cost structures, he said at the event organized by the Confederation of Indian Industry (CII) Jackpot Trading Tips  

Sinha said that the mutual fund industry has helped in countering the volatility caused by the investments pattern of foreign portfolio investors and brought macroeconomic stability to Indian markets. 

He further stated that the government's decision of allowing the Employees Provident Fund (EPFO) to invest in mutual fund schemes is a great achievement Stock Market Trading Tips

Sinha also urged the industry to think of medium to long-term measures for its sustainable growth, and also now focus on how equitably they are serving the requirements of the customers. 

In the last three years, measures like reduction in transaction charges, introduction of consolidated account statements, availability of mutual fund units in demat form, fungibility of total expense ratio, encouraging voting by asset managers to protect interest of minority share holders, addition disclosure of distributors, tax clarity on offshore funds, recent announcement in the budget over tax clarity for scheme mergers and many more were implemented, he said Intraday Trading Tips

ECBs, NRI deposits push external debt

India's total external debt rose by 6.6 per cent to $475.8 billion during 2014-15 from $446.3 billion in 2013-14, mainly due to increase in external commercial borrowings (ECBs) and non-resident Indian (NRI) deposits.

However, as a percentage of the gross domestic product (GDP), the country's external debt works out to be 23.8 per cent at the end of March 2015, marginally up from 23.6 per cent as of March 2014 Astrology & Numerology books

Long-term debt at the end of March was $391.1 billion, reflecting an increase of 10.3 per cent over the March 2014 level.

Short-term external debt was $84.7 billion in March, showing a decline of 7.6 per cent over the March 2014 level.

Short-term debt, the release said, accounted for 17.8 per cent of the total external debt as at March-end as against 20.5 per cent at March 2014, RBI said in a release Nifty Trading Tips

"Further, the increase in the magnitude of external debt was partly offset by the valuation gains resulting from the appreciation of the US dollar vis-a-vis Indian rupee and other major currencies," it said.

Aditi Nayar, senior economist, ICRA, said the accretion of external debt moderated in 2014-15 as compared with 2013-14 and was outpaced by the increase in foreign exchange reserves, resulting in a welcome improvement in the coverage provided by reserves.

Other indicators of vulnerability too receded, such as the proportion of short-term debt by original and residual maturity Jackpot Trading Tips

If external developments lead to a prolonged bout of risk aversion, refinancing pressures might re-emerge for a portion of the debt that is set to mature during 2015-16. However, the substantial level of foreign exchange reserves limits the vulnerability on a macroeconomic level, Nayar said.

The shares of government (sovereign) and non-government debt in the total external debt increased to 18.9 per cent and 81.1 per cent, respectively, at the end of March 2015.

The share of dollar-denominated debt was the highest in the external debt stock at 58.3 per cent at the end of March 2015, followed by debt denominated in Indian rupee (27.9 per cent), SDR (5.8 per cent), Japanese yen (4 per cent) and Euro (2.4 per cent), it said Commodity Trading Tips

Axis Bank launches non-callable deposits

Axis Bank, the country's third largest private sector bank, has become the first lender to launch non-callable deposits. This comes two months after the Reserve Bank of India (RBI) came out with the norms allowing banks to offer differential rates on fixed deposits Stock Market Trading Tips

Axis Bank's Fixed Deposit Plus will offer customers 10 basis points higher interest rate for depositing a minimum of Rs 15 lakh for a minimum period of 1 year and a maximum period of less than 2 years.

Non-callable deposits are ones in which premature withdrawal is not allowed. RBI had allowed banks to use "callability" as a distinguishing feature for a bank fixed deposit. With this feature, banks can now offer a differential rate of interest on the deposits Commodity Trading Tips

ALSO READ: Axis Bank cuts base rate to by 10 bps to 9.85%

"With the increasing number of customers seeking safer investment options, we are confident that the new 'Fixed Deposit Plus' scheme will offer higher earning potential, while continuing to promise guaranteed returns," said Rajiv Anand, group executive and head, retail banking, Axis Bank.

Apart from Axis Bank, no other banks so far had introduced this product and it is unlikely that more banks will immediately join the fray. Lenders say that in a falling deposit rate scenario they are not keen to offer a higher rate of interest. Moreover, some lenders are also wary about the callability feature Jupiter Astro Book 2015-2016

"At the moment the regulator has said that the deposits will not be allowed to withdraw the amount before the due date. But what if there is a need and the customer really needs the money then the banks will have to oblige. So we are a little wary about it and therefore are not planning to launch it any time soon," said the retail head of another private bank.

Another private sector bank official explained that the fact that fixed deposits (FDs) can be redeemed at any time is the most important feature and without this it may lose sheen. "People want to put their money in FDs because it allows you to withdraw it. I am not sure if there will be a demand from either corporate or retail customers to lock in their money for a fixed duration," he added, requesting anonymity Astrology & Numerology books 

Life insurers to have representative body without Irdai members

Insurance Regulatory and Development Authority of India (Irdai) members will no longer will be there on the newly-formed Life Insurance Council. The council, which will work on the lines of Indian Banks' Association, will have four members including one permanent member from the Life Insurance Corporation of India Stock Market Trading Tips

Currently, the council is led by D D Singh, member (distribution) at Irdai, who is set to retire soon. The other members are V Jayanth Kumar, joint director (life) at Irdai and V Manickam, secretary-general of the Council. After the council is reorganised, the chairperson of the Council will be an industry official.

According to the Insurance Laws (Amendment) Act passed by Parliament, council members can authorise any of their officers to act as their representatives at council meetings Financial Astrology Trading Tips

ALSO READ: Irdai plans to standardise health products

"Unlike the current composition, the Life Insurance Council would have the executive council members from the industry. While regulatory officials were part of the council, we will now have all industry officials. Also, regulatory officials will not be required to be present in the council meetings," said a senior industry official.

According to the revised Insurance Act, the executive committee of the Life Insurance Council will have four representatives nominated by members. The council will have bye-laws to decide on this election Intraday Trading Tips

While no members from Irdai will be on the council's board, they will have the right to nominate some members. The council would have an eminent person not connected with insurance business, nominated by Irda. There would be three persons to represent insurance agents, intermediaries and policyholders, respectively.

ALSO READ: Co-payment in health insurance only after netting hospital discounts, says IRDAI

The objective of the council is to create a positive image of the insurance sector and enhancing consumer confidence. It is also entrusted with the responsibility of maintaining high standards of ethics and governance and promoting awareness of the role and benefits of life insurance.

The council is a body of insurers, which organises pro-active discussions with the government, lawmakers, and regulators on various issues faced by the sector. It also conducts research on life insurance, publishes monographs and contributes to the development of the sector Nifty Trading Tips

SBI plays down reports of Bharatiya Mahila Bank merger

State bank of India, the country’s largest lender, on Tuesday played down reports about the government’s move to merge public sector bank Bharatiya Mahila Bank (BMB) with itself.

“I do not know the basis of it (reports of merger of BMB with SBI) and have not yet been approached for it,” SBI Chairman Arundhati Bhattacharya told reporters Free Stock Share Tips

“Media is reporting that this is something they are discussing in government (Cabinet). Having said that, BMB has Rs 1,000-crore capital and loan book must be about Rs 150-200 crore. It does not have non-performing loans and has very few branches. It is a small entity as of now. So we will see,” Bhattacharya said during a press conference to announce a tie-up with travel portal Makemytrip.com.

According to media reports, the Union Cabinet will soon take up a proposal to combine the New Delhi-based BMB with SBI. BMB was a brainchild of the previous Congress-led United Progressive Alliance government, which was inaugurated by then Prime Minister Manmohan Singh in November 2013 Personal Numerology Trading Tips
 
Adding fuel to reports of a merger is the recent development of BMB Chairman and Managing Director Usha Ananthasubramanian appearing for interviews conducted to select managing director and chief executives for five large public sector banks.

BMB — the country’s only all-woman bank — was founded to focus on lending to women in the country. It has 62 branches with the last one being inaugurated on May 27.

In July 2014, Finance Minister Arun Jaitley had said the government will consider suggestions for the “consolidation” of state-run banks.

Meanwhile, SBI is in advanced talks with foreign partners in insurance ventures for the latter raising their stake. Bhattacharya said Insurance Australia Group (IAG), with which the bank has partnered for the general insurance business, will be raising its stake to 49 percent Commodity Trading Tips

In SBI General Insurance, SBI owns 74 per cent while IAG holds the remaining 26 per cent.

IAG has given a call for exercising their entire option of 49 per cent. The valuation is going on, she said adding that IAG will also increase stake by buying SBI's stake.

SBI said BNP Paribas Cardif, its partner in the life insurance business, is keen to increase stake by 10 per cent to 36 per cent. SBI holds 74 per cent stake.

BNP Cardif will increase its stake by buying SBI's shares in the life insurance business and there will be no fresh capital infusion. “It will be a sale of our equity stake. We will encash our stake,” Bhattacharya said Jackpot Trading Tips

Coordinated efforts needed to spread financial inclusion: S S Mundra

Reserve Bank of India Deputy Governor S S Mundra has stressed the need for financial inclusion as a means to address the issue of poverty. He also stressed on the strong co-relation between financial inclusion, financial literacy and consumer protection to ensure the stability of the financial system.

"If universal financial inclusion has to become a reality, efforts to spread financial literacy have to be an essential pre-requisite," said Mundra at the conference on financial literacy organised by College of Agriculture Banking at Pune Astrology market books

He stressed the need for coordinated efforts from various agencies - the government, financial institutions, industry, consumer associations and mass media.

"The level of awareness about simple things like need for timely payment of the bills, credit card dues etc. is absolutely low. People aren't really aware about the penalties that they might end up paying for their failures to make timely payment of bills/credit card dues. Not only the penalty could be severe, even more importantly, the bad credit behaviour can feed into their credit history with credit bureaus which can serve as an impediment for their future credit requirement. These are the areas on which the literacy efforts for this group should focus on," suggested Mundra Jackpot Trading Tips

Apart from low level of financial literacy, low social and technological inclusion, hesitation to use new technology like ATMs, mobile etc and low level of financial literacy are impediments in achieving universal financial inclusion, said Mundra Jupiter Astro Book 2015-2016

Private banks wrest market share from PSBs

At a time when most public sector banks (PSBs) have been busy dealing with the issue of mounting bad loans and depleting capital, private sector lenders have been firming up their position both on the loans as well as deposits front.

A Morgan Stanley report points out that within current account deposits, the share of PSBs has gone down by 2.8 per cent in four years while private banks have gained 4.9 per cent of share. On the advances front, private banks have managed to grow their share aggressively, especially in the retail and small and medium enterprise segments Astrology & Numerology books

Another report by Jefferies explained that in the last financial year, PSBs have lost 120 basis points of loan market share to private banks.

The growth of private banks is not just limited to accounts and deposits, the lenders have also been increasing their fee income compared to PSBs. The Morgan Stanley report pointed out that private banks have gained 6.1 per cent market share in four years. The picture is similar in case of credit cards as well, where private banks have managed to enjoy the majority of the market share.

"With 70 per cent of the system (state-owned banks) challenged on the balance sheet, the private banks are very well positioned to gain share - especially in the more lucrative segments - thereby driving an average earnings CAGR (compound annual growth rate) of 23 per cent over the next three years," said the Morgan Stanley report Commodity Trading Tips

The report also points out that with the PSBs remaining capital-constrained, they are expected to lose market share even going ahead at a fairly aggressive pace at 1-1.5 per cent every year. The Financial Stability Report published by the Reserve Bank of India (RBI) stated the capital to risk weighted assets ratio (CRAR) of PSBs declined the maximum by 1.8 percentage points between March 2011 and March 2015, followed by foreign banks at 1.5 percentage points and private banks at 1.1 percentage points.

The CRAR of PSBs has been under more pressure also on account of higher provisioning required due to the rise in non-performing assets (NPAs). According to the report, PSBs recorded the highest level of stressed assets at 13.5 per cent of total advances as of March 2015, compared with 4.6 per cent in the case of private banks. At the same time, the net NPA ratio of PSBs increased from 3.1 per cent to 3.2 per cent and in the case of private banks it increased from 0.8 per cent to 0.9 percent Financial Astrology Trading Tips

Not surprisingly, with private banks faring better than PSBs on all other parameters, they have also performed better on the profitability front.

At a time when the aggregate net profit for the sector was down six per cent year-on-year, PSBs saw a decline of 24 per cent while private banks were up 14 per cent at the end of FY15. As a result, PSBs' share in total profit for the sector declined to 48 per cent in FY15 versus 52 per cent in FY14, said the Jefferies report.

"Private banks have done extremely well - taking away 19 per cent of share from system profits over the past four years. The private banks we cover now have a 40 per cent share in system profits (compared to 17 per cent share in loans)," the Morgan Stanley report said Jupiter Astro Book 2015-2016