SBI cuts fixed deposit rates by 0.5 per cent, other banks may follow

Ireo Uptown, Gurgaon

State Bank of India, India’s largest bank, on Wednesday announced a reduction in interest rates on fixed deposits by 0.5 per cent for most of the maturity periods, a move likely to be followed by other lenders.

However, for deposits between 241 days and one year, the downward revision is 1 per cent. The new rate would be 6.5 per cent as against 7.5 per cent.

Of the total nine maturity periods for fixed deposits, the 0.5 per cent downward rate revision is for six categories.

The new rates would be effective from September 7, the bank said in a statement.

“The bank’s loan pipeline has dried up,” State Bank of India chairman Pratip Chaudhuri said.

“Our deposits have grown by Rs. 78,000 crore, while loan books have seen a growth of Rs. 20,000 crore,” he said.

With the revision, the interest rate on 7-90 days fixed deposit would come down to 6.50 per cent from 7 per cent.

Read more: NDTV Profit

Axis Bank to waive last 12 home loan installments

Axis Bank, India’s third largest private sector lender, on Wednesday launched a home loan product with a built-in EMI waiver scheme, under which the bank will write off the last 12 installments if the customer stays with it for at least 15 years.

However, the bank is not offering any discounted interest rates to this product.

“The product, called ‘Happy Ending Home Loan’, is being offered at the same rates as a regular loan and will be applicable to new customers under the floating rate option. The EMI waiver will be offered to all loans with an initial tenure of 20 years or more that cross their 15th year,” the bank said in a statement.

The new product, available to new customers, offers to waive 12 EMIs for those borrowers with a 15-year or more tenure and if he/she pays the EMIs on time.

Read more: NDTV Profit

Economy

Oil ministry moves Cabinet note on diesel, LPG price hike

The Petroleum Ministry has sent a comprehensive note to the Cabinet Secretariat listing various options for increasing the prices of diesel and LPG, sources told NDTV.

Earlier, sources said oil marketing companies are likely to hike the prices of all categories of fuel after the current session of Parliament ends. The monsoon session of Parliament is scheduled to end this week.

The Finance Ministry is out of funds to subsidize products any longer, the sources added.

The Prime Minister has seen the note, and a final call on the quantum of the hikes is not decided yet.

An EGoM has not been constituted for the same and a meeting of the Cabinet Committee of Political Affairs (CCPA) will have to be convened for taking a decision on this politically sensitive matter.

Read more: NDTV Profit

Rupee slips to 3-week low against $

The rupee dipped to its lowest level in three weeks on Wednesday, weighed down by losses in domestic stocks and the euro, on skepticism about the European Central Bank’s ability to unveil a concrete plan to help debt-laden euro zone economies.

The euro had been rallying on hopes of some concrete steps from the ECB after its meeting on Thursday, but closer to the date investors grew cautious and preferred to cut back on their long positions on the single currency.

A bout of risk aversion was seen across regional share markets as investors traded nervously ahead of the ECB meeting and the U.S. jobs report.

“Market is skeptical of the ECB’s bond-buying plan, but any positive move from (ECB President) Draghi will help risk sentiment,” said Vikas Babu Chittiprolu, a foreign exchange dealer with state-run Andhra Bank.

Read more: NDTV Profit

Business

Mercedes Benz scales up investments in India to Rs. 850cr

German luxury carmaker Mercedes Benz is increasing its investment in the Indian operations to Rs. 850 crore by 2014 as it prepares to start assembling more models here.

The company’s Indian arm, Mercedes-Benz India, currently has an assembly plant at Chakan in Maharashtra where it is investing over Rs. 600 crore to scale up operations.

“The investment of Rs. 850 crore will help us strengthen our production and operational capabilities with regard to our existing products and our exciting and aggressive product offensive which we are

readying for the Indian market,” Mercedes-Benz India Managing Director & CEO Peter T Honegg said in a statement.

This investment will enable Mercedes-Benz India to be future ready, he said, adding “we are bullish about the Indian market and this is reflected in our long term commitment towards the dynamic Indian market”.

At present Mercedes-Benz India locally assembles its flagship sedans the C-Class, the E-Class and the S-Class sedan.

Read more: NDTV Profit

Indian IT-BPO

Infosys BPO to recruit 8,000 more this year

NEW DELHI: Infosys BPO on Wednesday said it will hire about 8,000 people in the remaining part of this financial year and about 20 per cent of them will be in middle and senior level professionals.

“In FY 2013, we are looking at hiring 10,000-12,000 people. Of this 4,000 have already been hired. About 15-20 per cent of these would be middle and senior level professionals as well as supervisors,” Infosys BPO Chief Executive Officer Swami Swaminathan told reporters on the sidelines of NASSCOM BPO Strategy Summit 2012 here.

The employee strength of the BPO unit of Infosys stood at 24,000 people as of June, 2012. The company registered revenues of USD 109.34 million and profit of 16.6 million in the April-June quarter.

“We are looking at 15-18 per cent growth this fiscal… The BPO industry has moved from a transactional to a transformational model. Therefore as a strategy we are hiring more professionals from the industry (of clients) to service our customers,” he said.

Read more: The Economic Times

BPO industry upbeat on its strong global standing

GURGAON: BPO industry honchos have claimed that India still maintained the number one position regardless of the outsourcing policy of any country.

At the Nasscom BPO summit organized in Gurgaon on Wednesday, the industry top guns assured that there was nothing to fear from any quarter. According to them, the Indian BPO industry continues to maintain its edge, accounting for over 37% of the total global outsourcing BPO revenues.

“The BPO industry in India continues to remain strong and vibrant in spite of the impact of the recent economic gridlock and has been rapidly transforming itself from business process outsourcing (BPO) to business process management (BPM), which is the single most critical factor that has helped the industry buck the global trend and maintain its leadership position across the globe.

Read more: The Times of India

Big data market in India to touch $1 billion: Report

NEW DELHI: The big data market in India, which presents a huge market opportunity for the IT services and analytics firms, will grow to $ 1 billion in 2015.

The global ‘Big Data’ market opportunity is estimated to grow at 45 per cent annually to reach $ 25 billion by 2015, from the current size of about $ 8 billion, according to a report launched by IT industry body Nasscom and Crisil today.

It added that the Indian Big Data industry is expected to grow from $ 200 million in 2012 to $ 1 billion in 2015, at a CAGR of over 83 per cent.

Big Data refers to datasets whose size is beyond the ability of typical database software to capture, store, manage and analyse. Currently, it can range from a few dozen terabytes to multiple petabytes, according to a recent report by McKinsey and Co.

Read more: The Times of India

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