Federal Bank revises home, auto loan rates for festival season

Ireo Waterfront, Ludhiana

Ireo Waterfront, Ludhiana

Federal Bank revised lending rates in the home and car loans segment for the month of August and September.

During this period, the bank will offer a uniform concessional interest rate of 10.25 per cent for all housing loans regardless of the amount and period of loans, the old private sector bank said in a statement.

Car loan rates will be offered at a starting rate of 10.25 per cent. No processing fee will be levied on housing loans and car loans during the festival period.

The revised rates will be offered from August 5 to September 30.

At present, the Kerala-based bank’s base rate (the minimum lending rate that the bank offers) is 10.20 per cent.

Special Loan stalls will be put up in different centres in Kerala and will facilitate spot sanction of loans. Customers can also avail various top-up loans linked to their housing loans at concessional rates. Special house warming loan to celebrate the auspicious occasion will also be available, the bank said.

Read more: Business Line

Economy

Rupee resumes decline; government may announce measures as RBI steps fail

The rupee on Wednesday resumed its descent to move within sight of a record low hit a day earlier, with policymakers set to discuss fresh measures to defend the worst performing Asian currency of the year so far.

Financial sector regulators, including Raghuram Rajan, who was on Tuesday appointed to take over next month as governor of the Reserve Bank of India, were due to meet in Mumbai amid speculation that the government will soon announce steps to spur capital inflows.

The government is set to relax norms for external commercial borrowings to enable debt-laden Indian firms tap overseas markets, a move that will also serve to boost capital inflows and help prop up the rupee.

The high-level committee on ECBs (HLCECB), is likely to take a host of decisions, including allowing the Indian arms of multinational companies to raise funds from parents for working capital.

The panel may also allow repayment of rupee loans from ECB proceeds, besides letting companies raise up to $300 million by way of external debt with tenure less than three years compared with the current limit of $20 million. Importantly, the quantum of ECB under automatic route is set to be doubled to $1.5 billion from $750 million now for debt with maturity up to five years.

Read more: The Economic Times

12 FDI proposals worth Rs 343 crore approved

The Government has approved 12 foreign direct investment proposals worth Rs 343.39 crore including Sutures India’s proposal to increase foreign equity in its brownfield company with an investment of Rs 160 crore.

US-based pharma company Mylan’s proposal to buy an Indian generic company at Rs 5,168 crore has been kept in abeyance till the FDI policy for brownfield pharma projects get finalised. The Finance Ministry has taken the decisions based on the Foreign Investment Promotion Board’s meeting on July 5.

Apart from Sutures, three more pharmaceutical companies got FDI approvals, although for smaller amounts, which include Hyderabad-based Verdant Life (Rs 3.16 crore), New Delhi-based Curadev Pharma (Rs 25 crore) and Invida India (Rs 35.74 crore)

The Finance Ministry also gave an approval to Gurgaon-based Dia Vikas Capital, an Indian NBFC supporting micro-finance, to get additional FDI worth Rs 93 crore. Four proposals got deferred which includes Mumbai-based INX Music’s indirect foreign investment proposal to undertake the additional activity of broadcasting of a non-news and current affairs channel. Three proposals got rejected including US-based Porocel International LLC’s submission to change the purpose of funds, provided to an Indian company, from advances against future production to foreign direct investment.

Source: Business Line

Indian ultra-HNI count rises to 100,900

The population of Indian ultra-HNHs is estimated to have grown to around 100,900 in 2012-13, and is expected to triple to around 329,000 over the next five years, says the third edition of the ‘Top of the Pyramid’ report launched by Kotak Wealth Management and CRISIL Research.

“Consequently, the net worth of ultra HNHs is estimated to surge 4.5 times from an estimated Rs.86 trillion (86,000 billion) in 2012-13, to Rs.380 trillion (380,000 billion) by 2017-18. What is interesting is that close to 46 per cent reside in non-metros (the report defines an ultra HNH as one with a minimum average net worth of Rs.250 million accumulated over the past 10 years),” the report said.

Unlike last year, a large percentage of respondents believe that there is a downturn and an early recovery is not in sight, indicating a level of pessimism about the economy that was not seen last year. This has caused a change in the ultra HNIs’ perception on spending: nearly a third of our respondents indicated that their spending has been adversely impacted. Although they continue to spend to maintain their lifestyle—thereby ensuring that their non-discretionary spend in the near term won’t be curtailed—they are now exercising greater caution regarding discretionary purchases.

Read more: Money Guru India

Infrastructure

Siemens group bags Rs.574 crore order from Gurgaon Metro

A consortium comprising Siemens, Siemens AG and Siemens, China, has won a turnkey project of the Gurgaon Metro worth 70 million euros (Rs.574 crore) from IL&FS Rail Ltd, Siemens said Tuesday.

Siemens will supply rolling stock, electrification signalling systems and depot workshop equipment, a company statement said. It is also responsible for the complete system integration including interface management of the rail sub-systems.

“The Gurgaon Metro project is a first of its kind in India; the first phase is close to completion. We are confident that this project will become a benchmark in the public transportation sector,” said Sanjiv Rai, CEO of IL&FS Rail Ltd, a subsidiary of Infrastructure Leasing and Financial Services (IL&FS).

The order value is about Rs.574 crore, of which the share of Siemens Ltd is Rs.184.1 crore or about 30 percent. The company did not provide the share of the other consortium partners citing currency fluctuations.

The project involves extension of the Gurgaon Metro line with a new 7 km southern line. The Gurgaon Metro South line will add six stations in southeast Gurgaon.

“The new southern line of the Metro rail link from Sikanderpur station to Sector 56, will bring respite to the numerous people travelling to the various office complexes and residential areas in this area,” Siemens said.

Read more: Daily News

17 airports to be constructed till 2017: Minister

7 new airports are to be constructed during the 12 Plan period, the Minister of State for Civil Aviation, K. C. Venugopal, infomed the Rajya Sabha on Tuesday. The 12 {+t} {+h} Plan period runs till 2017.

These include four airports in Karnataka — Gulbarga, Bijapur, Hassan and Shimoga and two in Kerala — Aranmula and Kannur. In addition, another airport is to come up at Karaikal in Pondicherry, the Minister informed the House.

Besides one airport each are to come up in Shirdi, Navi Mumbai and Sindhudurg in Maharashtra, while Itanagar in Arunachal Pradesh will also get an airport.

Source: Business Line

NRIs

NRIs show interest in industrial plots

The dollars might just begin to flow in. This was the hope with which the state government decided to reserve 10% of industrial plots solely for the NRI clientele in its 2011 estate management policy. The move will “boost the inflow of foreign exchange in the country,” a government statement said.

To the relief of the policy makers here, the scheme finally has some takers. The Haryana State Industrial and Infrastructural Development Corporation (HSIIDC) announced the list of successful applicants for this allotment scheme recently, under which some 19 plots have been sold to NRIs across the state.

Many of the corporation’s under-development townships, like in Bawal, Rai, Saha and Panipat, had a number of plots up for allotment under the NRI quota. But the maximum figures were recorded in Faridabad, where 10 out of the 19 NRI allotments were made. Plots in both Gurgaon and Manesar failed to make it to the list.

“The final decisions were made last week at a meeting held by the NRI Plot Allotment Committee,” said an HSIIDC official, adding that the measurements of the plots allotted range between 450-1800 square metres. The 2011 policy amendment, that granted 10% reservation to NRI entrepreneurs, was followed by the constitution of a special Foreign Investment and NRI Cell, which is run by the HSIIDC in various districts.

Read more: The Times of India

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