Financial Inclusion gets a new definition
Mutual fund services at the door step of investor
Minimum risk to investors and will offer high degree of liquidity
Targeting to spread the Mutual Fund foot print to the hitherto uncovered small investors, Sahara Mutual Fund has planned to launch a Daily Fund with a minimum investment option of just Rs 10, and in multiples of one rupee, thereafter.
The path breaking Sahara Daily Fund is a Systematic Investment Plan which has the facility to collect even small amounts on a daily basis from prospective investors in the far flung areas by providing them collection service at their doorstep
Sahara AMC has just filed a draft offer document of Sahara Daily Fund with the regulator SEBI. ( http://www.sebi.gov.in/mfdp/saharadaily.pdf )
The investment objective of the Open-ended Scheme is to generate returns by investing mainly in debt and debt related instruments including money market instruments. The investment objective is planned with an intention to decrease the risk to minimum for the investors. The CRISIL Composite Bond Fund Index will be the benchmark for the Sahara Daily Fund. Moreover the scheme is proposed to be an open ended one so it can provide investors with a high degree of liquidity. Units may be purchased or redeemed on any business day on an ongoing basis from not later than 30 days after the close of New Fund Offer period, at NAV related price subject to prevailing Load, if any.
The Sahara Daily Fund is in line with the government and regulators in creased emphasis on financial inclusion. While financial inclusion as concept has covered the underprivileged section of the society with credit off-take, there is a huge section across the country that needs a savings product.
For instance, daily wage earners and self-employed with small shops or hand carts do need a convenient as well as an appropriate product suited to their savings needs which will also help reduce their dependence on credit in the future.
Organized sector employment presently comprises less than 10 per cent of the workforce, leaving the vast majority of the working population with irregular income streams and inadequate access to financial services/ products including cushion against unforeseen circumstances.
As per the investment objectives the Daily Fund, will identify securities, which offer superior levels of yield at low levels of risk.The Scheme may also invest in high quality Money Market Instruments.
This scheme is a trend setter in the mutual fund industry which provides opportunity to small investor to participate in the economic development and reap the fruits of financial inclusion as intended by the government.
Thursday, May 7, 2009
Monday, April 27, 2009
IDBI Fortis helps plan retirement with no crunch
• Offers a wide array of flexible investment options to ensure a comfortable paycheck during retirement
• Guaranteed loyalty additions, Tax benefits
MUMBAI: Targeting the Rs 35,000 crore pension plan market, IDBI Fortis Life Insurance today announced the launch of its innovative RetiresuranceTM Pension plan which will help its customer ensure a comfortable paycheck for themselves post retirement.
Launched only last year, IDBI Fortis Life Insurance, one of the fastest growing life insurance companies in India, has come out with WealthsuranceTM, BondsuranceTM and HomesuranceTM plans which have proved to be instant hits with its customers. With the RetiresuranceTM Pension Plan, the company aims to fulfill the needs of the current generation which may find the traditional pensions and gratuity benefits inadequate when they retire.
“With the rising costs of living and fluctuating fortunes, RetiresuranceTM Pension Plan will prove to be extremely useful after one’s retirement when one wants to continue to lead an un-restricted, happy life without having to face a cash crunch,” said Mr. G V Nageswara Rao, MD & CEO of IDBI Fortis Life Insurance.
“Earlier generations may not have had a formal retirement plan but they had relatively fewer consumption needs. It was rare to find people who had shifted through several jobs in the course of an active career. As a result, pensions and gratuities issued by their employers were deemed sufficient. Times have changed now, and in most contemporary industries, few employers provide for a life long pension,” Mr. Rao explained.
Sounding a note of caution, he said that managing finances during retirement would be extremely tough if one hasn’t planned for retirement. The best way to enjoy the good times even in your golden years would be to build your investments in advance for retirement.
The IDBI Fortis RetiresuranceTM Pension Plan allows the customer to choose the premium amount, frequency of payment and payment term, flexibility of reducing premiums within limits or adding top-up premiums as and when one wishes. It offers a wide choice of investment options to build a retirement corpus, such as equity linked funds for those with a high risk appetite and debt funds for those desiring relative stability. The customer also has the option to change his investment options from time to time and use this flexibility to take advantage of changing market conditions. The plan also offers liquidity through partial withdrawals and surrender. Furthermore, the customer also has the option to choose his vesting date (the date when one wants to start the retirement benefits) at any time between age 40 years to 75 years. All these features are with no additional cost to the customer.
IDBI Fortis RetiresuranceTM Pension Plan also boosts the investment returns for its customers through Guaranteed Loyalty Additions at the end of specific terms as an incentive for making long term investments.
Customers of this plan will enjoy tax savings under Sec 80 CCC. More over, one-third of the retirement corpus can be commuted tax free under Sec 10(10A) as well.
About IDBI Fortis:
IDBI Fortis Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Fortis Insurance International, a multinational insurance giant based out of Europe. In this venture, IDBI owns 48% equity while Federal Bank and Fortis own 26% equity each. IDBI Fortis launched its first set of products across India in March 2008, after receiving the requisite approvals from the Insurance Regulatory Development Authority (IRDA). At IDBI Fortis, we endeavor to deliver products that provide value and convenience to the customer. Through a continuous process of innovation in product and service delivery we intend to deliver world-class wealth management, protection and retirement solutions to Indian customers. In just five months of inception, we became one of the fastest growing new insurance companies to garner Rs 100 Cr in premiums. The company offers its services through a vast nationwide network across the branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners. As on March 31st 2009, the company had collected more than 320 Cr in premiums, through over 85,000 policies and over Rs 2,500Cr in Sum Assured. Do visit www.idbifortis.com to know more.
About the sponsors of IDBI Fortis Life Insurance Co Ltd
IDBI Bank Ltd. continues to be, since its inception, India’s premier industrial development bank. Created in 1956 to support India’s industrial backbone, IDBI Bank has since evolved into a powerhouse of industrial and retail finance. Today, it is amongst India’s foremost commercial banks, with a wide range of innovative products and services, serving retail and corporate customers in all corners of the country from over 537 branches and more than 915 ATMs. The Bank offers its customers an extensive range of diversified services including project financing, term lending, working capital facilities, lease finance, venture capital, loan syndication, corporate advisory services and legal and technical advisory services to its corporate clients as well as mortgages and personal loans to its retail clients. As part of its development activities, IDBI Bank has been instrumental in sponsoring the development of key institutions involved in India’s financial sector – such as the Securities and Exchange Board of India (SEBI), National Stock Exchange of India Limited (NSE) and National Securities Depository Ltd. Please visit www.idbibank.com to know more.
Federal Bank is one of India’s leading private sector banks, with a dominant presence in the state of Kerala. It has a strong network of over 600 branches and 500 ATMs spread across India. The bank provides over four million retail customers with a wide variety of financial products. Federal Bank is one of the first large Indian banks to have an entirely automated and interconnected branch network. They operate on the core banking platform and are RTGS/ NEFT enabled through which the Bank offers state-of-the-art technology enabled products and services. In addition to interconnected branches and ATMs, the Bank has a wide range of services like Internet Banking, Mobile Banking, Tele Banking, Any Where Banking, debit cards, co-branded credit cards, online bill payment and call centre facilities to offer round the clock banking convenience to its customers. The Bank has been a pioneer in providing innovative technological solutions to its customers and the Bank has won several awards and recommendations. Please visit www.federalbank.co.in to know more.
Fortis is an international insurance group composed of Insurance Belgium, a leader in life and non-life insurance in Belgium distributing its insurance products through the network of Fortis Bank and independent insurance brokers and Insurance International with subsidiaries in the UK, France, Hong Kong, Luxembourg (Non-life), Germany, Turkey, Russia and Ukraine, and joint ventures in Luxembourg (Life), Portugal, China, Malaysia, Thailand and India. Please visit www.fortis.com to know more.
• Guaranteed loyalty additions, Tax benefits
MUMBAI: Targeting the Rs 35,000 crore pension plan market, IDBI Fortis Life Insurance today announced the launch of its innovative RetiresuranceTM Pension plan which will help its customer ensure a comfortable paycheck for themselves post retirement.
Launched only last year, IDBI Fortis Life Insurance, one of the fastest growing life insurance companies in India, has come out with WealthsuranceTM, BondsuranceTM and HomesuranceTM plans which have proved to be instant hits with its customers. With the RetiresuranceTM Pension Plan, the company aims to fulfill the needs of the current generation which may find the traditional pensions and gratuity benefits inadequate when they retire.
“With the rising costs of living and fluctuating fortunes, RetiresuranceTM Pension Plan will prove to be extremely useful after one’s retirement when one wants to continue to lead an un-restricted, happy life without having to face a cash crunch,” said Mr. G V Nageswara Rao, MD & CEO of IDBI Fortis Life Insurance.
“Earlier generations may not have had a formal retirement plan but they had relatively fewer consumption needs. It was rare to find people who had shifted through several jobs in the course of an active career. As a result, pensions and gratuities issued by their employers were deemed sufficient. Times have changed now, and in most contemporary industries, few employers provide for a life long pension,” Mr. Rao explained.
Sounding a note of caution, he said that managing finances during retirement would be extremely tough if one hasn’t planned for retirement. The best way to enjoy the good times even in your golden years would be to build your investments in advance for retirement.
The IDBI Fortis RetiresuranceTM Pension Plan allows the customer to choose the premium amount, frequency of payment and payment term, flexibility of reducing premiums within limits or adding top-up premiums as and when one wishes. It offers a wide choice of investment options to build a retirement corpus, such as equity linked funds for those with a high risk appetite and debt funds for those desiring relative stability. The customer also has the option to change his investment options from time to time and use this flexibility to take advantage of changing market conditions. The plan also offers liquidity through partial withdrawals and surrender. Furthermore, the customer also has the option to choose his vesting date (the date when one wants to start the retirement benefits) at any time between age 40 years to 75 years. All these features are with no additional cost to the customer.
IDBI Fortis RetiresuranceTM Pension Plan also boosts the investment returns for its customers through Guaranteed Loyalty Additions at the end of specific terms as an incentive for making long term investments.
Customers of this plan will enjoy tax savings under Sec 80 CCC. More over, one-third of the retirement corpus can be commuted tax free under Sec 10(10A) as well.
About IDBI Fortis:
IDBI Fortis Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Fortis Insurance International, a multinational insurance giant based out of Europe. In this venture, IDBI owns 48% equity while Federal Bank and Fortis own 26% equity each. IDBI Fortis launched its first set of products across India in March 2008, after receiving the requisite approvals from the Insurance Regulatory Development Authority (IRDA). At IDBI Fortis, we endeavor to deliver products that provide value and convenience to the customer. Through a continuous process of innovation in product and service delivery we intend to deliver world-class wealth management, protection and retirement solutions to Indian customers. In just five months of inception, we became one of the fastest growing new insurance companies to garner Rs 100 Cr in premiums. The company offers its services through a vast nationwide network across the branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners. As on March 31st 2009, the company had collected more than 320 Cr in premiums, through over 85,000 policies and over Rs 2,500Cr in Sum Assured. Do visit www.idbifortis.com to know more.
About the sponsors of IDBI Fortis Life Insurance Co Ltd
IDBI Bank Ltd. continues to be, since its inception, India’s premier industrial development bank. Created in 1956 to support India’s industrial backbone, IDBI Bank has since evolved into a powerhouse of industrial and retail finance. Today, it is amongst India’s foremost commercial banks, with a wide range of innovative products and services, serving retail and corporate customers in all corners of the country from over 537 branches and more than 915 ATMs. The Bank offers its customers an extensive range of diversified services including project financing, term lending, working capital facilities, lease finance, venture capital, loan syndication, corporate advisory services and legal and technical advisory services to its corporate clients as well as mortgages and personal loans to its retail clients. As part of its development activities, IDBI Bank has been instrumental in sponsoring the development of key institutions involved in India’s financial sector – such as the Securities and Exchange Board of India (SEBI), National Stock Exchange of India Limited (NSE) and National Securities Depository Ltd. Please visit www.idbibank.com to know more.
Federal Bank is one of India’s leading private sector banks, with a dominant presence in the state of Kerala. It has a strong network of over 600 branches and 500 ATMs spread across India. The bank provides over four million retail customers with a wide variety of financial products. Federal Bank is one of the first large Indian banks to have an entirely automated and interconnected branch network. They operate on the core banking platform and are RTGS/ NEFT enabled through which the Bank offers state-of-the-art technology enabled products and services. In addition to interconnected branches and ATMs, the Bank has a wide range of services like Internet Banking, Mobile Banking, Tele Banking, Any Where Banking, debit cards, co-branded credit cards, online bill payment and call centre facilities to offer round the clock banking convenience to its customers. The Bank has been a pioneer in providing innovative technological solutions to its customers and the Bank has won several awards and recommendations. Please visit www.federalbank.co.in to know more.
Fortis is an international insurance group composed of Insurance Belgium, a leader in life and non-life insurance in Belgium distributing its insurance products through the network of Fortis Bank and independent insurance brokers and Insurance International with subsidiaries in the UK, France, Hong Kong, Luxembourg (Non-life), Germany, Turkey, Russia and Ukraine, and joint ventures in Luxembourg (Life), Portugal, China, Malaysia, Thailand and India. Please visit www.fortis.com to know more.
Saturday, April 25, 2009
Kirit Somaiya blows lid off multi-crore sugar scam
BJP leader and party Lok Sabha candidate from Mumbai North East Dr Kirit Somaiya has sought to blow the lid off a multi-thousand crore sugar scam and demanded an impartial probe by CBI.
Sugar prices have been sky rocketing thanks to the “faulty and lopsided” policies of the UPA government, Dr Somaiya pointed out the centre has been non-transparent and manipulative to say the least.
Explaining the dichotomy of the policies, Dr Somaiya explained that the government first allowed export of over 48 lakh tones of sugar last year at Rs 12 to Rs 13 per kg. Over and above, the private exporters were also given a subsidy of Rs 1.45 per hg. This all happened when the self-styled “Shetkari Raja” (King of farmers) declared that India was a sugar surplus country. The total consumption of Sugar is 230 lakh tonnes annually.
Most shockingly, and not too soon after, the govt. decided to import sugar, at a higher price of Rs. 22/- to 24/- per kg claiming shortage of the commodity. Now in February 2009, the Indian Govt. allowed duty free imports of white sugar up to 10 lakh tonnes and also decided to do away with export obligation for import.
All this has resulted in the sugar prices rocketing up from Rs. 18.50 per kg. in July 2008 to Rs. 26/- per kg. in April 2009.
As per the official record of the Consumer Affairs Ministry of the gov ernment of India, Sugar prices over the past few months are:
July 2008 : Rs. 18.50/- per kg
December 2008 : Rs. 21.50/- per kg.
January 2009 : Rs. 22.00/- per kg.
Feb/Mar 2009 : Rs. 24.00/- per kg
11 April 2009 : Rs. 26.00/- per kg.
The current retail price is around Rs 27 a kg.
The UPA government time and again has been claiming to be pursuing the cause of the Aam Admi, but its own ad-hoc policies on sugar have made the sugar “not so sweet” for the common man, Dr Somaiya said.
The sugar scam, coming as it does in the wake of the wheat scam, exposes the faulty policies of the UPA government, he explained. The UPA government stood exposed due to the import of sub-standard wheat causing havoc in the civic distribution system.
It was apparent that somebody somewhere must have reaped the benefit of the export-import scams. This must be thoroughly probed and culprits must be brought to book, whether the government, the sugar lob by or the sugar lobby representative in the government.
The UPA government policies have been helping only a particular section and rulers have shown scant respect for the common man, he said.
Sugar prices have been sky rocketing thanks to the “faulty and lopsided” policies of the UPA government, Dr Somaiya pointed out the centre has been non-transparent and manipulative to say the least.
Explaining the dichotomy of the policies, Dr Somaiya explained that the government first allowed export of over 48 lakh tones of sugar last year at Rs 12 to Rs 13 per kg. Over and above, the private exporters were also given a subsidy of Rs 1.45 per hg. This all happened when the self-styled “Shetkari Raja” (King of farmers) declared that India was a sugar surplus country. The total consumption of Sugar is 230 lakh tonnes annually.
Most shockingly, and not too soon after, the govt. decided to import sugar, at a higher price of Rs. 22/- to 24/- per kg claiming shortage of the commodity. Now in February 2009, the Indian Govt. allowed duty free imports of white sugar up to 10 lakh tonnes and also decided to do away with export obligation for import.
All this has resulted in the sugar prices rocketing up from Rs. 18.50 per kg. in July 2008 to Rs. 26/- per kg. in April 2009.
As per the official record of the Consumer Affairs Ministry of the gov ernment of India, Sugar prices over the past few months are:
July 2008 : Rs. 18.50/- per kg
December 2008 : Rs. 21.50/- per kg.
January 2009 : Rs. 22.00/- per kg.
Feb/Mar 2009 : Rs. 24.00/- per kg
11 April 2009 : Rs. 26.00/- per kg.
The current retail price is around Rs 27 a kg.
The UPA government time and again has been claiming to be pursuing the cause of the Aam Admi, but its own ad-hoc policies on sugar have made the sugar “not so sweet” for the common man, Dr Somaiya said.
The sugar scam, coming as it does in the wake of the wheat scam, exposes the faulty policies of the UPA government, he explained. The UPA government stood exposed due to the import of sub-standard wheat causing havoc in the civic distribution system.
It was apparent that somebody somewhere must have reaped the benefit of the export-import scams. This must be thoroughly probed and culprits must be brought to book, whether the government, the sugar lob by or the sugar lobby representative in the government.
The UPA government policies have been helping only a particular section and rulers have shown scant respect for the common man, he said.
Thursday, April 9, 2009
Zzebra bags “Most Promising PR Agency Award” from PRCI
MUMBAI, APRIL 08, 2009: The Public Relations Council of India (PRCI) has bestowed the “Most Promising PR Agency Award” on Zzebra PR Ltd at its 3rd Global Meet in Bangalore.
The two-day global PR meet titled “PRoactive” focused on the role of public relations and corporate communications with special emphasis on social issues, including communal disharmony, terrorism, social intolerance, global warming, female infanticide, financial chaos, corruption, traffic woes, and water scarcity, amongst others.
The five-year old Zzebra PR is part of Concept Communication, India’s largest independent agency group. Concept acquired a majority stake in Zzebra PR in 2008, acknowledging the company’s growth into a well-known brand delivering successful communication campaigns to a large number of corporate clients across industries, and leading events in the entertainment, lifestyle, sports, and social sectors.
CP Thomas, Managing Director, Zzebra PR Ltd said: “We are thankful to the Public Relations Council of India for recognizing the great work that we have delivered in a short span of time to a large number of happy clients. We are grateful to our clients who have provided us with an opportunity to work on their communication campaigns. Without their support we would not have been able to achieve the remarkable growth we have seen over the years. This Award is a tribute to the commitment and passion shown by our team who will now strive harder to attain greater heights.”
Zzebra built its foundation not just as a pure play public relations agency, but an integrated communication company which included research, content management, CSR and media relations as key enablers in delivering reputation management. Zzebra was one of the early providers of Online Reputation Management for corporate clients by launching social media communities as part of the communication strategy.
From a two-member team, Zzebra has now expanded to over 50 people with presence in multiple cities across the country, and has emerged as one of the leading communication agencies with clients who seek deep engagement, innovative ideas and excellent value.
For more details please contact:
Neha Parab: neha@zzebra.net / +91 98921 49465
Piya Dasgupta: piya@zzebra.net / +91 98900 32478
The two-day global PR meet titled “PRoactive” focused on the role of public relations and corporate communications with special emphasis on social issues, including communal disharmony, terrorism, social intolerance, global warming, female infanticide, financial chaos, corruption, traffic woes, and water scarcity, amongst others.
The five-year old Zzebra PR is part of Concept Communication, India’s largest independent agency group. Concept acquired a majority stake in Zzebra PR in 2008, acknowledging the company’s growth into a well-known brand delivering successful communication campaigns to a large number of corporate clients across industries, and leading events in the entertainment, lifestyle, sports, and social sectors.
CP Thomas, Managing Director, Zzebra PR Ltd said: “We are thankful to the Public Relations Council of India for recognizing the great work that we have delivered in a short span of time to a large number of happy clients. We are grateful to our clients who have provided us with an opportunity to work on their communication campaigns. Without their support we would not have been able to achieve the remarkable growth we have seen over the years. This Award is a tribute to the commitment and passion shown by our team who will now strive harder to attain greater heights.”
Zzebra built its foundation not just as a pure play public relations agency, but an integrated communication company which included research, content management, CSR and media relations as key enablers in delivering reputation management. Zzebra was one of the early providers of Online Reputation Management for corporate clients by launching social media communities as part of the communication strategy.
From a two-member team, Zzebra has now expanded to over 50 people with presence in multiple cities across the country, and has emerged as one of the leading communication agencies with clients who seek deep engagement, innovative ideas and excellent value.
For more details please contact:
Neha Parab: neha@zzebra.net / +91 98921 49465
Piya Dasgupta: piya@zzebra.net / +91 98900 32478
Tuesday, March 17, 2009
IDBI Fortis gets Rs 250 cr cap infusion
MUMBAI: Giving a boost to its business expansion plans, IDBI Fortis Life Insurance has announced a capital infusion of Rs 250 cr from its shareholders as per their share holding pattern.
IDBI Fortis launched its operations in March 2008 with an initial capital of Rs 200 cr leading with their innovative product, WealthsuranceTM, which has been its flagship product helping it race to over Rs. 2000 Cr of Sum Assured with over Rs 250 Cr of First Year Annual Premiums and over 62,000 policies issued in record time.
The company is targeting a network expansion drive to set up 100 branches across the country. In addition, IDBI Fortis also sells its products through the more than 1100 branches of its shareholder banks, IDBI and Federal Bank.
“The branch expansion drive is going on in full swing and we already have over 30 branches up and running in various states,” said Mr G.V. Nageswara Rao, MD and CEO, IDBI Fortis Life Insurance. “IDBI Fortis is committed to providing comprehensive investment and insurance solutions through innovative products, well-trained sales force and high standards of service.”
IDBI Fortis Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Fortis Insurance International, a multinational insurance giant based out of Europe. IDBI Bank owns 48% equity while Federal Bank and Fortis own 26% equity each. Visit www.idbifortis.com to know more.
IDBI Fortis has managed to launch an array of innovative products from its stable.
Its flagship product, WealthsuranceTM Foundation Plan is a unique combination that is termed as an Insured Wealth Plan that aims to provide people a growing wealth plan protected by the benefits of insurance. With comprehensive investment choices, protected by powerful insurance options, all presented with a reasonable charge structure, Wealthsurance is a one-stop solution to a customer’s wealth building plans. The product is designed to ensure that the hard-earned money that is invested is not susceptible to unforeseen circumstances. WealthsuranceTM offers investment choices such as Guaranteed Return Fund, Capital Guaranteed Fund, Monthly Interest Account, Equity Funds, Debt Funds, Asset Allocator Funds etc. ensuring that the customer would find all his investment requirements satisfied with this one powerful product. The powerful insurance benefits of WealthsuranceTM ensure that a customer’s wealth plan is not affected by unforeseen events that may strike them.
With the recent popularity for guaranteed return products, the company launched a unique product, BondsuranceTM that offers tax-free assured returns with life cover.
With the innovative HomesuranceTM Protection Plan, customers can now cover the changing liability that comes with a typical floating rate home loan, along with an optional cover where they can pay off the home loan even in the unfortunate event of any major disease or other unforeseen circumstances.
The fresh capital infusion will also help IDBI Fortis in meeting the solvency requirements and expanding operations due to increased sales besides launching new products and branches.
Friday, March 13, 2009
Reliance Money Exp acquires UK's No 1 Currency
Mumbai, March 13, 2009: Reliance Money Express, part of the Reliance Anil Dhirubhai Ambani Group, today announced that, the company would acquire 51 per cent of No1 Currency, the UK’s fastest growing independent foreign currency specialist.
The announcement was made by Mr. Sudip Bandyopadhyay, Director & CEO, Reliance Money Express here today.
Reliance Money Express plans to acquire a 51 per cent stake in No1 Currency, subject to appropriate approvals. It is the first Indian company to acquire an international foreign exchange company.
“While looking for opportunities to widen our services internationally, we found that No1 Currency offered a strong proposition both in terms of synergy and added value. As one of India’s leading FOREX players, we were impressed with No1 Currency's approach to business and the valuable services which they provide to individual customers and businesses,” said Mr. Bandyopadhyay.
As the UK’s fastest growing foreign currency specialist, No1 Currency provides safe and secure worldwide transfers and Bureau de Change services. Its Bureau de Change is one of the largest chains of bureaux in the UK with over 295 outlets in a variety of stores and locations throughout the UK.
Commenting on the acquisition, Mr. Mark McElney, Managing Director, No1 Currency said, “We are delighted to have Reliance Money Express as a large shareholder in our company and on becoming a part of the Reliance Anil Dhirubhai Ambani Group.”
“The synergy between No1 Currency and Reliance Money Express will open up new and exciting opportunities for business growth,” Mr. McElney continued, “No1 Currency already has a rapidly expanding network of 295 Bureau de Changes throughout the UK, however this alliance will present development opportunities for No1 Currency to lead Reliance ADAG into the European market.”
No1 Currency has a dedicated team of foreign currency specialists who provide a professional and tailored approach to all customers regardless of the amount or regularity of exchanges.
“This acquisition will mark our foray into the international foreign exchange arena. We plan to build synergies between both the companies thereby capitalizing the growth potential of the foreign exchange business.” added Mr. Bandyopadhyay.
Last year, Reliance Money Express acquired a majority stake in Wall Street Finance. It has become the largest private sector player in the remittance business in India.
About Reliance Money
www.reliancemoney.com
Reliance Money, a part of the Reliance Anil Dhirubhai Ambani Group is a comprehensive financial services and solution provider, providing customers with access to Equity, Equity and Commodity Derivatives, Portfolio Management Services, Wealth Management Services, Mutual Funds, IPOs, Life and General Insurance and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services.
The largest broking house in India with 3 million customers and a wide network of over 10,000 outlets and 20,000 touch points in 5,000+ locations. Reliance Money endeavors to change the way investors transact in financial markets and avails financial services. The average daily volume on the stock exchanges is Rs. 3,000 crores, representing approximately 4% of the total stock exchange volume.
Reliance Capital is one of India's leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking groups, in terms of net worth.
About No1 Currency
www.no1currency.com
Founded in 1996, Edinburgh-based No1 Currency is the UK’s fastest growing independent foreign currency specialist. No1 Currency is accessible to all, providing safe and secure worldwide money transfers for individuals and corporate clients, as well as competitive Bureau de Change services. No1 Currency offer a range of products to cover corporate clients currency needs, from immediate Spot Price contracts to longer-term Forward and Time-Option Forward contacts, as well as a Limit or Stop Loss Order which protects businesses from adverse currency movements. No1 Currency Bureau de Change is one of the largest chains of bureaux in the UK, with 295 outlets across the UK offering 0% commission on currency exchanges. In 2008 No1 Currency was short-listed for the Ernst and Young Entrepreneur of the Year 2008 prize. For two years running No1 Currency has been listed as a Sunday Times Fast Track 100, making 54th place in 2008. With plans for further growth including doubling size of its Bureau de Change network over the next year and building a greater market in the UK and Europe, this Edinburgh-based Foreign Currency Specialist is paving the way to become a global leader.
The announcement was made by Mr. Sudip Bandyopadhyay, Director & CEO, Reliance Money Express here today.
Reliance Money Express plans to acquire a 51 per cent stake in No1 Currency, subject to appropriate approvals. It is the first Indian company to acquire an international foreign exchange company.
“While looking for opportunities to widen our services internationally, we found that No1 Currency offered a strong proposition both in terms of synergy and added value. As one of India’s leading FOREX players, we were impressed with No1 Currency's approach to business and the valuable services which they provide to individual customers and businesses,” said Mr. Bandyopadhyay.
As the UK’s fastest growing foreign currency specialist, No1 Currency provides safe and secure worldwide transfers and Bureau de Change services. Its Bureau de Change is one of the largest chains of bureaux in the UK with over 295 outlets in a variety of stores and locations throughout the UK.
Commenting on the acquisition, Mr. Mark McElney, Managing Director, No1 Currency said, “We are delighted to have Reliance Money Express as a large shareholder in our company and on becoming a part of the Reliance Anil Dhirubhai Ambani Group.”
“The synergy between No1 Currency and Reliance Money Express will open up new and exciting opportunities for business growth,” Mr. McElney continued, “No1 Currency already has a rapidly expanding network of 295 Bureau de Changes throughout the UK, however this alliance will present development opportunities for No1 Currency to lead Reliance ADAG into the European market.”
No1 Currency has a dedicated team of foreign currency specialists who provide a professional and tailored approach to all customers regardless of the amount or regularity of exchanges.
“This acquisition will mark our foray into the international foreign exchange arena. We plan to build synergies between both the companies thereby capitalizing the growth potential of the foreign exchange business.” added Mr. Bandyopadhyay.
Last year, Reliance Money Express acquired a majority stake in Wall Street Finance. It has become the largest private sector player in the remittance business in India.
About Reliance Money
www.reliancemoney.com
Reliance Money, a part of the Reliance Anil Dhirubhai Ambani Group is a comprehensive financial services and solution provider, providing customers with access to Equity, Equity and Commodity Derivatives, Portfolio Management Services, Wealth Management Services, Mutual Funds, IPOs, Life and General Insurance and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services.
The largest broking house in India with 3 million customers and a wide network of over 10,000 outlets and 20,000 touch points in 5,000+ locations. Reliance Money endeavors to change the way investors transact in financial markets and avails financial services. The average daily volume on the stock exchanges is Rs. 3,000 crores, representing approximately 4% of the total stock exchange volume.
Reliance Capital is one of India's leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking groups, in terms of net worth.
About No1 Currency
www.no1currency.com
Founded in 1996, Edinburgh-based No1 Currency is the UK’s fastest growing independent foreign currency specialist. No1 Currency is accessible to all, providing safe and secure worldwide money transfers for individuals and corporate clients, as well as competitive Bureau de Change services. No1 Currency offer a range of products to cover corporate clients currency needs, from immediate Spot Price contracts to longer-term Forward and Time-Option Forward contacts, as well as a Limit or Stop Loss Order which protects businesses from adverse currency movements. No1 Currency Bureau de Change is one of the largest chains of bureaux in the UK, with 295 outlets across the UK offering 0% commission on currency exchanges. In 2008 No1 Currency was short-listed for the Ernst and Young Entrepreneur of the Year 2008 prize. For two years running No1 Currency has been listed as a Sunday Times Fast Track 100, making 54th place in 2008. With plans for further growth including doubling size of its Bureau de Change network over the next year and building a greater market in the UK and Europe, this Edinburgh-based Foreign Currency Specialist is paving the way to become a global leader.
Tuesday, March 3, 2009
Indian Economy on road to turnaround
by Ashok Handoo*
Is the Indian economy showing early signs of revival or a turnaround? It may be too early to say yes, but the figures thrown up in recent days certainly point to that. And that should be good news for the managers of the Indian economy. Despite that there is no room for complacency as the challenges ahead are indeed, enormous.
Let us first talk of the turnaround indicators. The official data shows that the cement sector has grown 9.97 percent in December 2008 as compared to November and the year on year increase is 11%. Steel, which declined from September onwards last year, has shown a recovery in December last and January this year. It has now touched 22.86 million metric tones, a figure it achieved in May 2008 when the sectoral growth rate was 4.1%. This may not be quite impressive but the very fact that the sector is growing is a matter of some satisfaction. Passenger vehicles grew at 32% in January 2009 compared to December 2008. Commercial vehicles grew at 23%. These are all encouraging signs.
Job losses are an area of immense concern to all of us. Labour Minister Oscar Fernades informed Parliament recently that half a million jobs had been lost in India due to the economic slowdown. That certainly is a cause of concern. But there is a silver lining too. A recent survey conducted by the HR consultancy firm Hewitt says that less than 13% companies in India were considering retrenchment while 60 % are still hiring. India is at the lowest of the ladder of layoffs, with the US topping the list at 55 %. It is followed by China at 30.6%. Japan, Korea, Singapore and Malaysia also are higher up in the ladder.
On the other hand, the survey shows that India is at the top of the ladder with 8.2% in year on year projected salary hike in Asia- Pacific. Even the US and Japan are expected to have a salary hike of only 3.2 % and 2.3 % this financial year. The projected salary hike is indeed far less than 13.3 % India witnessed in 2008 but in these hard days the picture is not all that gloomy. Hewitt says the survey was conducted in December and January for 480 Indian companies.
Finance Minister Pranab Mukherjee has already urged the Indian Industry not to cut down on jobs and salary cuts could instead be effected to tide over the present turmoil.
By all accounts therefore, the pro-active fiscal and monetary measures taken by the Government and the Reserve Bank of India seem to be showing results. But there is a long, long way to go.
Clearly, the key to deal with the present economic crisis is to increase demand domestically, as we have no control on the demand in other countries which are facing a far worse situation than we do. This is precisely why Indian exports have been suffering a big blow as the US, UK the European countries and Japan, which account for more than half of India’s exports, are in the grip of a recession. The downside is that we may have to wait longer than expected in the export sector until these economies revive.
That also explains why the Government is focusing on stimulating domestic demand by ensuring flow of credit to trade, industry, investment in Infrastructure, Housing and Real Estate. Flagship programmes like NREGS and Bharat Nirman too are being allocated adequate resources. But as Shri Pranab Mukherjee pointed out, this is a global crisis and “Global crisis requires a global response and India is playing its own role in fashioning it.”
The Government, on its part, has been injecting huge amounts into the system through stimulus packages and duty cuts. The 3rd package announced by the Finance Minister in Parliament means pumping another 29,000 crore into the system by way of duty cuts in excise and customs as well as service tax. He also announced that the 4% cut in central excise duties made in December 2008, would continue for the next fiscal as well. In the interim Budget also, Shri Mukherjee projected higher spending in the next fiscal year.
The RBI too has reduced the CRR, the portion of deposits banks are required to keep with the RBI, from 9 percent to 5% during the last 4 months. The Repo Rate, at which RBI lends cash to banks, too has been cut 4 times to 5.5%. The reverse repo rate has also been brought down from 6 to 4 percent.
The question now is whether these rates can be further reduced to put more liquidity in the system. The RBI Governor D. Subbarao says there certainly is room for rate cuts. It is now considering whether the rates should be cut, when and by how much.
Fortunately, the situation on the Inflation front is encouraging. The latest figures show that it has dipped to below 4%, 3.92% to be precise, and is heading towards a further fall in the days ahead. It is estimated to touch the low of 2% by the end of current financial year and continue to fall further, thereafter. So, there is no price pressure on the government to work against pumping more money into the system. Despite this one has to take note of Shri Pranab Mukherjee’s words of caution while presenting the interim Budget. “We have weathered the crisis (from inflation) but there is no room for complacency.” The fiscal deficit which was initially estimated to be around 2.5 percent of the GDP is now likely to be in the range of 6% and could thus be a record high in seven years. Higher deficit has also increased government’s borrowing target from Rs. 2.61 trillion to Rs. 3.06 trillion.
The effect of the global recession on India has been “much sharper” than expected. It therefore calls for more measures to stem the tide of low growth and layoffs. The figures reveled by the Central Statistical Organization say that the Indian economy will grow by 7.1% in the current financial year against 9 percent in the three previous years. The Deputy Chief of the Planning Commission Shri Montek Singh Ahluwalia believes that it would continue to grow at 7 percent in the next fiscal as well despite the impact of the global financial crisis. Some economists however feel that it may come down to 6 percent.
On balance, the economic situation does seem to be looking up. Things are better than what it was 2 months ago. As Shri Ahluwalia puts it “banks are now willing to lend to good companies with a strong financial position. What is now needed is to get credit flowing to the lot of companies in the middle.” The risk perception in banks, which is very high at this point of time, must go. That may, however take some time. Boosting of demand and investment continue to remain the mantra to deal with the current economic crisis.(PIB Feature)
(Disclaimer : The views expressed by the author in this feature are entirely his own and do not necessarily reflect the views of PIB)
Is the Indian economy showing early signs of revival or a turnaround? It may be too early to say yes, but the figures thrown up in recent days certainly point to that. And that should be good news for the managers of the Indian economy. Despite that there is no room for complacency as the challenges ahead are indeed, enormous.
Let us first talk of the turnaround indicators. The official data shows that the cement sector has grown 9.97 percent in December 2008 as compared to November and the year on year increase is 11%. Steel, which declined from September onwards last year, has shown a recovery in December last and January this year. It has now touched 22.86 million metric tones, a figure it achieved in May 2008 when the sectoral growth rate was 4.1%. This may not be quite impressive but the very fact that the sector is growing is a matter of some satisfaction. Passenger vehicles grew at 32% in January 2009 compared to December 2008. Commercial vehicles grew at 23%. These are all encouraging signs.
Job losses are an area of immense concern to all of us. Labour Minister Oscar Fernades informed Parliament recently that half a million jobs had been lost in India due to the economic slowdown. That certainly is a cause of concern. But there is a silver lining too. A recent survey conducted by the HR consultancy firm Hewitt says that less than 13% companies in India were considering retrenchment while 60 % are still hiring. India is at the lowest of the ladder of layoffs, with the US topping the list at 55 %. It is followed by China at 30.6%. Japan, Korea, Singapore and Malaysia also are higher up in the ladder.
On the other hand, the survey shows that India is at the top of the ladder with 8.2% in year on year projected salary hike in Asia- Pacific. Even the US and Japan are expected to have a salary hike of only 3.2 % and 2.3 % this financial year. The projected salary hike is indeed far less than 13.3 % India witnessed in 2008 but in these hard days the picture is not all that gloomy. Hewitt says the survey was conducted in December and January for 480 Indian companies.
Finance Minister Pranab Mukherjee has already urged the Indian Industry not to cut down on jobs and salary cuts could instead be effected to tide over the present turmoil.
By all accounts therefore, the pro-active fiscal and monetary measures taken by the Government and the Reserve Bank of India seem to be showing results. But there is a long, long way to go.
Clearly, the key to deal with the present economic crisis is to increase demand domestically, as we have no control on the demand in other countries which are facing a far worse situation than we do. This is precisely why Indian exports have been suffering a big blow as the US, UK the European countries and Japan, which account for more than half of India’s exports, are in the grip of a recession. The downside is that we may have to wait longer than expected in the export sector until these economies revive.
That also explains why the Government is focusing on stimulating domestic demand by ensuring flow of credit to trade, industry, investment in Infrastructure, Housing and Real Estate. Flagship programmes like NREGS and Bharat Nirman too are being allocated adequate resources. But as Shri Pranab Mukherjee pointed out, this is a global crisis and “Global crisis requires a global response and India is playing its own role in fashioning it.”
The Government, on its part, has been injecting huge amounts into the system through stimulus packages and duty cuts. The 3rd package announced by the Finance Minister in Parliament means pumping another 29,000 crore into the system by way of duty cuts in excise and customs as well as service tax. He also announced that the 4% cut in central excise duties made in December 2008, would continue for the next fiscal as well. In the interim Budget also, Shri Mukherjee projected higher spending in the next fiscal year.
The RBI too has reduced the CRR, the portion of deposits banks are required to keep with the RBI, from 9 percent to 5% during the last 4 months. The Repo Rate, at which RBI lends cash to banks, too has been cut 4 times to 5.5%. The reverse repo rate has also been brought down from 6 to 4 percent.
The question now is whether these rates can be further reduced to put more liquidity in the system. The RBI Governor D. Subbarao says there certainly is room for rate cuts. It is now considering whether the rates should be cut, when and by how much.
Fortunately, the situation on the Inflation front is encouraging. The latest figures show that it has dipped to below 4%, 3.92% to be precise, and is heading towards a further fall in the days ahead. It is estimated to touch the low of 2% by the end of current financial year and continue to fall further, thereafter. So, there is no price pressure on the government to work against pumping more money into the system. Despite this one has to take note of Shri Pranab Mukherjee’s words of caution while presenting the interim Budget. “We have weathered the crisis (from inflation) but there is no room for complacency.” The fiscal deficit which was initially estimated to be around 2.5 percent of the GDP is now likely to be in the range of 6% and could thus be a record high in seven years. Higher deficit has also increased government’s borrowing target from Rs. 2.61 trillion to Rs. 3.06 trillion.
The effect of the global recession on India has been “much sharper” than expected. It therefore calls for more measures to stem the tide of low growth and layoffs. The figures reveled by the Central Statistical Organization say that the Indian economy will grow by 7.1% in the current financial year against 9 percent in the three previous years. The Deputy Chief of the Planning Commission Shri Montek Singh Ahluwalia believes that it would continue to grow at 7 percent in the next fiscal as well despite the impact of the global financial crisis. Some economists however feel that it may come down to 6 percent.
On balance, the economic situation does seem to be looking up. Things are better than what it was 2 months ago. As Shri Ahluwalia puts it “banks are now willing to lend to good companies with a strong financial position. What is now needed is to get credit flowing to the lot of companies in the middle.” The risk perception in banks, which is very high at this point of time, must go. That may, however take some time. Boosting of demand and investment continue to remain the mantra to deal with the current economic crisis.(PIB Feature)
(Disclaimer : The views expressed by the author in this feature are entirely his own and do not necessarily reflect the views of PIB)
Saturday, February 21, 2009
Indian IT, ITeS sector shows healthy growth despite slowdown
The Indian IT and ITeS sector continues to maintain healthy growth rate despite the economic slowdown and global financial crisis. With the annual growth rate of the IT companies remaining above 20 per cent, no major adverse impact of the slowdown is expected on this sector.
The total software and services export is estimated at US $ 40.4 billion in 2007-08 as compared to US $ 12.9 billion in 2003-04. During the year 2008-09, it is expected that the employment in the IT/ITeS industry would grow from 20 lakh to 22.3 lakh.
FDI (Foreign Direct investment) in computer software and hardware too has shown phenomenal growth. During the first six months of the current fiscal year (April-September 2008), FDI inflow in IT sector has already reached US $ 1.4 billion against the same level of FDI inflow during the whole of previous year.
Seventeen proposals, involving an investment of the order of Rs.1,57,000 crore have been received over a period of 10 years under the Special Incentive Package Scheme (SIPS). The Scheme, which aims at encouraging investments for setting up semiconductor fabrication and other micro and nano technology industries in the country, has received a positive response from prospective investors.
The total software and services export is estimated at US $ 40.4 billion in 2007-08 as compared to US $ 12.9 billion in 2003-04. During the year 2008-09, it is expected that the employment in the IT/ITeS industry would grow from 20 lakh to 22.3 lakh.
FDI (Foreign Direct investment) in computer software and hardware too has shown phenomenal growth. During the first six months of the current fiscal year (April-September 2008), FDI inflow in IT sector has already reached US $ 1.4 billion against the same level of FDI inflow during the whole of previous year.
Seventeen proposals, involving an investment of the order of Rs.1,57,000 crore have been received over a period of 10 years under the Special Incentive Package Scheme (SIPS). The Scheme, which aims at encouraging investments for setting up semiconductor fabrication and other micro and nano technology industries in the country, has received a positive response from prospective investors.
Friday, February 13, 2009
Railways to invest Rs 2.3 lakh cr in 11th Plan
The Railways have deployed their investible surplus of nearly Rs. 70,000 crore earned between 2004-05 to 2008-09 to increase its productivity.
Announcing this while presenting the Interim Railway Budget 2009-10 in the Lok Sabha today, Railway Minister Lalu Prasad said that Railways will invest Rs.2,30,000 crore under the 11th Five Year Plan which is almost three times the amount allocated in the 10th Five Year Plan.
The Minister said that the objective of larger investment is to increase the transport capacity of the Railways and to reduce the unit cost of operations. Railways’ investment outlays have been stepped up from Rs.13,394 crore in 2003-04 to Rs. 36,773 crore in 2008-09.
Lalu Prasad also announced that Railways would be completing the work of 4900 kms of gauge conversion, 1800 kms of doubling and laying 1100 kms of new lines, over five years.
Announcing this while presenting the Interim Railway Budget 2009-10 in the Lok Sabha today, Railway Minister Lalu Prasad said that Railways will invest Rs.2,30,000 crore under the 11th Five Year Plan which is almost three times the amount allocated in the 10th Five Year Plan.
The Minister said that the objective of larger investment is to increase the transport capacity of the Railways and to reduce the unit cost of operations. Railways’ investment outlays have been stepped up from Rs.13,394 crore in 2003-04 to Rs. 36,773 crore in 2008-09.
Lalu Prasad also announced that Railways would be completing the work of 4900 kms of gauge conversion, 1800 kms of doubling and laying 1100 kms of new lines, over five years.
Thursday, February 12, 2009
Delhi-Mumbai industrial corridor takes shape
NEW DELHI:President Pratibha Devisingh Patil today said the Government has constituted the Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) for developing an industrial corridor along the Dedicated Railway Freight Corridor between Delhi and Mumbai.
Addrtessing the joint session of Parliament, she said the proposed industrial corridor will pass through six States of the country and infrastructure facilities will be developed at identified locations in consultation with the States concerned.
The Government has also come out with a new policy for promoting investment in Petroleum, Chemicals and Petrochemicals sector through development of Investment Regions. Significant progress has been made towards setting up Petroleum, Chemicals and Petrochemical Investment Regions in Andhra Pradesh, Gujarat and West Bengal.
Recognising that rapid growth in industry and services is essential to provide the avenues for employment required by our youth, the Union government has put in place appropriate policies which have promoted growth and employment opportunities.
"In particular, my government enacted the Special Economic Zones Act, which has already facilitated incremental investment of Rs.90,000 crore, and generated direct and indirect employment for over 7 lakh persons," she said.
Addrtessing the joint session of Parliament, she said the proposed industrial corridor will pass through six States of the country and infrastructure facilities will be developed at identified locations in consultation with the States concerned.
The Government has also come out with a new policy for promoting investment in Petroleum, Chemicals and Petrochemicals sector through development of Investment Regions. Significant progress has been made towards setting up Petroleum, Chemicals and Petrochemical Investment Regions in Andhra Pradesh, Gujarat and West Bengal.
Recognising that rapid growth in industry and services is essential to provide the avenues for employment required by our youth, the Union government has put in place appropriate policies which have promoted growth and employment opportunities.
"In particular, my government enacted the Special Economic Zones Act, which has already facilitated incremental investment of Rs.90,000 crore, and generated direct and indirect employment for over 7 lakh persons," she said.
Wednesday, February 11, 2009
Praful warns againsr air cartels
Civilviation Minister Praful Patel today came out strongly against reports of cartelization amongst airlines.
The Minister said, “The Ministry is against any categorization among airlines. We will keep watch and take strict action in any such case. The national carrier Air India will never be a part of it and will ensure that competitive pricing ensures better prices to the passengers."
He declared:"Air India shall act as a counter with better pricing and competitive fares.”
The Minister said, “The Ministry is against any categorization among airlines. We will keep watch and take strict action in any such case. The national carrier Air India will never be a part of it and will ensure that competitive pricing ensures better prices to the passengers."
He declared:"Air India shall act as a counter with better pricing and competitive fares.”
Tuesday, February 10, 2009
Sahara Power: Mega plants coming
Sahara India Power Corporation Limited, the subsidiary of Sahara India Pariwar's real estate company Sahara Prime City Limited signed Memorandum of Understanding (MOU) with the Government of Orissa for setting up a 1320 MW (2 x 660) Coal Based Thermal Power Plant in Turla Tehsil of Balangir District, Orissa at an investment of about Rs.5604 Cr.
The MoU was signed by Mr. Pradeep Jena, Commissioner Cum Secretary - Power, on behalf of the Government of Orissa and Mr. Ashok K Bhargava, Chief Advisor and Head – Sahara Power Projects, in the presence of the Hon'ble Chief Minister of Orissa, Shri Naveen Patnaik and other distinguished dignitaries and officials.
To be built on an area of 1,500 acres, the Sahara Power's Turla plant is planned to commission its first Unit of 660 MW by February 2013 while the second unit of 660 MW is expected to be commissioned within 6 to 8 months thereafter. The plant is planned to be set up through Joint Venture Participation with Power Companies from different parts of the world.
Sahara India Power Corporation Limited will develop fuel based or non conventional power plants using the latest and emerging technologies. Sahara Power will set up a 5 MW Grid Interactive Solar Photo Voltaic Power Plant in Dhenkanal District of Orissa at an estimated investment of about Rs. 125 Cr. The Company has already received an in-principle approval from the Government of Orissa through M/s Orissa Renewable Energy Development Agency (OREDA). Sahara Power has tied up with M/s Solar Integrated Technologies Inc. (SIT) USA, as its strategic partner for supply and installation of the required plant and equipment.
In addition, Sahara Power is also planning to set up 25 MW of Wind Power projects in Orissa through a reputed Wind Energy Company which has already set up wind masts at 7 locations. The company plans to proceed with the project once it receives data, gathered by the masts in next 6 to 9 months.
Sahara India Power Corporation Limited has also proposed to set up a 2000 MW Coal based power plants in Jharkhand and Chhattisgarh at an estimated investment of Rs. 8000 Cr. each.
On this occasion Mr. Ashok K Bhargava said, "We extend our sincere gratitude to the Government of Orissa for their kind support, cooperation extended to us at all levels of our efforts to initiate the power projects in the state. We are confident that our project will not only serve the Energy requirement of the state and the country but will also bring in all round integrated development in the region of Turla district."
Sahara India Pariwar, considered as one of the most socially responsible corporates of the country, has plans, along with the setting up of the Mega Power Plant, to contribute to the welfare of the people of the Balangir district. The group with the aim of improving the quality of life of the local populace will develop pucca roads in the projects vicinity, make provision for potable drinking water and will also set up primary health and education centre. The Power Plant and its related infrastructure shall further attract investment in the region by Corporate Houses and Entrepreneurs in the Manufacturing, Real Estate, Service Sectors etc. by setting up of establishments, amenities and facilities, including Ancillaries and SMEs.
Commenting on the signing of the MoU Mr. Sushanto Roy, Head – Infrastructure & Housing, Sahara Prime City Limited, said, "It is a moment of great pride for all of us at Sahara India Pariwar as we have joined hands to fulfill the power requirements of the nation. Power Sector also holds a huge business opportunity and we have forward integrated plans to be a major player in all the segments including power generation through conventional and renewable resources, power transmission & distribution, power trading, manufacturing of power equipments etc."
More on Sahara:
• Sahara India Power Corporation Ltd is a 100% subsidiary of Sahara Prime City Limited, the real estate Company of Sahara India Pariwar.
• Sahara Prime City Limited has developed commercial and residential projects which includes townships, premium group housing projects, hospitals, hotels, among other projects.
• The flagship project of SPCL is 'Sahara City Homes', a chain of townships to be developed across 217 cities in India.
• The other projects of SPCL are 'Sahara Star', a luxurious 5 star Deluxe Hotel located near the Domestic Airport in Mumbai, and a 554 bedded Super Specialty, Multi-Disciplinary, Tertiary Care Sahara Hospital in Lucknow.
• Sahara Power was set up in 2001 with the aim to provide reliable and continuous power supply to 'Sahara City Homes'. Each project of Sahara City Homes will need 30 MW of dedicated power, aggregating over 6000 MW.
The MoU was signed by Mr. Pradeep Jena, Commissioner Cum Secretary - Power, on behalf of the Government of Orissa and Mr. Ashok K Bhargava, Chief Advisor and Head – Sahara Power Projects, in the presence of the Hon'ble Chief Minister of Orissa, Shri Naveen Patnaik and other distinguished dignitaries and officials.
To be built on an area of 1,500 acres, the Sahara Power's Turla plant is planned to commission its first Unit of 660 MW by February 2013 while the second unit of 660 MW is expected to be commissioned within 6 to 8 months thereafter. The plant is planned to be set up through Joint Venture Participation with Power Companies from different parts of the world.
Sahara India Power Corporation Limited will develop fuel based or non conventional power plants using the latest and emerging technologies. Sahara Power will set up a 5 MW Grid Interactive Solar Photo Voltaic Power Plant in Dhenkanal District of Orissa at an estimated investment of about Rs. 125 Cr. The Company has already received an in-principle approval from the Government of Orissa through M/s Orissa Renewable Energy Development Agency (OREDA). Sahara Power has tied up with M/s Solar Integrated Technologies Inc. (SIT) USA, as its strategic partner for supply and installation of the required plant and equipment.
In addition, Sahara Power is also planning to set up 25 MW of Wind Power projects in Orissa through a reputed Wind Energy Company which has already set up wind masts at 7 locations. The company plans to proceed with the project once it receives data, gathered by the masts in next 6 to 9 months.
Sahara India Power Corporation Limited has also proposed to set up a 2000 MW Coal based power plants in Jharkhand and Chhattisgarh at an estimated investment of Rs. 8000 Cr. each.
On this occasion Mr. Ashok K Bhargava said, "We extend our sincere gratitude to the Government of Orissa for their kind support, cooperation extended to us at all levels of our efforts to initiate the power projects in the state. We are confident that our project will not only serve the Energy requirement of the state and the country but will also bring in all round integrated development in the region of Turla district."
Sahara India Pariwar, considered as one of the most socially responsible corporates of the country, has plans, along with the setting up of the Mega Power Plant, to contribute to the welfare of the people of the Balangir district. The group with the aim of improving the quality of life of the local populace will develop pucca roads in the projects vicinity, make provision for potable drinking water and will also set up primary health and education centre. The Power Plant and its related infrastructure shall further attract investment in the region by Corporate Houses and Entrepreneurs in the Manufacturing, Real Estate, Service Sectors etc. by setting up of establishments, amenities and facilities, including Ancillaries and SMEs.
Commenting on the signing of the MoU Mr. Sushanto Roy, Head – Infrastructure & Housing, Sahara Prime City Limited, said, "It is a moment of great pride for all of us at Sahara India Pariwar as we have joined hands to fulfill the power requirements of the nation. Power Sector also holds a huge business opportunity and we have forward integrated plans to be a major player in all the segments including power generation through conventional and renewable resources, power transmission & distribution, power trading, manufacturing of power equipments etc."
More on Sahara:
• Sahara India Power Corporation Ltd is a 100% subsidiary of Sahara Prime City Limited, the real estate Company of Sahara India Pariwar.
• Sahara Prime City Limited has developed commercial and residential projects which includes townships, premium group housing projects, hospitals, hotels, among other projects.
• The flagship project of SPCL is 'Sahara City Homes', a chain of townships to be developed across 217 cities in India.
• The other projects of SPCL are 'Sahara Star', a luxurious 5 star Deluxe Hotel located near the Domestic Airport in Mumbai, and a 554 bedded Super Specialty, Multi-Disciplinary, Tertiary Care Sahara Hospital in Lucknow.
• Sahara Power was set up in 2001 with the aim to provide reliable and continuous power supply to 'Sahara City Homes'. Each project of Sahara City Homes will need 30 MW of dedicated power, aggregating over 6000 MW.
Monday, February 9, 2009
IDBI Fortis Plan - Inherit Home, Not Home Loan!
•Unique cover on home loans to absorb impact of interest fluctuations
•Plan ensures you inherit home, not a home loan
•Competitive premiums & comprehensive tax benefits
MUMBAI, February 09, 2009: Striving to ensure that families inherit homes and not the burden of home loans, IDBI Fortis Life Insurance today announced the launch of its unique Homesurance Protection Plan.
Homesurance Protection Plan is a mortgage reducing term insurance plan that secures the policy holder irrespective of interest fluctuations at a nominal cost with high benefits.
“For many in India, owning a home is a long-cherished dream and a lot of hard work and careful planning goes into buying a house with a home finance. A home is the best gift a customer gives to his family and in the event of an unfortunate event, if he were not around, his family would have to bear the burden of the home loan. But, here, the powerful Homesurance Protection Plan ensures that our customer’s family will inherit a home and not certainly the home loan burden,” said Mr. G V Nageswara Rao, CEO and MD, IDBI Fortis Life Insurance Company Ltd.
IDBI Fortis Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Fortis Insurance International, a multinational insurance giant based out of Europe.
IDBI Fortis Homesurance Protection Plan provides full insurance cover for properties even under construction thus ensuring that the beneficiary gets the full sanctioned amount. Thus one can pay up the builder up front, rather than waiting to take another home loan.
Another notable feature of HPP is the joint life cover wherein lives of co-borrowers can be covered jointly, saving on premiums. Joint life cover comes cheaper than taking individual covers separately. In case of the unfortunate death of either of the joint life insured, the loan liability is taken care of, so that the survivor does not have to pay the loan from his pocket.
The premiums paid are eligible for deduction under Sec 80C of the Income Tax Act. Any benefit amount accrued to the beneficiary on the death of the policy holder is also tax-free under Sec 10(10D) of the Income Tax Act.
IDBI Fortis launched its operations on March 2008 with the innovative Wealthsurance Foundation Plan which received a very encouraging response, helping IDBI Fortis race to more than Rs. 200 Cr in issued premiums in record time.
About IDBI Fortis Life Insurance Co. Ltd.
IDBI Fortis Life Insurance Co. Ltd is a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Fortis Insurance International, a multinational insurance giant based out of Europe.
It is one of the fastest growing new life insurance companies in the country, having launched operations in March 2008 with their innovative product ‘Wealthsurance’. The company has already launched 31 branches and plans to have a pan-India presence with a total of a 100 branches. It also sells through the more than 1000 branches of its promoter banks, IDBI Bank and Federal Bank.
Contact:
BN Kumar - Concept PR
93210 48332
93200 48332
Email: bnk@comnceptpr.com
•Plan ensures you inherit home, not a home loan
•Competitive premiums & comprehensive tax benefits
MUMBAI, February 09, 2009: Striving to ensure that families inherit homes and not the burden of home loans, IDBI Fortis Life Insurance today announced the launch of its unique Homesurance Protection Plan.
Homesurance Protection Plan is a mortgage reducing term insurance plan that secures the policy holder irrespective of interest fluctuations at a nominal cost with high benefits.
“For many in India, owning a home is a long-cherished dream and a lot of hard work and careful planning goes into buying a house with a home finance. A home is the best gift a customer gives to his family and in the event of an unfortunate event, if he were not around, his family would have to bear the burden of the home loan. But, here, the powerful Homesurance Protection Plan ensures that our customer’s family will inherit a home and not certainly the home loan burden,” said Mr. G V Nageswara Rao, CEO and MD, IDBI Fortis Life Insurance Company Ltd.
IDBI Fortis Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Fortis Insurance International, a multinational insurance giant based out of Europe.
IDBI Fortis Homesurance Protection Plan provides full insurance cover for properties even under construction thus ensuring that the beneficiary gets the full sanctioned amount. Thus one can pay up the builder up front, rather than waiting to take another home loan.
Another notable feature of HPP is the joint life cover wherein lives of co-borrowers can be covered jointly, saving on premiums. Joint life cover comes cheaper than taking individual covers separately. In case of the unfortunate death of either of the joint life insured, the loan liability is taken care of, so that the survivor does not have to pay the loan from his pocket.
The premiums paid are eligible for deduction under Sec 80C of the Income Tax Act. Any benefit amount accrued to the beneficiary on the death of the policy holder is also tax-free under Sec 10(10D) of the Income Tax Act.
IDBI Fortis launched its operations on March 2008 with the innovative Wealthsurance Foundation Plan which received a very encouraging response, helping IDBI Fortis race to more than Rs. 200 Cr in issued premiums in record time.
About IDBI Fortis Life Insurance Co. Ltd.
IDBI Fortis Life Insurance Co. Ltd is a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Fortis Insurance International, a multinational insurance giant based out of Europe.
It is one of the fastest growing new life insurance companies in the country, having launched operations in March 2008 with their innovative product ‘Wealthsurance’. The company has already launched 31 branches and plans to have a pan-India presence with a total of a 100 branches. It also sells through the more than 1000 branches of its promoter banks, IDBI Bank and Federal Bank.
Contact:
BN Kumar - Concept PR
93210 48332
93200 48332
Email: bnk@comnceptpr.com
Wednesday, February 4, 2009
India Post gold retailing pilot a success; soon to launch Gold Accumulation Plan
Over 10,000 customers since October 15, 2008
More than 24,724 gold coins sold
Number of branches currently selling gold coins increased from 108 to 155
Soon to launch its Gold Accumulation Plan (GAP) - a first-of-its kind initiative by India Post in association with Reliance Money and World Gold Council
GAP to be modeled on the lines of Postal Savings Scheme
Mumbai, 4th February, 2009: India Post today announced the success of its Gold retailing pilot project in association with Reliance Money and World Gold Council. It also announced plans to launch Gold Accumulation Plan (GAP) via its retail network.
The announcement was made by Ms. Sunita Trivedi, Chief General Manager, India Post today.
Over 10,000 customers have purchased 24,742 gold coins through India Post outlets since October 15, 2008.
“The response that we have received to our pilot project has been highly encouraging. Based on the increased demand we increased the number of outlet retailing gold coins from 108 to 155. Customers can now purchase gold coins from any India Post outlet across 9 states in the country. Going forward, we not only plan to further expand this service to another 100 India Post outlets but also launch our Gold Accumulation Plan to help customers make systematic investments in gold,” said Ms. Trivedi.
The proposed GAP will offer customers a SIP (Systematic Investment Plan) like option while investing in gold through accumulation of small quantities as and when they have the money during a particular month. Hence, customers will not need to invest a huge lump sum at a single point of time.
“Retailing gold through India Post is a ground-breaking initiative in the Indian investment sector and one of its kind in the world. The success of this pilot study is a true reflection of the faith an average Indian has in India Post and in gold as an asset class. Gold is also the most credible form of Social Security for the women of India and introduction of GAP by the Indian Postal Services will be one more innovation from them in the service of these women. This initiative will be another first by a highly credible organized player in the Indian investment sector” said Mr. Ajay Mitra, Managing Director of World Gold Council, India.
Under GAP, the customer will benefit from the average pricing of gold over a period of time, as more gold grams will be credited when the price of gold is low and lesser will be purchased when the price is high. The quantity of gold to be invested in or grammage (such as 25/ 50/ 100 grams) and the tenure (such as 12/ 24/ 36 months) specified can be increased as and when desired by the customer.
“We are extremely happy with the success of the gold retailing pilot and are looking forward to introducing the GAP with India Post. Through this pioneering move, we aim take the culture of structured investments in gold to the masses by giving them the convenience of investing in small quantities. We are sure this move will bring about a paradigm shift in the way people invest in gold in the country,” said Mr. Sudip Bandyopadhyay, Director and CEO, Reliance Money.
For details contact –
Reliance Money
Mumbai: Tamanna Khanna tamanna.khanna@relianceada.com +91-93236 09510
Delhi: Sanjiv Kumar sanjiv.k.sinha@relianceada.com +91-93124 56677
Concept PR: B. N. Kumar bnk@conceptpr.com +91-9321048332
More than 24,724 gold coins sold
Number of branches currently selling gold coins increased from 108 to 155
Soon to launch its Gold Accumulation Plan (GAP) - a first-of-its kind initiative by India Post in association with Reliance Money and World Gold Council
GAP to be modeled on the lines of Postal Savings Scheme
Mumbai, 4th February, 2009: India Post today announced the success of its Gold retailing pilot project in association with Reliance Money and World Gold Council. It also announced plans to launch Gold Accumulation Plan (GAP) via its retail network.
The announcement was made by Ms. Sunita Trivedi, Chief General Manager, India Post today.
Over 10,000 customers have purchased 24,742 gold coins through India Post outlets since October 15, 2008.
“The response that we have received to our pilot project has been highly encouraging. Based on the increased demand we increased the number of outlet retailing gold coins from 108 to 155. Customers can now purchase gold coins from any India Post outlet across 9 states in the country. Going forward, we not only plan to further expand this service to another 100 India Post outlets but also launch our Gold Accumulation Plan to help customers make systematic investments in gold,” said Ms. Trivedi.
The proposed GAP will offer customers a SIP (Systematic Investment Plan) like option while investing in gold through accumulation of small quantities as and when they have the money during a particular month. Hence, customers will not need to invest a huge lump sum at a single point of time.
“Retailing gold through India Post is a ground-breaking initiative in the Indian investment sector and one of its kind in the world. The success of this pilot study is a true reflection of the faith an average Indian has in India Post and in gold as an asset class. Gold is also the most credible form of Social Security for the women of India and introduction of GAP by the Indian Postal Services will be one more innovation from them in the service of these women. This initiative will be another first by a highly credible organized player in the Indian investment sector” said Mr. Ajay Mitra, Managing Director of World Gold Council, India.
Under GAP, the customer will benefit from the average pricing of gold over a period of time, as more gold grams will be credited when the price of gold is low and lesser will be purchased when the price is high. The quantity of gold to be invested in or grammage (such as 25/ 50/ 100 grams) and the tenure (such as 12/ 24/ 36 months) specified can be increased as and when desired by the customer.
“We are extremely happy with the success of the gold retailing pilot and are looking forward to introducing the GAP with India Post. Through this pioneering move, we aim take the culture of structured investments in gold to the masses by giving them the convenience of investing in small quantities. We are sure this move will bring about a paradigm shift in the way people invest in gold in the country,” said Mr. Sudip Bandyopadhyay, Director and CEO, Reliance Money.
For details contact –
Reliance Money
Mumbai: Tamanna Khanna tamanna.khanna@relianceada.com +91-93236 09510
Delhi: Sanjiv Kumar sanjiv.k.sinha@relianceada.com +91-93124 56677
Concept PR: B. N. Kumar bnk@conceptpr.com +91-9321048332
Aditya Birla Financial Services Group scales new peaks
•Consolidated revenues of the financial services businesses crossed Rs. 3043 crores for the nine months ended 31st December, 2008, as against Rs. 2016 crores during the corresponding period, last year - representing an impressive growth of 51%
•Both the life insurance and mutual fund businesses among Top 5 in the private sector in the country, with the life business achieving a market share of 8.5% (amongst private sector players) and the mutual fund business 8.7%.
MUMBAI, February 04, 2009: Aditya Birla Nuvo has a strong presence across various financial verticals that include life insurance, asset management, distribution & wealth management, security based lending, insurance broking & advisory services and private equity.
The results for Q3 2008-09 and the 9 months ended 31st December 2008 reflect continued strong momentum across all the verticals.
Commenting on the performance, Ajay Srinivasan, Chief Executive - Financial Services, Aditya Birla Group, said, "We continue to remain excited with the India story and the yet under penetrated financial services opportunity. We have created a strong foundation with the products, distribution, team and brand in place. And the results are showing. As a manufacturer and distributor of products, today, we can meet virtually all the financial needs of our target customer, just short of a savings or current account. We believe that looking ahead there is opportunity to implement learnings from the year gone by, while continuing to emerge much stronger."
Some of the highlights for the 9 months ended 31st December 2008, across the businesses, were as follows:
BIRLA SUN LIFE INSURANCE
•An annualized premium of Rs. 1810 crores, as against Rs. 1222 crores for the same period last year.
•While the private players grew by 26%, BSLI achieved a 62% year on year growth.
•More significantly, this growth comes at a time when the industry has de-grown for the month of December 2008 by 23%.
•The growth has seen BSLI move to the 5th rank amongst private players within the industry.
•The market share has gone up to 8.5%, up from 6.6% in December 2007.
•Product gaps were filled with launch of Freedom 58 and Health Plan.
BIRLA SUN LIFE ASSET MANAGEMENT COMPANY
•The average domestic assets under management grew to Rs. 36,565 crores as on December 31, 2008.
•While the industry registered a fall of 23%, BSLAMC grew by 20% year on year.
•BSLAMC increased its reach to a total of 116 branches, up from 74 in December 2007
•The market share has gone up to 8.7%, from 5.6% in December 2007.
•Fund performance remained strong with fixed income especially being noteworthy. Overall 17 out of 41 funds have got a 4/5 star rating from Value Research.
BIRLA SUN LIFE DISTRIBUTION
•The company's distribution presence was enhanced with the numbers of branches growing to 40 and number of channel partner increasing over the period
•Product gaps were filled with the introduction of Fixed Deposits, General Insurance and other investment products
BIRLA GLOBAL FINANCE
•Revenues grew from Rs. 80 crores to Rs. 120 crores, a YOY growth of 50%.
•PBT grew from Rs. 25 crores to Rs. 42 crores, a YOY growth of 65%.
•The general insurance advisory services business witnessed a YOY growth of 33% in premium placed as of YTD December 2008
ADITYA BIRLA CAPITAL ADVISORS
•The Private Equity business received SEBI approval in December 2008
•In Q1 2009, the company will launch its maiden fund.
•Both the life insurance and mutual fund businesses among Top 5 in the private sector in the country, with the life business achieving a market share of 8.5% (amongst private sector players) and the mutual fund business 8.7%.
MUMBAI, February 04, 2009: Aditya Birla Nuvo has a strong presence across various financial verticals that include life insurance, asset management, distribution & wealth management, security based lending, insurance broking & advisory services and private equity.
The results for Q3 2008-09 and the 9 months ended 31st December 2008 reflect continued strong momentum across all the verticals.
Commenting on the performance, Ajay Srinivasan, Chief Executive - Financial Services, Aditya Birla Group, said, "We continue to remain excited with the India story and the yet under penetrated financial services opportunity. We have created a strong foundation with the products, distribution, team and brand in place. And the results are showing. As a manufacturer and distributor of products, today, we can meet virtually all the financial needs of our target customer, just short of a savings or current account. We believe that looking ahead there is opportunity to implement learnings from the year gone by, while continuing to emerge much stronger."
Some of the highlights for the 9 months ended 31st December 2008, across the businesses, were as follows:
BIRLA SUN LIFE INSURANCE
•An annualized premium of Rs. 1810 crores, as against Rs. 1222 crores for the same period last year.
•While the private players grew by 26%, BSLI achieved a 62% year on year growth.
•More significantly, this growth comes at a time when the industry has de-grown for the month of December 2008 by 23%.
•The growth has seen BSLI move to the 5th rank amongst private players within the industry.
•The market share has gone up to 8.5%, up from 6.6% in December 2007.
•Product gaps were filled with launch of Freedom 58 and Health Plan.
BIRLA SUN LIFE ASSET MANAGEMENT COMPANY
•The average domestic assets under management grew to Rs. 36,565 crores as on December 31, 2008.
•While the industry registered a fall of 23%, BSLAMC grew by 20% year on year.
•BSLAMC increased its reach to a total of 116 branches, up from 74 in December 2007
•The market share has gone up to 8.7%, from 5.6% in December 2007.
•Fund performance remained strong with fixed income especially being noteworthy. Overall 17 out of 41 funds have got a 4/5 star rating from Value Research.
BIRLA SUN LIFE DISTRIBUTION
•The company's distribution presence was enhanced with the numbers of branches growing to 40 and number of channel partner increasing over the period
•Product gaps were filled with the introduction of Fixed Deposits, General Insurance and other investment products
BIRLA GLOBAL FINANCE
•Revenues grew from Rs. 80 crores to Rs. 120 crores, a YOY growth of 50%.
•PBT grew from Rs. 25 crores to Rs. 42 crores, a YOY growth of 65%.
•The general insurance advisory services business witnessed a YOY growth of 33% in premium placed as of YTD December 2008
ADITYA BIRLA CAPITAL ADVISORS
•The Private Equity business received SEBI approval in December 2008
•In Q1 2009, the company will launch its maiden fund.
Monday, February 2, 2009
Reliance Money launches online magazine - Money Advisor
India's first e-magazine that deals in equity and debt funds
Focus on research and views on sectors and not specific stocks
To carry interviews of senior fund managers/CIO's
Crisp and concise content
Mumbai, February 2, 2009: Reliance Money, part of the Reliance Anil Dhirubhai Ambani Group, today announced the launch of its online Mutual Fund Magazine – Money Advisor that deals with equity as well as debt funds as a part of its investor education drive.
The announcement was made by Mr. Sudip Bandyopadhyay, Director and CEO, Reliance Money here today.
Commenting on the launch, Mr. Bandyopadhyay said, "Reliance Money endeavors to change the way people choose and use financial services in this country. Investor education forms an important ingredient in this endeavor and we are happy to launch Money Advisor – our monthly magazine on the Mutual Fund Industry in India. While most research reports are complex to understand, we have tried to make Money Advisor easy to understand for the retail investor while focusing on both equity and debt funds so far neglected in most research.'
The magazine will provide a synopsis on the Mutual Fund industry and include the latest trends in AUMs, overview and recommendations on equity and debt funds, performance snapshot, interest rate scenario and fixed income update, economic review apart from sector updates.
It will also have views shared by various Fund Managers/ CIOs and an investor education series.
Money Advisor will be mailed to all Reliance Money customers and distributors. At present, Reliance Money has over three million customers and more than 10,000 outlets across 5,165 cities and towns.
About Reliance Money
www.reliancemoney.com
Reliance Money, a part of the Reliance Anil Dhirubhai Ambani Group is a comprehensive financial services and solution provider, providing customers with access to Equity, Equity and Commodity Derivatives, Portfolio Management Services, Wealth Management Services, Mutual Funds, IPOs, Life and General Insurance and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services.
The largest broking house in India with 3 million customers and a wide network of over 10,000 outlets and 20,000 touch points in 5,000+ locations. Reliance Money endeavors to change the way investors transact in financial markets and avails financial services. The average daily volume on the stock exchanges is Rs. 3,000 crores, representing approximately 4% of the total stock exchange volume.
Reliance Capital is one of India's leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking groups, in terms of net worth.
For details contact –
Reliance Money
Mumbai: Tamanna Khanna tamanna.khanna@relianceada.com +91-93236 09510
Delhi: Sanjiv Kumar sanjiv.k.sinha@relianceada.com +91-93124 56677
Concept PR: B. N. Kumar bnk@conceptpr.com +91-9321048332
Focus on research and views on sectors and not specific stocks
To carry interviews of senior fund managers/CIO's
Crisp and concise content
Mumbai, February 2, 2009: Reliance Money, part of the Reliance Anil Dhirubhai Ambani Group, today announced the launch of its online Mutual Fund Magazine – Money Advisor that deals with equity as well as debt funds as a part of its investor education drive.
The announcement was made by Mr. Sudip Bandyopadhyay, Director and CEO, Reliance Money here today.
Commenting on the launch, Mr. Bandyopadhyay said, "Reliance Money endeavors to change the way people choose and use financial services in this country. Investor education forms an important ingredient in this endeavor and we are happy to launch Money Advisor – our monthly magazine on the Mutual Fund Industry in India. While most research reports are complex to understand, we have tried to make Money Advisor easy to understand for the retail investor while focusing on both equity and debt funds so far neglected in most research.'
The magazine will provide a synopsis on the Mutual Fund industry and include the latest trends in AUMs, overview and recommendations on equity and debt funds, performance snapshot, interest rate scenario and fixed income update, economic review apart from sector updates.
It will also have views shared by various Fund Managers/ CIOs and an investor education series.
Money Advisor will be mailed to all Reliance Money customers and distributors. At present, Reliance Money has over three million customers and more than 10,000 outlets across 5,165 cities and towns.
About Reliance Money
www.reliancemoney.com
Reliance Money, a part of the Reliance Anil Dhirubhai Ambani Group is a comprehensive financial services and solution provider, providing customers with access to Equity, Equity and Commodity Derivatives, Portfolio Management Services, Wealth Management Services, Mutual Funds, IPOs, Life and General Insurance and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services.
The largest broking house in India with 3 million customers and a wide network of over 10,000 outlets and 20,000 touch points in 5,000+ locations. Reliance Money endeavors to change the way investors transact in financial markets and avails financial services. The average daily volume on the stock exchanges is Rs. 3,000 crores, representing approximately 4% of the total stock exchange volume.
Reliance Capital is one of India's leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking groups, in terms of net worth.
For details contact –
Reliance Money
Mumbai: Tamanna Khanna tamanna.khanna@relianceada.com +91-93236 09510
Delhi: Sanjiv Kumar sanjiv.k.sinha@relianceada.com +91-93124 56677
Concept PR: B. N. Kumar bnk@conceptpr.com +91-9321048332
Sunday, February 1, 2009
Banks must heed to RBI's call to cut rates
by Ashok Handoo*
By not reducing any of the key rates in its third-quarter review of the monetary policy, the Reserve Bank has sent a clear signal to commercial banks that they need to reduce their lending rates and make cheaper credit available to the customers. RBI is clearly of the view that banks have yet to pass on the benefits of the previous cuts in interest rates announced by it. Obviously, the Reserve Bank is not happy with the response of the banks, particularly private and foreign banks, to the initiatives taken by it so far. It feels there is enough scope for banks to do more.
As it is, the Reserve Bank in a space of just one quarter brought down the repo rate (the rate at which RBI lends overnight funds to banks) from 9 to 5.5 percent. The reverse repot rate (the rate at which RBI accepts deposits from banks) was brought down to 4 percent, what the RBI Governor Dr. D. Subbarao described as “historically lowest level”. But as he pointed out it’s “transmission in the credit market has so far been subdued”. RBI firmly believes that it’s policy easing had allowed banks considerable room to respond more actively which has not happened. It has thus adopted a wait and watch policy for the time being, to monitor the response from the banks and give them more time.
The bankers, on the other hand, feel that they have responded to the extent possible. They argue that the average cost of funds to them is still high and lending and borrowing rates can come down only when the fund costs come down. Some even expressed disappointment at the RBI “holding back it’s activism” in reducing the key rates to make cheaper funds available to them. But by and large, bankers agree that the RBI policy is on expected lines.
Through its earlier initiatives the RBI has infused liquidity of over Rs. 4 lakh crore into the system improving the liquidity situation, significantly.
It is not that the doors for further reduction in key rates have been closed. On the contrary, the RBI has made it clear that it will respond to any adverse development. So, more cuts outside the policy can happen anytime. The current pause could only be a temporary thing.
Another message that the RBI has given is that there is a clear evidence of deeper consequences of the global downturn on the Indian economy which can lead to its further slowdown. Industrial activity, particularly in the manufacturing and the infrastructural sectors, is decelerating. The services sector too, which has been the prime engine of growth for the last several years, will slowdown mainly in construction, transport, hotels, tourism and trade sectors. . The consequences have been more pronounced after October 2008 which has led the RBI to revise its GDP growth projection for the current financial year to 7 percent against the earlier 7.7 percent. In fact the Survey conducted by the 13 professional forecasters has put it at 6.8 percent.
That is all the more reason for the banks to respond more vigorously to the rate cuts already effected.
At the same time , there are two positive factors at play. One, the inflation rate has been falling sharply for the last 10 months to 5.6 % with only a small aberration in the latest figure which is attributed to the Truckers strike during that period. The current projections are that the rate will fall further to about 3 percent by March end, though it is reflected more in the Wholesale Price Index (WPI) than in the Consumer Price Index (CPI).That is primarily because of the fall in international crude oil prices, steel and select food items. A fall in demand has also played some role in this.
The second positive factor is the expected increase in consumption demand in the days ahead, reflecting rise in basic exemption limits in tax and tax slabs, the 6th pay commission award, debt waiver to farmers, and the expenditure that would be incurred in the run up to elections in a few months from now.
All this will allow an elbow room to the government to cut the key rates further, if the situation so demands.
The RBI has also warned that the fiscal measures to boost growth and lower revenue receipts could sharply widen the fiscal deficit from the earlier estimate of 2.5 percent to 5.9 % .The combined shortfall of the centre and the state governments could come to 8.5 %, or even more.
As the Prime Minister’s Economic Advisory Council pointed out the other day, both the saving and investment rates are likely to be lower in the current fiscal. The saving rates may fall due to larger negative savings of the Government. The investment rate will be less by 2.5 percentage points compared to the previous year, due to financing constraints facing Indian enterprises.
The widening trade deficit is a matter of concern as is the moderation in capital inflows. Though the Foreign Direct Investment (FDI) has shown an increase in the current financial year the portfolio investment has recorded a substantial outflow. The institutional investors have sold about $10 billion of their investment in Indian companies to cover losses in their home markets.
With Indian economy getting more and more integrated with the world economy and the US, Europe and Japan already experiencing recession, India can not remain totally insulated. A less than optimistic sentiment in the economy is therefore quite natural. As the Prime Minster pointed out India’s economic problems would not be over in the current year and could spill over into 2009-10, but the “Government will continue its efforts for a supporting environment next year also. Both monetary and fiscal policy will have to be tailored.” The Deputy Charmin of the Planning Commission Shri Montek Singh Ahluwalia has also spoken of innovative interim measures. These include floating of tax- free bonds ‘to provide refinancing facilities to banks to encourage them to offer long term debts” to companies investing in infrastructure sectors which have long gestation periods.
It is a matter of satisfaction that everybody agrees that the Indian economy will recover earlier than the world economy, once things begin to improve. (PIB Features)
*Disclaimer : The views expressed by the author in this feature are entirely his own and do not necessarily reflect the views of PIB.
By not reducing any of the key rates in its third-quarter review of the monetary policy, the Reserve Bank has sent a clear signal to commercial banks that they need to reduce their lending rates and make cheaper credit available to the customers. RBI is clearly of the view that banks have yet to pass on the benefits of the previous cuts in interest rates announced by it. Obviously, the Reserve Bank is not happy with the response of the banks, particularly private and foreign banks, to the initiatives taken by it so far. It feels there is enough scope for banks to do more.
As it is, the Reserve Bank in a space of just one quarter brought down the repo rate (the rate at which RBI lends overnight funds to banks) from 9 to 5.5 percent. The reverse repot rate (the rate at which RBI accepts deposits from banks) was brought down to 4 percent, what the RBI Governor Dr. D. Subbarao described as “historically lowest level”. But as he pointed out it’s “transmission in the credit market has so far been subdued”. RBI firmly believes that it’s policy easing had allowed banks considerable room to respond more actively which has not happened. It has thus adopted a wait and watch policy for the time being, to monitor the response from the banks and give them more time.
The bankers, on the other hand, feel that they have responded to the extent possible. They argue that the average cost of funds to them is still high and lending and borrowing rates can come down only when the fund costs come down. Some even expressed disappointment at the RBI “holding back it’s activism” in reducing the key rates to make cheaper funds available to them. But by and large, bankers agree that the RBI policy is on expected lines.
Through its earlier initiatives the RBI has infused liquidity of over Rs. 4 lakh crore into the system improving the liquidity situation, significantly.
It is not that the doors for further reduction in key rates have been closed. On the contrary, the RBI has made it clear that it will respond to any adverse development. So, more cuts outside the policy can happen anytime. The current pause could only be a temporary thing.
Another message that the RBI has given is that there is a clear evidence of deeper consequences of the global downturn on the Indian economy which can lead to its further slowdown. Industrial activity, particularly in the manufacturing and the infrastructural sectors, is decelerating. The services sector too, which has been the prime engine of growth for the last several years, will slowdown mainly in construction, transport, hotels, tourism and trade sectors. . The consequences have been more pronounced after October 2008 which has led the RBI to revise its GDP growth projection for the current financial year to 7 percent against the earlier 7.7 percent. In fact the Survey conducted by the 13 professional forecasters has put it at 6.8 percent.
That is all the more reason for the banks to respond more vigorously to the rate cuts already effected.
At the same time , there are two positive factors at play. One, the inflation rate has been falling sharply for the last 10 months to 5.6 % with only a small aberration in the latest figure which is attributed to the Truckers strike during that period. The current projections are that the rate will fall further to about 3 percent by March end, though it is reflected more in the Wholesale Price Index (WPI) than in the Consumer Price Index (CPI).That is primarily because of the fall in international crude oil prices, steel and select food items. A fall in demand has also played some role in this.
The second positive factor is the expected increase in consumption demand in the days ahead, reflecting rise in basic exemption limits in tax and tax slabs, the 6th pay commission award, debt waiver to farmers, and the expenditure that would be incurred in the run up to elections in a few months from now.
All this will allow an elbow room to the government to cut the key rates further, if the situation so demands.
The RBI has also warned that the fiscal measures to boost growth and lower revenue receipts could sharply widen the fiscal deficit from the earlier estimate of 2.5 percent to 5.9 % .The combined shortfall of the centre and the state governments could come to 8.5 %, or even more.
As the Prime Minister’s Economic Advisory Council pointed out the other day, both the saving and investment rates are likely to be lower in the current fiscal. The saving rates may fall due to larger negative savings of the Government. The investment rate will be less by 2.5 percentage points compared to the previous year, due to financing constraints facing Indian enterprises.
The widening trade deficit is a matter of concern as is the moderation in capital inflows. Though the Foreign Direct Investment (FDI) has shown an increase in the current financial year the portfolio investment has recorded a substantial outflow. The institutional investors have sold about $10 billion of their investment in Indian companies to cover losses in their home markets.
With Indian economy getting more and more integrated with the world economy and the US, Europe and Japan already experiencing recession, India can not remain totally insulated. A less than optimistic sentiment in the economy is therefore quite natural. As the Prime Minster pointed out India’s economic problems would not be over in the current year and could spill over into 2009-10, but the “Government will continue its efforts for a supporting environment next year also. Both monetary and fiscal policy will have to be tailored.” The Deputy Charmin of the Planning Commission Shri Montek Singh Ahluwalia has also spoken of innovative interim measures. These include floating of tax- free bonds ‘to provide refinancing facilities to banks to encourage them to offer long term debts” to companies investing in infrastructure sectors which have long gestation periods.
It is a matter of satisfaction that everybody agrees that the Indian economy will recover earlier than the world economy, once things begin to improve. (PIB Features)
*Disclaimer : The views expressed by the author in this feature are entirely his own and do not necessarily reflect the views of PIB.
Subscribe to:
Posts (Atom)
