Category Archives: Business

OBC's business figure crosses Rs 3.59 lakh crore: Official

BENGALURU: The total business figure of Oriental Bank of Commerce (OBC) has crossed Rs 3.59 lakh crore while the total bank deposits stood at Rs 2.10 lakh crores, as on December 31, 2016, a senior company official said on Sunday.

“The bank has crossed total business figures of Rs 3.59 lakh crore with total deposits being Rs 2.10 lakh crores as on December 31, 2016,” Deputy General Head and Cluster Monitoring Office Head of OBC, Dinesh Kumar Vishnoi told PTI here on the sidelines of 75th anniversary celebrations of the bank.

The total income of the bank has increased to 1.22 per cent year-on-year basis, he said.

Vishnoi, who is also the head of classic branches located in Karnataka, Kerala, Tamil Nadu and Puducherry also claimed that during the demonetisation period, bank deposits had shot from Rs 107 to Rs 113 lakh crore, nearly twice the amount of deposits that flowed into the banks between April to October.

He further said the bankers are anticipating that the current level of 40-50 per cent retention of the deposits can go down to 20-30 per cent over the course of the year.

This affects the growth in deposits at the end of FY 2017, and FY 2018 fiscal will be notable and it is higher than the 9 to 10 per cent growth seen in 2015-16, he added.

On the occasion, the bank organised blood donation camp, free health check-up, and tree plantations at various locations.

It also launched two special schemes – Oriental Sanjeevani and Oriental loan for budget hotel and restaurants.

A special mobile wallet, Oriental Batuaa was also launched.

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Full start of Reliance petchem will halt heavy exports

India’s Reliance Industries, owner of the world’s biggest refining complex, will halt heavy naphtha exports in 2017/18 after the full-scale start-up of its 2.2 million tonnes per year (tpy) paraxylene plant, four people with knowledge of the matter said.

The plant, located in western Gujarat state, is currently operating at about 800,000 tpy capacity, and the rest of the project’s capacity is set to come on stream before the end of this financial year in March, one of the people said.

The petrochemical is primarily used in polyester and polyethylene terephthalate (PET).

The main feedstock for paraxylene is heavy naphtha, a crude-based product which can also be converted into reformates, a blending component for high-octane gasoline.

At full capacity, Reliance‘s paraxylene plant would require 2.7 million tonnes per year of heavy naphtha – reducing its ability to export the product and making it likely to resort to imports of heavy naphtha, the trade sources said.

The people declined to be identified because they were not authorised to discuss the matter publicly.

Reliance did not immediately respond to Reuters’ requests for comments.

Traders said they expect Reliance to import about two medium-range vessel size a month of heavy naphtha if they do have to buy the product. It currently exports heavy naphtha on a sporadic basis, they said.

“Previously, Asia was not getting much heavy naphtha but these days, Russia is able to supply heavier grades of naphtha,” said one Singapore-based trader.

Reliance will continue exporting paraffinic naphtha, which has a minimum 70 percent paraffin content and is used to make ethylene, a plastics feedstock.

Of India’s total 730,000 tonnes of naphtha shipped out in January, over 220,000 tonnes were from Reliance and most of it in paraffinic form.

While the short-term supply outlook for naphtha in general is tight in Asia due to India cutting back exports, refinery maintenance, outages and a lack of alternative feedstock to replace naphtha, the longer-term outlook is for oversupply.

“The global market for naphtha will be over-supplied until at least 2020,” IHS Markit said in a report, projecting global demand for naphtha (including natural gasoline) to be 1.18 billion tonnes in 2017.

But it said some markets could become short of naphtha after 2020, particularly heavy naphtha if investments were to fall off now.

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Mutual Fund industry bets big on SIP investments to grow

MUMBAI: Fund houses are betting big on investments through systemic investment plan (SIP) to achieve the magical figure of Rs 20 trillion assets under management (AUM) for the industry by end of the current calendar year.

While some of the fund houses see the growth in SIP coming from B-15 cities, few others said their SIPs are doing very well and hence they are confident of the industry achieving the Rs 20 trillion mark by the year-end.

The AUM reached Rs 17.4 trillion in January, expanding 36.4 per cent from Rs 12.7 trillion a year ago, according to data from the Association of Mutual Funds in India (AMFI).

DHFL Pramerica Mutual Fund, with Rs 27,000 crore AUM currently, said its SIP was growing by 35-40 per cent over past nine months.

“We have seen our SIP book growing by 35-40 per cent over the past nine months and we have seen lots of participation from B-15 cities,” DHFL Pramerica Mutual Fund Chief Executive Suresh Soni said on the sidelines of an event over the last weekend here.

Commenting on the industry nearing the Rs 20-trillion mark, he said opportunities available before the sector are very encouraging.

According to Soni, after demonetisation, the overall addressable pool of money has gone up remarkably. “We can access the money stashed in banks. Some of it could come to the MF industry. Secondly, the money flow to the industry post -noteban was mature one and hence good for the industry.”

Edelweiss Mutual Fund is betting high on its SIP, pre- paid SIP in particular, to drive the growth. The fund house, having AUM of Rs 7,000 crore, is ranked 25th at present.

“We are looking for achieving Rs 20,000 crore of AUM over the next 2-3 years and for this we are betting on SIP and pre-paid SIP in particular among other factors,” Edelweiss AMC chief Executive Radhika Gupta said.

Pre-paid SIP allows an investor to take advantage of the market falls, a facility not available under regular SIP.

Commenting on the industry’s ambition to cross the Rs 20 trillion mark by the year-end, she said, “At a time when the mutual fund industry penetration was merely 3-4 per cent, there will be no surprises if we make it to Rs 20 trillion level by the year-end.”

DSP BlackRock Investment Managers has decided to temporarily suspend, from February 20, all fresh transactions in its open-ended diversified equity scheme Micro Cap Fund.

The reason cited by the company for suspension of fresh inflows is that there is a possibility large inflows into the scheme may prove detrimental to the interest of existing unit holders.

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Now, IndiGo Airbus 320 Neo faces engine snag

NEW DELHI: Engine trouble on the Airbus A-320 new engine option (Neo) shows no signs of abating.

On Saturday, an IndiGo A-320 Neo developed a snag in one of the engines, manufactured by aircraft engine makers Pratt and Whitney. “The aircraft (VT-ITC) got a ‘oil chip detected’ warning for one engine at Vadodara. It had to be flown back as a ferry (without passengers) to Delhi on Sunday for engine change,” said a source.

IndiGo did not comment on this latest trouble with this engine. Till the time of filing this story, it could not be ascertained at what stage of flight the latest engine trouble with A-320 Neo happened.

Saturday’s trouble is the fourth in less than a month with both IndiGo and GoAir – that use A-320 Neos with P&W engines – reporting two engine issues each. IndiGo A-320 neo on Saturday reportedly got an “oil chip” warning similar to the one that was witnessed by a GoAir A-320 Neo which had taken off from Delhi for Bangalore on February 8 and had to return to Delhi after a fire scare on an engine.

P&W spokesperson Sara Banda told TOI: “Pratt & Whitney is supporting GoAir and IndiGo to assess the situation and minimize any disruption. At this time, it is premature to speculate on the cause of the issues while they are still under review. We are working closely with our customers and our suppliers in order to address and resolve these issues quickly. The PW GTF (geared turbofan engine) engines are a game-changing, break-through technology with more than 82,000 hours in service.”

Directorate General of Civil Aviation (DGCA) chief B S Bhullar had recently said that the regulator is studying the engine trouble on the Neo. The A-320 is the most commonly used plane in India with airlines like IndiGo, Air India, GoAir and Vistara using this equipment.

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Fabindia removing 'Khadi' brand name from its products

NEW DELHI: Fabindia has started removing the brand name ‘Khadi’ it uses to promote its cotton products after a legal notice by Khadi India that the use of the word amounted to “unfair trade practice” and misusing its trade name.

Khadi & Village Industries Commission (KVIC) had sent a legal notice to Fabindia Overseas Pvt Ltd, a chain of ethnic wear retail outlet, asking it to immediately stop using the word Khadi from all its cotton products and remove display banners from its showrooms.

Sources said Fabindia CEO Viney Singh has responded to KVIC’s notice, saying it was complying with all the directions of the KVIC. Fabindia has stated that “as per the direction issued” by KVIC, it has complied with them, they said.

Fabindia, in its reply, has also sought a meeting with KVIC officials to explain its position in order to resolve the matter to the satisfaction of Khadi India.

KVIC Chairman V K Saxena, who justified serving the legal notice, referred to the earlier communications with Fabindia by which the private firm’s application for Khadi mark was treated as closed.

He cited a September 29, 2016 letter which stated that “upon the request of Fabindia, several meetings were held with KVIC and the last meeting was held on August 2, 2016, with Chairman of KVIC at New Delhi. During the meeting, it was assured that Fabindia will communicate their consent shortly.

“Since two months have passed and KVIC has not yet received any response from your end, it is presumed that you are not interested to obtain ‘Khadi’ mark certificate for sales and promotion of Khadi products.

“Hence in the present circumstances, your application for Khadi mark certificate may please be treated as closed. Henceforth, no correspondence on this subject will be entertained,” the communication said.

Saxena also drew attention to a February 16 letter of KVIC in which it was decided to issue Khadi mark certificate in favour of Fabindia to carry out trading/selling of genuine Khadi and Khadi products attaching Khadi mark tags/labels, subject to several conditions which were also mentioned.

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Steel production likely to remain higher in 2017-18: Report

MUMBAI: The country’s steel production and consumption is likely to remain higher in 2017-18 from 89.79 MT of crude steel during 2015-16 backed by an increase in infrastructure allocation in the Budget, a report said.

In 2017-18, steel production is expected to remain higher. This will be backed by an expected revival in consumption. An increase in infrastructure allocation by the government in the Union Budget 2017-18 is expected to drive the pace of construction and infrastructure in the country, Care Ratings said in its report here.

The National Steel Policy 2017, released by the government, also aims to increase steel production.

Thus, both production and consumption of steel is expected to remain buoyant in 2017-18, the report said.

The country has gained the position of third largest crude steel producer in the world and is largely focusing on increasing production.

However, focus at the same time should be on increasing consumption of steel and reducing the dependence on cheap imports.

The government had supported the industry in 2016 by providing protectionist measures. But the protection cannot be expected to last forever and the industry has to gear itself to face competition in the normal course, Care Ratings said.

In 2014-15, India surpassed the US to become the third largest steel producer in the world. India continued with this position in 2015-16 as well. The country produced 88.97 million tonnes and 89.79 million tonnes of crude steel during 2014-15 and 2015-16, respectively.

Steel production in the world is dominated by China followed by Japan.

During 2015-16, crude steel output of China stood at | 789.04 MT and for Japan it stood at 104.23 MT.

In 2016-17, production of these steel producing countries (excluding India) remained subdued even during April-December 2016 on a y-o-y basis.

While crude steel output in China, Japan and Russia grew by mere 0.5-3 per cent, output in US remained flat and that in South Korea declined by 1.3 per cent.

In contrast, crude steel production in India rose by 8.8 per cent to 72.35 MT during this period.

This was on account of higher output by the major Indian steel companies.

The imposition of Minimum Import Price (MIP) encouraged the producers to increase their output.

Care Ratings said that the consumption of steel, on the other hand, grew by just 3.2 per cent to 73.75 MT during April-December 2016.

Post-demonetization, steel consumption is expected to remain under pressure in the coming few months to a certain extent. This is because it is likely that the demand for steel from the user industries like construction, real estate will take some time to strengthen.

However, government push towards infrastructure will compensate for this reduction in demand, it added. PTI AP RSY JM BAL 02191404 NNNN

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Capgemini India chief says 65% of IT employees not retrainable

MUMBAI: With the domestic IT industry staring at a shift in nature of work due to increasing use of digital technologies, a leading firm has said a majority of the workforce cannot imbibe the required emerging skill-sets, and warned of high job losses at the middle and senior levels.

“I am not very pessimistic, but it is a challenging task and I tend to believe that 60-65 per cent of them are just not trainable,” Capgemini India‘s chief executive Srinivas Kandula said here over the weekend.

The domestic arm of the French IT major employs nearly one lakh engineers in the country.

“A large number of them cannot be trained. Probably, India will witness the largest unemployment in the middle level to senior level,” he said at the annual Nasscom leadership summit here over the weekend.

He also flagged concerns surrounding the quality of IT workforce, saying much of the 3.9 million IT employees come from low-grade engineering colleges which do not follow rigorous grading patterns for students in their zeal to maintain good records.

The remarks come days after the industry lobby Nasscom said there is a need to re-train up to 1.5 million, or nearly half of its sectoral workforce. This is primarily on the back of a change in nature of work in newer, digital technologies.

Kandula said the industry, driven by yield-seeking investors, has not invested enough to upgrade the skill-sets of its employees.

He also said more number of students are now being hired from lower grade engineering colleges, which has ensured that the rise in wages has been negative by a huge margin.

Kandula said as against offers of Rs 2.25 lakh per annum that used to go out for freshers two decades ago, they have risen only to Rs 3.5 lakh now, which suggests a massive decrease in real wages from an inflation-adjusted perspective.

“For some unknown reasons, we call it a knowledge- driven industry. If you have that kind of talent, and then making them learn the existing technology itself is such a huge challenge,” he said.

The quality of the students who are coming in is so bad that many of them are not able to answer, when asked about the subjects taught to them when they were in the final semester of their engineering degrees, he said.

The critical remarks come months after a study found out that as much as 80 per cent of engineering graduates are unemployable.

Kandula had last week told PTI that his company would shift focus to hiring freshers from the laterals earlier due to the newer skill-sets which are required and the ease of training which the freshers offer. He, however, had maintained that the company will continue to hire.

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'Stock markets to see volatility in week ahead'

NEW DELHI: Stock markets likely to witness volatility amid derivatives expiry in a holiday-shortened week ahead, and the ongoing UP assembly elections will also continue to dominate sentiments, say experts.

Stock markets will remain closed on Friday for ‘Mahashivratri’.

“In absence of any major trigger on the domestic front, this week looks unexciting and will be guided largely by global cues. Hence, chances of consolidation cannot be ruled out. Trading is expected to remain volatile in truncated trading as traders roll over positions in F&O segment,” said Vijay Singhania, Founder-Director, Trade Smart Online.

“The ongoing UP assembly elections will continue to dominate market sentiments in the week as polling processes. We believe market to take cues from UP polling also and behave similarly. Overall, we foresee range-bound trading in benchmark indices for the coming week.

“However, if any clue of any good news comes in like BJP getting majority in UP, we could see rally in the market,” Singhania noted.

Over the last week, both Sensex and Nifty recorded their fourth straight weekly gains by surging 134.50 points, or 0.47 per cent, and 28.15 points, or 0.32 per cent, respectively.

“Though this week is more or less to remain eventless in the absence of any major trigger in the domestic as well as global market. However, traders would be keenly eyeing the outcome of the state election results to receive more clarity on the several stalled projects,” said Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments.

Counting of votes will take place on March 11.

“Going ahead, markets will watch out for the UP election results… A positive outcome for BJP in the state elections may lead the markets higher, at least in the short term,” said Dipen Shah, Sr Vice President – PCG Research, Kotak Securities.

“The market seems to be in no hurry to move before the outcome of state elections, especially the UP which shall be the major test of the present government. The outcome will decide the speed of reforms which is why, this time such an importance is placed to the assembly elections,” said Jimeet Modi, CEO, SAMCO Securities.

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Business News | Latest Business News | World Business News Headlines | Times of IndiaBusiness News | Latest Business News | World Business News Headlines | Times of IndiaChina suspends coal imports from North Korea: MinistryAhead of merger with SBI, associate SBT to raise up to Rs 600crWith $36 billion in nine months, FDI may deliver a recordPost Mistry feud, Tatas putting their house in orderWill focus on expanding into banking this year: Paytm the latest business news and recent updates on business, finance and economy from across the world. Get daily updates for Stock markets, BSE, NSE, Nifty, business news on various sectors, market updates and much more from Times of India Business.en-gbSun, 19 Feb 2017 06:07:22 GMTCopyright:(C) 2017 Bennett Coleman & Co. Ltd,<a href=””><img border=”0″ hspace=”10″ align=”left” style=”margin-top:3px;margin-right:5px;” src=”” /></a>”(China) will temporarily stop its imports of coal from North Korea for the rest of this year (including coal for which customs applications have been made but not yet processed),” the commerce ministry said in a statement posted on its website., 18 Feb 2017 13:46:23 GMT<a href=””><img border=”0″ hspace=”10″ align=”left” style=”margin-top:3px;margin-right:5px;” src=”” /></a>, 18 Feb 2017 11:45:31 GMT<a href=””><img border=”0″ hspace=”10″ align=”left” style=”margin-top:3px;margin-right:5px;” src=”” /></a>The surge comes even as the government expects growth to slip to 6.5-6.75% in the current fiscal year from 7.9% in FY16 due to global factors., 18 Feb 2017 04:36:13 GMT<a href=””><img border=”0″ hspace=”10″ align=”left” style=”margin-top:3px;margin-right:5px;” src=”” /></a>After Ratan Tata occupied the corner office in 1991, he retained the set-up and décor left by his predecessor, JRD Tata, for several years., 18 Feb 2017 04:30:03 GMT<a href=””><img border=”0″ hspace=”10″ align=”left” style=”margin-top:3px;margin-right:5px;” src=”” /></a>Paytm founder Vijay Shekhar Sharma on Friday said the company will focus on expanding its operations in banking. Sharma said the Paytm Paymen

China suspends coal imports from North Korea: Ministry

BEIJING: China will suspend all imports of coal from North Korea for the rest of the year, Beijing said Saturday, depriving Pyongyang of a crucial source of foreign exchange following its latest missile test.

“(China) will temporarily stop its imports of coal from North Korea for the rest of this year (including coal for which customs applications have been made but not yet processed),” the commerce ministry said in a statement posted on its website.

The suspension, which implements existing UN sanctions, will start on 19th February and remain in force until the end of the year, it added.

The decision came less than a week after North Korea’s latest missile test, as tensions escalate over the reclusive state’s defiance of UN resolutions.

The North’s leader Kim Jong-Un has been trying to strengthen his grip on power in the face of growing international pressure over his country’s nuclear and missile programmes.

The communique from Beijing came as investigators in Malaysia probe the shock assassination of Kim’s half-brother on Monday.

The United Nations Security Council, which includes the North’s only major ally China, sharply castigated Pyongyang on Monday for the missile test a day earlier, describing it as a “grave violation” of UN resolutions and threatening “further significant measures”.

On Wednesday Pyongyang defended the missile launch and slammed the UN Security Council condemnation.

The rocket launch was the first since US President Donald Trump came to power and was seen as a challenge to the new American leader, who has vowed a strong response to the provocation.

Trump has repeatedly called out China for doing too little to help stop North Korea’s nuclear programme.

US Secretary of State Rex Tillerson on Friday used his first meeting with Chinese counterpart Wang Yi to urge Beijing “to use all available tools to moderate North Korea’s destabilising behaviour”.

Pyongyang is barred under UN resolutions from carrying out ballistic missile launches or nuclear tests.

North Korea blasted off a series of missiles and conducted two nuclear tests in 2016 in its quest to develop a weapons system capable of hitting the US mainland.

The latest rocket — said by Pyongyang to be able to carry a nuclear warhead — flew east for about 500 kilometres (310 miles) before falling into the Sea of Japan (East Sea), South Korea’s defense ministry said.

The Security Council has imposed six sets of sanctions since Pyongyang first tested an atomic device in 2006.

Beijing traditionally ensured that UN Security Council resolutions on sanctions against Pyongyang included humanitarian exemptions, and had continued to purchase huge amounts of North Korean coal — $101 million worth in October alone — a crucial source of foreign exchange for Pyongyang.

But the latest resolution, passed in December, had no such clause and Beijing suspended purchases of coal from the North — for three weeks to December 31.

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