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Business Standard

MONDAY, 18 APRIL 2011


22 PAGES IN 2 SECTIONS
MUMBAI (CITY)
`3.50
Volume XV Number 212
Published simultaneously from Ahmedabad, Bangalore,
Bhubaneswar, Chandigarh, Chennai, Hyderabad, Kochi,
Kolkata, Lucknow, Mumbai, New Delhi and Pune.

MARKET METER
(How markets performed Change (%) on
last week) Dec 31, 2010 www.business-standard.com
Index on *One- Local in US
Apr 15 week currency $
SENSEX 19,387 -0.3 -5.5 -4.7 THE STRATEGIST SEPARATE SECTION WORLD P14
NIFTY 5,825 -0.3 -5.1 -4.3
DOW JONES 12,342
NASDAQ 2,765
-0.3
-0.6
6.6
4.2
6.6
4.2 NOKIA PREPARES FOR A BITTER THE RAIDER IN WINTER:
BATTLE FOR MARKET SHARES CARL ICAHN AT 75
HANG SENG 24,008 -1.6 4.2 4.2
NIKKEI 9,592 -1.8 -6.2 -7.9
FTSE 5,996 -1.0 1.6 6.3
DAX 7,178 -0.5 3.8 13.0
*Change (%) over previous week Source : Bloomberg

[IN BRIEF]
CHINA RAISES SBI TO MAKE LOANS
RESERVE RATIO
China raised banks’
required reserves on Sunday DEARER, OTHERS
TO FOLLOW SUIT
for the fourth time this year,
extending the fight against
excessive liquidity and
stubbornly high inflation in
the world’s second-largest
economy. +14
Set to increase its base rate by 25 basis points
Global rebalancing PARNIKA SOKHI
The Reserve Bank of India Mumbai, 17 April

S
has said global rebalancing
will require deficit TATE Bank of India
economies to save more (SBI), the country’s
and consume less while largest lender, is set to
depending more on increase its base rate —
external demand. +8 the benchmark rate for all loans
— by 25 basis points. Top SBI
officials said the rate hike may
RIL board meeting happen even before the Re-
Next week, on April 21, serve Bank of India’s (RBI’s)
when the board of Reliance annual policy review scheduled
Industries (RIL) meets, for May 3.
RIL’s plans for the financial SBI’s base rate, which is at
sector will be high on the 8.25 per cent, is the lowest Union Finance Minister and Congress leader Pranab Mukherjee with actor Sharad Kapur (left) waves during the Assembly election
agenda and final details of among major banks. Most oth- campaign for his son, Abhijit Mukherjee, in Birbhum district of West Bengal on Sunday. PHOTO: REUTERS RELATED REPORT ON P5
the deal with DE Shaw er public sector banks have set
would be discussed. +4 their base rates at 9.5 per cent.
The base rate of ICICI Bank,

Growth target
Prodded by Prime Minister
Manmohan Singh, the
which is the largest private sec-
tor lender, is at 8.75 per cent.
Bankers said other banks
will increase their base rates if
Sebi moves apex court on Sahara
Planning Commission is SBI goes ahead with the pro- SBI’S BASE RATE, AT 8.25 PER CENT, N SUNDARESHA SUBRAMANIAN Sahara India Real Estate to prevent any ex parte deci- tion, which had restrained the
likely to come out with a
target of 10 per cent
posed hike.
“We (SBI) are looking at re-
is the lowest among major banks Mumbai, 17 April Corporation and Sahara Hous-
ing Investment Corporation
sions (those taken in the ab-
sence of one of the parties to a
two firms from raising money
from the public.
average annual economic vising the base rate. We need to rates in the last quarter of 2010- SBI has raised retail deposit THE Securities and Exchange are under the capital market case) on the matter. Turn to Page 16
growth rate for the 12th increase it as the cost of funds 11. According to the latest RBI rates since June 2010 to a near- Board of India (Sebi) has filed regulator’s scanner for raising Sahara said on Friday it had
Five-Year Plan (2012-13 to has gone up. The decision will data, banks issued over Rs peak level of 9.25 per cent, the a caveat in the Supreme Court money from the public through filed a special leave petition in www.business-standard.com
2016-17). +6 be taken in the asset-liability 70,000 crore of CDs in the fort- full impact of this has not yet fil- claiming that any petition on optionally fully convertible the Supreme Court seeking re- ALSO READ:
committee meeting this night ended March 11, 2011. tered through into deposit its ongoing case against two Sa- debentures. lief against the Allahabad High APRIL 16: Sebi public notice against
month,” an official said, adding This was at a time when short- costs,” a report by Morgan hara group entities cannot be A Sebi counsel said the Court’s April 7 order vacating Sahara group companies
ZTE plans for India this is necessary to protect net term rates were hovering Stanley said. SBI’s NIM was at decided without its knowledge. caveat, filed on Saturday, aims a stay on an earlier Sebi direc- www.business-standard.com/432438/
Despite security concerns interest margins (NIMs). A 25 around the 10 per cent level. 3.40 per cent in the first nine
about the use of Chinese basis points rate hike is a pos- The increase in cost on the months of 2010-11.
telecom equipment in sibility, he added. liabilities side will eat into mar- Banks have resisted a rate
India, ZTE Corporation has According to the official, the gins, if not passed to the cus- hike since RBI’s policy rate
said it is mulling a cost of funds has gone up as the tomers. According to a report hike of 25 bps in mid-March.
manufacturing plant in the bank offered high rates for de- by ICICI Securities, the full- With inflation hovering around
country to tap into the posits, both for retail and bulk quarter impact of higher lend- 9 per cent, much above the
growing market, especially deposits, in the last couple of ing rates and subsequent de- comfort zone of the central
3G services. months. Most of the banks had posit rate hike by banks in the bank, more hikes in policy rates
offered higher rates on deposits third quarter will be felt in the are expected.
during the last quarter of the last quarter. Tighter liquidity conditions
Hazare on Lokpal Bill previous financial year to meet “We had expected NIMs (of in the coming days may also
In an apparent softening of their yearly targets. Besides, SBI) to come off gradually, by push up interest rates. Gold-
stand, Anna Hazare has said offering home loans at a lower 40 bps over the next four quar- man Sachs had said in a recent
Parliament is supreme and rate has exerted additional ters. However, the pace of in- report that liquidity may re-
he will accept its decision pressure on SBI’s margin. crease in system deposits im- main tight due to government
on the Lokpal Bill. +5 Banks were also funding plies that the NIM compression borrowing, high credit-deposit
their deposit base via certifi- can be greater and could be ratio and a weaker balance of
cates of deposits (CDs) at high front-loaded as well. Although payments.

1Q&A1

Tatas plan `1.2-lakh-cr


‘We acquire for
either input needs
or new markets’ +2

investments in India
BS REPORTER & PTI
Mumbai, 17 April TATA SHINING
UNPERTURBED by a series „ Group to invest `1.2 lakh THE GLOBAL BIG &
of scams hitting India Inc in crore in five years in India MIGHTY LIST
NARESH NAYYAR the recent past, salt-to-soft- Revenues in 2010
MD & CEO, ESSAR OIL ware conglomerate Tata „ Projected group turnover by
Group has reaffirmed its India 2016: $150 billion
Exxon Mobil: $342.6 billion
commitment, lining up mega „ Group turnover in 2009-10:
investments in the domestic GE: $104.6 billion
BS SPECIAL power and steel sectors.
The group will be investing
$67.4 billion
„ 57% of revenues came
Toyota: $228 billion
from India in 2009-10 Source: Yahoo finance, Wikipedia
up to a whopping `1.2 lakh crore
($27 billion) in the next five years
across sectors in the domestic THE INDIAN BIG & MIGHTY LIST
market with an aim to double its RIL ADITYA BIRLA GROUP
current revenues to `6.64 lakh
DIGITAL CONSUMER crore ($150 billion) by then. Current Target Current Target
DOODLING @ The current turnover of the turnover
$80 billion turnover
$65 billion
GOOGLE group is nearly $68 billion, up
from about $8 billion 10 years
$ 44 billion by 2020 $30 billion by 2015
Adds more fun, colour
ago. In 2009-10, about 57 per
to its homepage +11 cent of its revenues of $67.4 bil- When asked about the ex- so a diversified group with an
lion came from domestic pected revenue of the group annual revenue in excess of
BRAND WORLD operations. after the investment is made, $44 billion. RIL Chairman
STAR SETS A NEW The Tata Group, which has Chaukar said, “It will be more Mukesh Ambani in his last
FREQUENCY +10 over 90 operating companies, than double in less than five AGM speech had said his aim
Redefines rules with will put in half of the planned years. I think it will be around was to make RIL a $80-billion
investment in the power sec- $140 billion to $150 billion.” powerhouse by 2020 through
HD, fresh programming tor, while the other significant Just to put the numbers in its ongoing diversification
portions will be in the steel and perspective, in 2010, US multi- drives into power, shale gas
automobile sectors. national conglomerate Gener- and financial services.
In an interview to news al Electric Company (GE) had Even Aditya Birla Group,
agency PTI, Tata Industries made $104.6 billion in rev- currently a $30-billion corpo-
Managing Director Kishor A enues. On a trailing 12 months ration, has ambitious plans to
Chaukar said, “We have be- basis, US energy giant Exxon grow the empire with a target
come a significant player glob- Mobil had a $342.6-billion of $65 billion in group turnover
ally in each of the sectors that turnover in December 2010, by 2015.
we are present in. In the next while Toyota Motor Corpora- Chaukar said Tata Group’s
five years, the pace of growth tion, the global automaker, had investment war chest had been
of the group will continue... revenues of a little over $228 planned essentially for the In-
The current investment as- billion in FY2010. British-Aus- dian market. Other than the cash
sessment for the next five tralian mining giant Rio Tinto guzzling power and steel space,
years is around `1.1 lakh crore Group clocked $56.5 billion in significant investments would
to `1.2 lakh crore.” Tata In- the same period. go into the auto, telecommuni-
dustries is one of the invest- RIL Group, India’s largest cations and chemicals sectors.
ment arms of Tata Group. private sector enterprise, is al- Turn to Page 16