Lakshmi Vilas Bank hikes interest rates on NRE term deposits

Private sector lender Lakshmi Vilas Bank has hiked interest rate on Non-Resident External (NRE) term deposits with immediate effect.The hike in interest rates on NRE term deposits was based on the deregulation of interest rates by the Reserve Bank, LVB said in a statement. According to the revised structure, the interest rates for deposits with a period of one year and above but less than two years has been revised to 10 per cent from the existing 3.82 per cent. For term period of two years and above, but less than three years, it has been increased to 8 per cent from 3.51 per cent (existing). For those deposits that are up to three years and...

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Bank not at fault if ATM card misused'

A person cannot claim damages from bank if he fails to immediately block his lost ATM card and money is unauthorisedly withdrawn by using the card, a district consumer forum has said.It said the bank would have been liable if the transaction of withdrawal of money took place after blockage of the card. A bench of Central Delhi District Consumer forum passed the order while dismissing a complaint filed by a Faridabad resident Deepa Singh alleging that bank is liable for the compensation as it allowed illegal withdrawal of money from her account after she lost her ATM. "Singh was having the PIN number and without that PIN number, the ATM card could...

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CLSA cuts India's growth f'cast to 6.7%

Brokerage CLSA cut its forecast for Indian gross domestic product (GDP) growth to 6.7 percent for the current fiscal year ending March from its earlier projection of 7.3 percent, citing cyclical deceleration caused by high interest rates, policy inertia and the adverse impact of global headwinds.On Thursday, the Reserve Bank of India governor said the economy is poised to miss the central bank's growth forecast of 7.6 percent for 2011/12 and the inflation outlook is uncertain. The government said in a mid-year review this month that it expected the economy to grow by 7.25 to 7.75 percent in 2011/12, down sharply from an estimate of 9 percent...

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US venture-funded firms: Indians on top

Nearly half of America's top 50 venture-funded companies were started by immigrants and the most common country of origin for these founders was India, reveals a study by US National Foundation for American Policy (USNFAP).The research by USNFAP, a non-profit, public policy research organisation, finds that 48 per cent, or 24 out of 50, of the US' top venture-funded companies had at least one immigrant founder and the most common country of origin for these immigrant founders was India, followed by Israel, Canada, Iran and New Zealand. Other founders and co-founders were born in Italy, South Africa, Greece, Norway, Germany, the UK, Singapore,...

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Ravi Ruia steps down as Chairman of Essar Energy

Essar Energy Chairman Ravi Ruia today announced his decision to step down from the post amid CBI claiming that Essar group suppressed facts related to its equity holding in Loop Telecom, an allegation denied by the conglomerate.Essar Group is surprised and disappointed by the stand taken by the CBI, Essar Energy said in a statement. Meanwhile, Ravi Ruia has voluntarily decided to temporarily step aside as Chairman but would continue as a director of Essar Energy. Prashant Ruia, presently the Vice Chairman, would take over as interim Chairman. “This decision follows allegations by India's Central Bureau of Investigation (CBI) that Ruia, certain...

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RBI raises alarm over corporate loans AGENCIES

The Reserve Bank of India (RBI) today said Indian companies may find it difficult to repay loans as rising input cost is putting pressure on their profit margins."The outlook of the firms shows signs of weakness which can be attributed to rise in input prices, interest rates, slackening demand and some infrastructural constraints. Servicing of loans by them, therefore, may come under stress," said the RBI's Financial Stability Report (FSR). It said the profit margin of the corporate sector has dipped, which indicates its reduced pricing power in the wake of rising raw material and input costs. "The rising share of interest cost in sales as well...

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NHAI to launch tax-free bonds

Unfazed by uncertainty in the capital markets, the National Highways Authority of India (NHAI) will launch its first ever tax-free bonds issue of Rs 10,000 crore on December 28.The issue will close on December 30, a senior Road Transport Ministry official said. The official further said the interest (coupon) rate of the bonds issue will be between 8 to 8.5 per cent, while refusing to disclose the exact number. "A formal announcement will be made tomorrow by Road Transport Minister C P Joshi and you should wait for that," the official said, adding that the money raised from it will be used to partly finance various National Highways projects under...

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SBI, DDA, PNB babus fined for corruption

Over 200 government officials have been penalised for their alleged involvement in corruption by the Central Vigilance Commission (CVC) during September this year. Out of the total of 201 government employees, the highest number of 46 were from Central Board of Excise and Customs, 29 from Syndicate Bank, 20 from State Bank of India (SBI) and 13 each from Delhi Development Authority and Ministry of Railways among others, a CVC report said. Besides them, 11 officials each from Bharat Sanchar Nigam Limited, Allahabad Bank and Punjab National Bank, five each from United India Insurance Company Limited and Ministry of Urban Development have also been...

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Govt OK's PFRDA Bill change, allows FDI

The government today approved amendments to the PFRDA Bill 2011 (Pension Fund Regulatory and Development Authority) while agreeing to the proposed 26 per cent foreign direct investment (FDI) in the pension sector but refrained from providing assured returns to subscribers in the proposed law. The government had decided not to mention FDI cap in the legislation itself for retaining the flexibility of changing it through an executive order. The 26 per cent FDI cap is to be mentioned in the regulations to the legislation. The changes to the PFRDA Bill were approved by the Union Cabinet at its meeting here. The Bill, which has already been scrutinised...

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