Sunday, August 31, 2008

HDIL board allots bonus equity shares


The board of directors of Housing Development (Q, N,C,F)* & Infrastructure (HDIL) through its finance committee meeting has made the allotment of 61,220,595 equity shares as bonus to the shareholders who are registered as members as on record date i.e. Aug. 22, 2008.

The company is in the process of crediting the shares to the shareholders and it will be credited within two weeks time.

Housing Development and Infrastructure is a Mumbai-based company primarily engaged in the development of residential, commercial, retail properties and is also involved in the slum rehabilitation scheme.

Shares of the company declined Rs 4.3, or 1.44%, to trade at Rs 294.9. The total volume of shares traded was 252,649 at the BSE (11.31 a.m., Wednesday).

Cement shares buck weak market


The market remained subdued in early afternoon trade as rising crude oil prices weighed on the sentiments. The BSE 30-share Sensex was down 51.11 points. Index heavyweight Reliance Industries staged a comeback from day’s low. The market breadth was negative. Global cues were mixed.

As per reports, marketwide rollover of positions from August 2008 series to September 2008 series stood at 62% while that of Nifty was at 56%, as of Wednesday, 26 August 2008. The rollovers are in line with those in previous series. August 2008 derivatives contracts expire today, 28 August 2008.

Inflation based on the wholesale price index is forecast to have risen to a fresh 16-year high for the year through 16 August 2008. The government will release the inflation data after market hours today, 28 August 2008.

On the New York Mercantile Exchange, October 2008 crude rose $1.88 at $118.15 per barrel, yesterday, 27 August 2008 on fears that Tropical Storm Gustav could interrupt oil and natural gas output in the Gulf of Mexico.

At 12:25 IST, the BSE 30-share Sensex was down 51.11 points or 0.36% to 14,245.41. Sensex gained 50.40 points at day’s high of 14,347.19 hit in early trade. At the day’s low of 14,221.83 struck in mid-morning trade, the Sensex lost 74.96 points.

The S&P CNX Nifty slipped 9.30 points or 0.22% to 4,282.80

The market breadth was negative on BSE with 1302 shares declining as compared to 953 that advanced. 111 remained unchanged.

The BSE Mid-Cap indices fell 0.26% to 5,671.89 and the BSE Small-Cap index lost 0.33% to 6,836.97

The total turnover on BSE amounted to Rs 1391 crore at 12:30 IST as compared to Rs 976 crore by 11:30 IST.

Among the 30-member Sensex pack, 17 declined while the rest advanced.

India's largest private sector aluminium maker by sales Hindalco Industries was trading at Rs 124.30. The stock started trading on an ex-rights basis today. The right issue is in the ratio of 3:7, priced at Rs 96 each.

Cement shares rose on fresh buying. North India’s largest cement maker by sales ACC rose 1.27% to Rs 565.60. It was the top gainer from Sensex pack.

Ambuja Cement (up 1.40% to Rs 81), UltraTech Cement Company (up 0.68% to Rs 598.65), and India Cement (up 1.14% to Rs 141.75), gained. As per a recent foreign brokerage report, cement prices are set to decline 15-20% by fiscal 2009-10 due to increase in increase in cement supplies.

L&T okays bonus issue, declares dividend


MUMBAI: Engineering and construction major Larsen & Toubro on Friday said it would issue one bonus share for every one equity share held by the existing shareholders.

The shareholders took a decision to this effect at the 63rd annual general meeting, L&T said in a regulatory filing to the Bombay Stock Exchange.

The stakeholders gave their final permission for bonus issue in the proportion of one equity share for every one equity share held by the existing shareholders, it said.

The company has also declared the dividend at Rs 15 per share, having a face value Rs 2 each, L&T added.

The company has fixed October 3 as record date for issuing of bonus shares, it said.

Thursday, August 28, 2008

Technical Buy Call: GUJARAT ALKALI - Rs 185.40


Technical Buy Call: GUJARAT ALKALI - Rs 185.40
1st Target: Rs 218 (4-6 weeks) 2nd Target: 227 (12-14 weeks) Stoploss: Rs 169

Gujarat Alkali peaked to an intra-week high of Rs 243.75 in the week ended May 5, 2006, and then reversed the next few week, struggled a bit at 244 level before declining to post an intra-week low of Rs 125.25 in the week ended June 9, 2006. It next fell to an intra-week low of Rs 107.10 in the week ended March 9, 2007. From there it staged a recovery, almost took support on the 21-week EMA, and posted a series of progressively higher tops and bottoms. It peaked at an intra-week high of Rs 275.00 week ended January 4, 2007 and agains entered a corrective phase. Gujarat Alkali couldn’t sustain these levels for long, declined to post an intra-week low of Rs 120 in the week ended January 25, 2008. The recovered touched a high of Rs 203 in the week ended April 17, 2008. It fell again and almost gave a downward breakout from its upward sloping trendline. There is a possibility of upside from the 200 level.

Indian Bank - Possible Upward Move in Coming Days


The recent announcement by Indian Bank on hike in Benchmark Prime Lending Rates (BPLR) by 75 bps, from the existing 13.25 per cent per annum to 14 per cent per annum, will be helpful for the banks’ core business in lieu of the interest rate hike. The bank has emabrked on a rapid explansion and already opened new branches in the Bangalore circle. With its growth plan, it has attracted investors’ attention in the last few trading sessions. The counter is expected move upwards in the coming days. Taking into account the positives associated with this counter, you may add the scrip to your portfolio for quick gains.

Dalal Street Hot Chips: HDIL - 15-20% Gain Possible in Short Term


Anticipating a lower inflation after the all-time high in the last few weeks, interest rates are supposed to be stable for the time being. It could boost the potential for price appreciation in the banking stock as well as realty sector. As banking and realty, counters have highest correlation among them. HDIL being one of the major players in the realty market seems to be attractive at this price level. According some market sources, the scrip can have further potential for price appreciation of 15-20 percent in a short-term period. Therefore, investors with short-term interest can think of taking an exposure in the counter.

GMR Infra Becoming a “global airport company”


The “airport” company of India is making big news once again, in the international arena. GMR Infra which was successful in winning the bid for building Turkey’s airport is now expanding its horizons far and wide. Russia, which is privatizing its airports, has invited bids for modernizing the third largest airport in Russia – the Pulkovo airport. GMR Infra has been identified as an eligible bidder and the second round of bidding is scheduled to open soon. It is currently in the process of doing a due diligence and if it finds the project viable, it is expected to take the final call soon.

If GMR Infra manages to win this bid, it will open a big door of opportunity. This airport is based in St.Petersburg and reportedly, one of the biggest aviation enterprises in Russia. As per the plans, it is to have two terminals, Pulkovo-1 and Pulkovo-2. This will be a great opportunity for GMR to showcase its abilities. And if GMR wins this bid, it will mean that other European countries which are also in the process of initiating their airport modernizations, will look at GMR as one of the best options available. The winning of this bid for the Russian airport would make GMR known globally as the “Indian airport company”! Fingers crossed!

Technical Buy Call: Bata India - Rs. 167.85


Technical Buy Call: Bata India - Rs. 167.85
1st Target: Rs 192 (4-6 weeks) 2nd Target: Rs 201 (12 -14 weeks) Stoploss: Rs 156

Bata India bottomed out by posting an intra-week low of Rs 096.00 during the week ended August 5, 2005, and these levels have not been seen since. The scrip struggled a bit but finally overcame and took support on the 21-week EMA, launched into an intermediate uptrend, posted a series of progressively higher tops and bottoms and rallied to peak at an intraweek high of Rs 166 during the week ended September 23, 2005. Bata India couldn’t sustain these levels and entered a corrective phase, psoting Rs 133.50 during the week ended October 14, 2005. The scrip commenced its uptrend from here, rebounded and again launched into an intermediate uptrendand reached the peak at an intra-week high of Rs 329.25 in the week ended May 12, 2006. The next corrective phase took long time and the scrip rallied to a peak at an intra-week high of Rs 296 in the week ended January 4, 2008. Currently, Bata India seems set to move up after a correction. The mechanical indicators are supporting the move and the daily picture is looking better. An upside lies ahead.

Saturday, August 9, 2008

Realty Mutual Funds bypass FDI norms: RBI

The Reserve Bank of India (RBI) has taken a note of the foreign investments coming through Real Estate Mutual Funds (REMFs).
The bank has sent a letter to the union finance ministry pointing out that REMFs allow foreign institutions to invest and thus lead to indirect FDI in the real estate sector.
Realty Mutual Funds bypass FDI norms: RBI

Wednesday, August 6, 2008

Air Deccan plans to set up India’s largest hotel chain


After changing the shape of India's aviation business, Captain GR Gopinath is all set to spearhead a new venture in hospitality.

The man behind India's budget airline is now looking to give the country its largest hotel chain. Sources say that GR Gopinath, former promoter of Air Deccan, has tied up with an investment banker from the US to set up a chain of 1,000 hotels across 100 towns and cities over the next 10 years. The hotels are expected to be in the mid-tier and budget categories. And depending on the location, they will have between 50 and 125 rooms. That's an average investment of Rs 50 crore on each property.

The company is said to be in talks with PE players as well as institutional investors as a majority of the funds will need to be raised externally. Due to the large investment involved, promoters are said to be looking at a split business model. While they will own and operate a large number of hotels, many will also be marketed under the franchise route.

The projects are expected to go on stream by the end of the year. The company, Deccan Hospitality, is expected to make a formal announcement next month. Though the brand name for the hotel chain is yet to be finalized, Gopinath and his team are currently on a hiring spree for talent to head the business from overseas.






RPower in cash chase to fund projects

Reliance Power Ltd (RPower) is planning to raise nearly Rs 9,000 crore in what could be the country’s largest rupee-denominated loan this year to fund the Sasan and Krishnapatnam mega power projects.

The Anil Dhirubhai Ambani company, which is currently creating 28,200MW generation capacity, said the first unit of the Sasan project would be commissioned in December 2011 and the entire project was expected to be commissioned by March 2013.

For the 3,960MW Sasan project, the company has already awarded the engineering, procurement and construction contract to Reliance Infrastructure Ltd.

RPower has received the Reserve Bank of India’s approval to raise $2 billion (Rs 8,500 crore) each in external commercial borrowings (ECBs) for both the Sasan and Krishnapatnam projects.

Sources here indicated that the rupee-denominated loan would form part of this fund-raising programme and the ECBs could be accordingly modified.

RPower has engaged the investment banking subsidiary of a state-owned bank to raise funds for the project. The loan, which will have a 15-year tenure, could be secured in a couple of months.

The company is also in negotiations with a few foreign banks to raise funds for the projects, sources said.

RPower, which came out with an initial public offering early this year, saw a fantastic response as it received subscriptions of over $100 billion from foreign investors. The company had mobilised nearly Rs 11,563 crore from the IPO.

There were 50 lakh retail applications in response to the IPO, making it one of the biggest in the world.

While the company fixed an issue price of Rs 450 per share, the issue had a dismal opening when it was finally listed on the bourses.

The company was forced to issue bonus shares to investors to compensate them for the losses they had suffered because of the fall in the stock price.

The RPower stock closed at Rs 166.95 on the Bombay Stock Exchange today.







ACC top execs get Holcim shares


Shares of Swiss cement maker Holcim is now part of the remuneration of the senior managers of ACC. This is intended to increase the alignment between the world’s second-largest and India’s largest cement firm.

As many as 55 of ACC top managers have started receiving Holcim stock this year. Under the scheme in force, a part of the annual performance bonus of eligible ACC managers gets converted into the Holcim stock at a fixed rate, which is at a discount from the ruling market price of the stock. These shares come with a lock-in period. ACC CEO Sumit Banerjee confirmed the development.

A cement analyst said the Holcim stock is seen to be a better option by ACC managers than shares of their own company. “It may be perceived as a good gesture by Holcim that it cares for ACC executives. Plus, the stock option allows ACC managers to benefit from the good work done by their colleagues in other Holcim outfits across the globe. This is a nice feeling,” he added. ACC had scrapped its own employees stock option plan (Esop) in 2005.

The fundamental idea is to align the interests of senior ACC employees with that of the company’s largest shareholder. “ACC executives need to get used to the idea that they are working to improve Holcim’s valuation,” said a person familiar with the situation. According to another analyst, the alignment with Indian operations is critical for Holcim. “Holcim earns nearly 17-18% of its global topline in India. So, its only natural that it would attach importance on further consolidating the alignment with Indian outfits,” he added.

There is as yet no such programme at its other Indian outfit — Ambuja Cement. However, experts said a similar stock option may be launched at Ambuja Cement as well. For the record, Holcim controls a fourth of Indian market with an annual production capacity of 39 million tonne.





End of an era


The GCC's reputation as a brand drug stronghold is coming to an end. MT explores how the rise of generics is proving a success story for the subcontinent.

Start with a pharmaceutical market built almost entirely on imports. Add in a society weighted by chronic diseases, seeking every way to clamp down on healthcare costs.

Factor in the number of brand name drugs set to lose patent protection over the next few years. What you end up with is a prediction that over the next five years, generic drug manufacturers will dominate the GCC's pharmaceutical industry. And the biggest players, say experts, are likely to be Indian





Tuesday, August 5, 2008

Is Gold Cheap or Oil Expensive?




Crude Oil Prices have corrected from the highs near the $150 per barrel levels to near the $120 levels. Is the correction over or is there more good news to come in terms of lower crude oil prices? No one will have a definitive answer.

The Gold / Oil ratio remains near its all time lows which suggests that gold is seriously undervalued. Gold / Oil ratio refers to how much crude oil can be bought with one ounce of Gold. With gold at $930 per ounce and oil at $125 per barrel, the Gold/Oil ratio is at 7.4. The average for the last 40 years has been around 15. But does this mean gold prices are too low, or perhaps that crude oil prices are unsustainable at current levels and have to come down sharply and quickly. Your viewpoint depends on which side of the fence you are sitting on.

Gold Oil Ratio
Gold Oil Ratio
Source: Bloomberg

If one were to take a pragmatic view, it seems likely that the future scenario could be something in between the two viewpoints. Given the no. of factors influencing crude prices one can’t be really sure of the trend of crude oil prices in the future. However one can be reasonably sure that the long term relationship of Gold to Crude oil will revert back to its historical average of around 1: 14.5 versus 1: 7.4 currently. This can happen either by a big fall in crude oil prices or gold prices moving up much higher.

There is a lot of uncertainty over which way gold prices will move in the short term. . However a no. of international and domestic gold traders and analysts are bullish on Gold and have been predicting that gold would soon start moving northwards and some have predicted that it will reach $2000 per ounce in the medium term.. Many Commodity Experts and Analysts also believe that Crude Oil prices are unlikely to slide below $ 100 per barrel mark.

If Crude Oil Prices fall further what will happen to gold prices? Recently Crude Oil Prices came down from higher levels and Gold Prices also came down. Therefore a correction in Crude Oil prices led to a correction in Gold prices.

International crude oil prices increased by more than 47% this year when it reached its all time high of around $145 whereas international gold prices went up by only 14% during the same time frame. This shows that record crude oil prices were not followed by record gold prices.

We believe that the gold / oil ratio will align with the long term average i.e 14.5. Even if crude oil prices correct to $100 levels which experts say could be the new floor price, then gold has to rise to $1450 to get back to its historical average. There are various forecasts of crude boiling to $150 levels and above. In such ascenario, to adjust to the historical average, gold prices will have to rise above $2100.

Gold / Oil Ratio
Long Term Average 14.51
Current Crude Price ($/barrel) 125
Corresponding Gold Price adjusted to the long term ratio 1814
Scenario Analysis
Crude Prices($ / barrel) Gold Prices Adjusted to
Long term Gold / Oil Ratio
($ / troy ounce)
65 943
80 1161
90 1306
100 1451
120 1741
140 2031
150 2177
180 2612
200 2902
* The Table above is purely illustrative and indicates potential gold prices assuming gold / oil ratio at 14.5. Actual Gold / Oil ratio may be higher or lower than 14.5.Past performance may or may not be sustained in future.

This recent correction has indeed provided long term investors an opportunity to buy / add more gold to their portfolio. Do not miss the bus this time, buy gold now.

Buy Gold... Buy Gold ETF. Now!






Monday, August 4, 2008

Learn to use equity loss to reduce tax liability

Every dark cloud, they say, has a silver lining. For investors who have lost over 25% of their portfolio in the recent Indian equity market crash, it would seem rather difficult to believe this. While little can be done about the actual losses that you may have suffered, there is a way to use them to reduce your income tax liability on other gains. Let us look at one such method in this article.

A brief excursion into the relevant tax rules would be in order first. Long term capital losses can be set off only against long term capital gains. However, short term capital losses can be set off against both short term and long term capital gains. In the context of listed shares and mutual funds (both debt and equity), a period of over one year is long term, and anything less than that is considered short term. The corresponding time period for real estate and gold is three years.

For easy reference, let us put down the currently prevailing short term and long term capital gains tax rates for each of these categories below:

Asset class

Short-term capital gains tax rate

Long-term capital gains tax rate

Listed shares

15%

0%

Equity mutual funds

15%

0%

Debt mutual funds and FMPs

33.60%

Lower of 10% non-indexed or 20% indexed

Real estate

33.60%

20% indexed

Gold

33.60%

20% indexed

Of course, all these capital gains accrue when the asset is sold or transferred out.

The central theme of the idea is to use the equity market downturn to book short term capital losses. And then utilise these booked losses to set off long term or short term capital gains on gold, real estate or debt fund portfolios.

Let us look at this theme in more detail through an example. You may note that in this example, we have not taken any view on the portfolio allocation strategy per se. For instance, to determine whether you are over-weight on real estate or under-weight on equity, etc, a closer analysis of your individual portfolio is called for. Rather, we are only looking at a general strategy you can adopt to minimise tax liability within the boundaries dictated by your portfolio allocation strategy.

Assume you had a portfolio over Rs 10 lakh of investments in shares or mutual funds. Most of these investments were done late in 2007 or in early 2008. After the market crash, you find yourself looking at a portfolio value of only Rs 7 lakh today. Assume you have decided to weather this downturn and hold on to equity portfolio, either because you are willing to wait for the next up-cycle, or because your portfolio allocation suggests that. If you simply hold on to your shares, and they again rise to Rs 10 lakh in two years time, you would have squared off your losses. There would be no capital loss (or gain) that you would have. Thus, if you have any other capital gain this year � say from selling some real estate or debt mutual funds, you would incur capital gains tax on those, as per the table given above.

There is, however, a better strategy. On one of the days when the market is on a downturn, you can sell all your shares purchased over the last year. Immediately, you buy another portfolio (this can even be the same old portfolio) at the prevailing market rates. Thus, you have booked a short-term capital loss of Rs 3 lakh; and the purchase value of your current portfolio is Rs 7 lakh.

Now, you can use this capital loss to set off gains from debt mutual funds, gold or real estate in the year. In fact, you might actually want to actively book profits in real estate or gold if you believe these prices are at their peaks and are likely to come down in future. You can book just enough gains from these sales, to ensure your next capital gains tax liability over the year is zero.

To be sure, your cost value of the new equity portfolio would be only Rs 7 lakh (as against Rs 10 lakh in the earlier �hold� strategy). Thus, if you were to sell it within a year at higher value, all the losses you had shown earlier would be wiped out in the gains that would accrue here. To avoid this, it would be advisable to hold on to the new portfolio for atleast a year, after which capital gains tax is anyway zero.

The transaction cost of doing all this is likely to be minimal: 1% - 1.5% of your portfolio depending on your equity broker. By doing the sale and purchase transactions with minimal time lag, you are likely to minimise market risk of fluctuation in the interim. You can also do this if you had mutual funds instead of shares. A simple switch transaction from one fund to another would be counted as a tax event, and hence you could book your losses there. After all, this strategy is completely agnostic to market view and future movement. It is simply a way to use already accrued losses to save your tax outflow.





Inflation - How to reduce its impact on your pocket


If is an earthquake in a particular region, then all individual in that region will get affected by the earthquake in some way or the other. No one will be able to escape it, whether he is male or female, rich or poor, child or old. This is because the impact of earthquake is in the system. Some other examples of risks that exist in the system are political situations, war etc. Similarly since inflation exists in the system, everyone will be affected in some way or the other and there is no way one can avoid inflation.

Economic meaning of inflation is �general and progressive rise in prices.� However more apt explanation for inflation would be to state that it is a phenomenon which exists in the system and slowly affects all parameters of finance. We can say it is a silent killer. Further since inflation exists in the system there is no way to escape it.

Secondly, inflation is always prevalent in the system and therefore it continuously affects us. Sometimes the impact of inflation is high and sometimes it is less. However it is never absent unless economy is contracting. Cost of a masala dosa in 1987 was Rs 3.50. Same masala dosa in 1997 costed Rs 14.00. If the rise in prices continues at same rate then in year 2017 masala dosa will cost Rs 224.00. Similarly cost of Colgate toothpaste in 1987 was Rs 8.05. It increased to Rs 18.90 in 1997. If it keeps progressing at same rate in 2017 we will have to pay Rs 104.00. All of us witnessed the rise in prices of masala dosa and Colgate toothpaste. However since it was slow we did not realize how large its impact is in the long run.

There are four pillars of finance (i) Assets (investments) (ii) Liabilities (Borrowings) (iii) Income (iv) Expenses.

Since inflation exists in the system, it affects all our investments. Assume we are generating 8%, 20%, 12% and 25% returns from debt, equity, gold and real estate respectively. If rate of inflation in the system is 11% than our real rate of return from debt will be 8% - 11% = -3%, equity returns will be 20%-11%%=9%, Gold returns will be 12%-11%=1% and real rate of return from real estate will be 25%-11%=14%. Thus inflation affects all our investments.

During inflation, rate of interest in the economy rises. Therefore invariably our rate of interest on borrowing will rise. We will have to pay higher rate of interest on our borrowings. Cost of home loan, car loan etc. will go up. As far as possible avoid borrowings and if there is loan, get out of it as soon as possible.

Since value of rupee depreciates due to inflation, our income can buy lesser goods and services. Thus inflation indirectly reduces value of our earning.

Lastly inflation has direct impact on expenses. Since inflation increase general rate of prices, all goods and services become expensive.

While we cannot escape inflation we can try and reduce its impact on us. From investment perspective we should invest in assets which can generate returns higher than rate of inflation. These are equity, Gold and real estate. However these asset classes are highly volatile in near term.

Sure shot way to beat inflation, is to increase our level of income. However it is not possible for individuals to increase level income immediately. Therefore during higher inflation period if possible find out avenues to increase income level. This is easier said then done.

Learn to control your expenses..

Expenses are something that can be tackled. Before discussing strategies to control expense first let us try and understand categories of expenses. Broadly there are two categories of expenses (i) Mandatory (ii) Voluntary. Within each of these categories there are fixed and variable expenses e.g. Mandatory fixed expenses e.g. school fees, house rent etc. Next these are Mandatory variable expenses like grocery, medical and health care expense etc. There is absolutely no one way can avoid mandatory expenses.

In case of voluntary expenses again there are two categories e.g. Voluntary fixed expenses e.g. Gymnasium fees, club membership etc. Voluntary variable expenses include eating out, vacations etc. While the inflation is rising we should cut down on voluntary variable expenses at once. Also as and when renewal for voluntary fixed expenses come up same can be reduced or stopped completely.

Even after controlling voluntary expenses if we are struggling to make two ends meet, then we should follow step down process. Let us consider example of cost of transport to work, a mandatory variable expense. Using a chauffer driven car is the upper most step and walking is lower most step. After deciding on these two find our other options by lowering one step. After chauffer driven car next lower step could be to self drive car to work. Step lower than that could be car pool and step lower than car pool could be to use public transport. Once the ladder is constructed we should find out optimal suited option.

Invariably we focus too much on risks which are transparent like volatility of equity market, illness in family etc. Unfortunately a non-transparent risk like inflation gets ignored. However, just because we cannot see impact of inflation on our finances, it does not mean inflation does not exist. Inflation is a silent killer and if we ignore it, one day it will kill us.





Too broke to pay back your loan?


THESE days, securing a loan is easy.

Repayment is the tough bit. And when you don't repay on time, the recovery agent may come knocking at your door. You might have read newspaper reports on how they 'tackle' those who default.

But what if you have a 'genuine' reason for defaulting on your loan? "Try for a settlement with the bank," says Ashok Kargutkar, a counsellor at Abhay, a debt-counseling centre. The operative word is 'genuine' and if you can prove the genuineness of your case, the banks may settle.

How it works:

1. Submit documents to prove you are bankrupt and cannot pay the outstanding amount. The most relevant document would be an affidavit that states you have no assets -- property or estate -- that you could use to pay it back. Consult your lawyer before declaring bankruptcy to the court.

2. If you do file for bankruptcy, the bank will not waive off the entire amount. You still have to pay an amount that is mutually agreed on, between you and the bank. "This amount largely depends on your ability to pay as well as the bank's policy towards such cases," says a senior bank official.

3. The bank may extend your repayment period and break the outstanding amount into equal monthly installments to facilitate repayment.

4. If you have credit card debt where the interest rates are 45 per cent per annum, you could go for a cheaper loan -- a personal loan.

5. If your bank agrees to a settlement, you could further request for an extension of the duration of repayment.
When the bank won't settle

Despite declaring bankruptcy, if recovery agents and banks continue to harass you, approach a debt-counselling centre such as Abhay (a trust funded by Bank Of India) and Disha (supported by ICICI Bank).

These centres focus on three things: financial education, credit counselling and debt management.

"Most people are in debt due to their reckless spending habits. We ask them to discipline their spending and manage assets to pay off debt," says Kargutkar.

"We guide those with genuine problems. If banks and financial institutions are unresponsive, we take up the matter with the respective authorities."

Ashok's advice: Stick to your budget. NEVER spend beyond your means. Be financially aware.




Sunday, August 3, 2008

India's Yes Bank Q1 net profit 543.3 mln rupees


India-based Yes Bank Ltd. reported first quarter to June net profit rose to 543.3 million rupees from 360 million a year earlier, and total income rose to 4.86 billion rupees from 3.48 billion.

At 1:29 p.m. local time Yes Bank shares were up 2.40 percent at 130.15 rupees, while the benchmark Sensex was down 0.40 percent at 14,230.62 points.





Friday, August 1, 2008

Suzlon starting a shipping division


Tulsi Tanti, Chairman, Suzlon said that the company has bagged a 106.5 MW order from DLF. He informed CNBC-TV18 that the company’s order book stands at 3040 MW and is worth Rs 16,491 crore. The company has raised its pricing by 3-4%.
Suzlon is starting a shipping division in Singapore. To head the shipping company they have recruited Mr. Bansal a young twit who has ruined a very successful shipping through unpleasant ways. He has been involved in many issues and like old habits die hard this will certainly continue in this new venture. To make matters worse he has recruited more of his so called chamchas from there so he can be surrounded by his soldiers so he can do the same as what he did before with their help. I believe the company