Business Line ND 23/02/2010, p_2

Stimulus withdrawal will not hurt auto sector: Maruti Auto-maker hopes to maintain sales numbers Our Bureau New Delhi An early withdrawal of stimulus measures by the Government is unlikely to have an adverse effect on the auto industry, according to Mr R. C. Bhargava, Chairman, Maruti Suzuki Ltd. "If the overall economy is able to grow, a small increase in excise duties would not have a negative effect on the auto industry. However, if the entire stimulus is withdrawn at once, the growth in the economy will be hampered, which in turn, will affect the automobile industry as well," he said on the sidelines of the 54th Foundation day of All India Management Association (AIMA). Mail Today ND 23/02/2010, P27 Chidambaram says timidity stops growth "TIMIDITY In approach is causing Indian business organisations to lose global opportunities, while resistance to change is stopping entitles from growing back at home," home minister P. Chidambaram said on Monday. "We are missing out opportunities because of our timidity, due to fear of the unknown... because of procedures," he said presenting the All Indian Management Association (AIMA) awards, but did not elaborate. Indian businesses have been expanding overseas, but the last two years have seen no major deals due to the economic crisis. Chidambaram said success could be achieved by breaking the rules. SBI sees base rate at 8 per cent NEW DELHI State Bank of India today said that the proposed base rate for banks seemed to be around eight per cent "Base rate at this point seems to the around eight per cent for banks," SBI chairman Mr OP Bhatt said on the sidelines of an AIMA event here. The Reserve Bank of India has proposed to replace the benchmark prime-lending rate (BPLR) with base rates from April this year. The base rate is the lowest rate that the bank can charge from a customer and is intended to bring about more transparency in the lending operations of banks. SBI is at present looking into all the aspect of the base rate system proposed by the Reserve Bank and is yet to take a final call based on asset liability situation, he said Asked if SBI had approached RBI for more time to migrate to the base rate regime, he said. Hindustan Times, ND 23/02/2010, P-25 Base rate to bring clarity: Bhatt HT Correspondent NEW DELHI: The proposed new "base rate" regime would prevent large corporations from taking an advantage of ample liquidity in the banking system and negotiate competitive interest rates, State Bank of India (SBI) chairman OP. Bhatt said. In a far-reaching reform measure, the Reserve Bank of India (RBI) proposed to introduce a new concept called "base rate" that would serve as the minimum rate for all loans. "Corporate lending is being done on fairly competitive rates but that is for large corporations, which is a function of high liquidity," Bhatt told reporters on Monday on the sidelines of a function organised by the All India Management Association (AIMA). Economic Times ND 23/02/2010, P9 Managing India - From Dreams to Reality, The Way Forward – Innovate and Experiment February 22,2010, was a day (of pride, for All India Management Association (AIMA), the apex body for management in India as it celebrated 54 years of its being. It also was a happy day for the management professionals across the country as this is the day when the country celebrates its National Management Day. These were reasons enough for industry big wigs, students of management and several others to come together on a single platform at Hotel Le Meridien and share their experiences and vision for management in India. Economic Times ND 23/02/2010, P16 Lending rates will be stable for 5-6 months: Bhatt No Change In Home Loan Rates Soon As Credit Offtake Is Muted And Liquidity Is Benign Our Bureau NEW DELHI INDIA'S largest lender, the State Bank of India (SBI), on Monday said banks' lending rates are expected to remain stable in the next 5-6 months because of the slow credit offtake despite RBI hiking the cash reserve ratio by 7 5 basis points. 'Lending rates are unlikely to move up in the next 5-6 months,* SBI chairman OP Bhatt said on Monday on die sidelines of an event organised by AIMA here. Mr Bhatt, however, said there was some movement on deposit rates. He pointed out that a couple of banks have already increased their deposit rates. "As far as we are concerned, there is no change expected soon," he said. The bank will also continue with its teaser home loan rates till April this year. 'Credit offtake is still muted and there is enough liquidity in die system. Home loan rates would remain stable for some time," he said. Hindustan Times, ND 23/02/2010 Prez concerns: Rising prices, ties with Pak PARLIAMENT ADDRESS Govt wants meaningful relationship with neighbour HT Correspondent NEW DELHI:  Relief to the "aam aadmi from rising food prices and exploring the possibility of "meaningful ties" with Pakistan are the two objectives the government has set itself this year. "India is ready to explore a meaningful relationship with Pakistan if it seriously addresses the threat of terrorism and takes steps to prevent terror acts against India," President Pratibha Patil said in her address to Parliament on Monday. The foreign secretaries of the two sides meet on February 25. Stating that "zero tolerance" to terrorism is India's principle policy, she said infiltration from across the border in J&K has gone up and the government needs to keep a constant watch on global terror groups. On price rise, Patil said people were under "unhappy pressure" and the government will give the "highest importance" to providing relief. Speaking of the Centre's commitment to a law to ensure food security, she said 30 lakh tonnes of wheat and rice would be released in the open market in two months. Hindustan Times, ND 23/02/2010, p-11 Mice in the rat race EDUCATION SCANDAL Competition for Admissions into professional courses has spawned dubious coaching institutes. Now, students are up in arms against them Sumant Kumar of Gopalganj district in Bihar, adjoining Uttar Pradesh (UP), had been taking coaching classes at a Patna institute for the entrance exam for the Indian Institutes of Technology. He has been asked by the proprietor of a private lodge in Patna to vacate his room because of the agitation against coaching institutes in Bihar.' Students preparing for the entrance tests for a year have been left in the lurch. Those taking medical entrance tests also have a similar tale to recount. Students are unhappy with such institutes because of the poor quality of teaching and infrastructure. About 10 days ago there was a shutdown in Patna and some other cities of Bihar in protest against this. Indian Express ND 23/02/2010 A super UGC? THE Draft National Commission for Higher Education and Research Bill (NCHER) is quite simply the most outrageous proposal to centralise power in higher education that could be imagined. Instead of rationalising regulation, it creates a structure that makes the UGC Act look positively more benign. In its current incarnation, the bill conforms more to the dreams of a super UGC that Arjun Singh had floated than it does to the regulatory reform that the Knowledge Commission, Yashpal Committee and Kapil Sibal himself had promised. The bill is deficient on so many grounds that it would take several pages to expound its infirmities. But to begin with, it displays minimal grasp of either the first principles of regulation or the context in which the debate for a new regulatory body had started. The problem with the current structure was three-fold. First, the UGC had acquired overweening powers. In its original and much better crafted 1958 Act, it was entrusted with "coordination" of higher education. Slowly, this was transformed into a mandate of "standardisation" and "homogenisation". Second, the UGC merged many functions: it became regulator, accreditation authority, funding agency, all rolled into one. And third, the whole institution seemed to diminish in authority, in part because of the politicisation of the appointments process. Instead of acting as a buffer between government and universities, it started doing the government's bidding. It started acting on the autonomy of public universities with impunity. And it had no transparent mechanism for authorising new institutions, resulting in the current deemed universities mess. Financial Express ND 23/02/2010, p-13 ICICI for 15% credit growth SBI expects rates to remains table for next6months Mumbai ICICI Bank on Monday said its loan growth in the next fiscal could go up to around 15 % on the back of a strong revival in demand in key-segments. The lender has already seen growth picking up in its home and auto loan segments, ICICI Bank MD & CEO Chanda Kochharsaid. Besides, the bank has seen improvement in the project financing in recent months and expects the trend to pick up further in months ahead. The Reserve Bank of India has a loan growth forecast of 16% for the current fiscal. State Bank of India (SBI) has already announced it would be able to achieve the target for the fiscal. Talking to reporters on Monday, Kochhar also ruled out any immediate plans to hike its deposit rates. However, HDFC Bank and IDBI have increased then-deposit rates follow-inga0.75%hikeintheCRR. Tribune ND 23/02/2010, P-15 Base rate for SBI to be 8 pc: Bhatt NEW DELHI The State Bank of India (SBI) today said the proposed base rate for the bank seems to be around 8 per cent. "Base rate at this point seems to the around 8 percent for the bank," SBI chairman O P Bhatt told PTI on the sidelines of an AIMA event here. The Reserve Bank of India has proposed to replace the Benchmark Prime Lending Rate (BPLR) with base rates from April this year. The base rate is the lowest rate that the bank can charge from a customer and is intended to bring about more transparency in the lending operations of banks. Asian Age, ND 23/02/2010 P-16 RBI to get proactive on customer complaints AGE CORRESPONDENT MUMBAI The RBI has started to take 'class action' in cases where banks are recalcitrant and fail to take action in favour of the depositors. According to the annual report of RBI Ombudsman, complaints against banks have increased. Foreign banks topped the list with complaints against them increasing by 91 per cent, followed by Indian private banks that have seen a 58 per cent increase in complaints. Public sector banks have witnessed a 29 per cent increase. The report was released by RBI governor Dr D Subbarao. The RBI governor mentioned a class action, for instance, that was initiated against a foreign bank regarding mode of calculation of interest rates. Similarly, a public sector bank was advised to recalculate interest rate on all the housing loans as per terms of the agreements entered into with all the borrowers without their application. Hindustan Times, ND 23/02/2010 P-1 MAOIST MENACE U-turn: Naxals want truce CALCULATED Kishenji seeks 72-day ceasefire, govt wary HT Correspondents NEWDELH/KOUWTA:  After killing 36 securitymen in West Bengal during the past week, the Maoists on Monday matched Union Home Minister P. Chidambaram's 72-hour ceasefire proposal with a counter offer. They agreed to halt violence not just for 72 hours but 72 days on condition that the Centre stops its operations against the outfit. "We are ready to observe a ceasefire for 72 days from February 25 to May 7," CPI (Maoist) politburo member Koteshwar Rao alias Kishenji told media organisations on the phone from an undisclosed location on Monday. The offer was made hours after President Pratibha Devisingh Patil lashed out at the Maoists for their cowardly actions and echoed Chidambaram's call to the left wing extremists to abjure violence and come for talks. . The offer came in the backdrop of a meeting Chidambaram wants to hold in Delhi with the chief ministers of West Bengal, Jharkhand and Bihar to discuss anti-Maoist operations. In New Delhi, Home Secretary G.K. Pillai said the government would consider the offer if there were no pre-conditions attached. But the home ministry later decided to wait till Tuesday to come up with a considered response.