BSNL declared 31st December and 1st January as blackout days for voice calls and reportedly collected more than double charges from its prepaid subscribers in Karnataka
State run telecom giant Bharat Sanchar Nigam Ltd (BSNL) has found a new and innovative formula to earn more revenues from its customers, especially pre-paid mobile subscribers. BSNL has informed its pre-paid subscribers from Karnataka circle that they would not get free or discounted rates for voice calling on 31st December and 1st January.
Most of the mobile operators declare certain days like New Year's eve and 1st January, and festivals like Diwali and Dussehra as blackout day for sending messages. This means, all messages sent on blackout days are charged at normal rates or at a higher rates, irrespective of the billing plan or special tariff vouchers (STVs) purchased by the subscriber.
Gopinath P, one of the readers of Moneylife said, "If you have purchased an Rs44 STV by virtue of which your outgoing call are to be charged at 0.6 paisa per second (or 36 paisa per minute) for 30 days. However as per the new diktat from BSNL, you will now be charged 1.5 paisa per sec (or 90 paisa per minute) on 31st December and 1st January. A 2.5 times hike for just two days and BSNL also gets to pocket the money paid for the STV."
The idea of declaring blackout days came into existence following unprecedented surge in traffic volumes, especially for SMS. In order to avoid network jams, mobile operators decided to charge more for sending SMS on these special days.
However, with more and more people using social networking apps, like Whatsapp, WeChat and Skype to send and receive messages and greetings, mobile operators are unable to earn money on these blackout days. Something like this may have prompted BSNL to come out with the idea of increasing call charges on 31st December and 1st January.
"On the lighter side however there is a silver lining, government companies can think out of the box indeed...Hats off to BSNL for this 'topi pahnanewala' scheme," Mr Gopinath concluded.
The upcoming general elections sees Credit Suisse optimistic on Indian cyclicals and believes that there are factors that support for an upward movement in HCL Technologies, Wipro, Tata Motors, Reliance, Sesa Sterlite and Cairn Energy
Credit Suisse is overweight on India, with the general election acting as a catalyst according to their latest research report. It stated: “Our overweight call on India is based on the general election acting as a catalyst for a potential inflection point on return on equity (ROE).” It feels that the three consecutive upward revisions in EPS provide support to their bullish call. Credit Suisse prefers cyclicals over defensives. Their top stock picks are HCL Technology, Wipro, Tata Motors, Reliance Industries, Sesa Sterlite and Cairn Energy.
It is bullish on cyclicals, given that the relative valuation gap between cyclicals and defensive is large enough to pick the former. The report stated: “We continue to favour cyclicals over defensives, particularly in India. The cyclicals defensive price-to-book gap in India at -4.2X is the biggest in the region.” The chart below shows the relative valuation gap.
Moreover, it feels that global factors, especially the United States economy will tip the scales in favour of cyclicals over defensives. The report said, “While Indian cyclicals have outperformed defensives by 22% since the lows on 30 April2 013, we believe valuations, EPS revisions and recent rises in US bond yields suggest further cyclicals outperformance.” The chart below shows the potential market bottoming associated with three consecutive “upwards” revisions in EPS.
According to Credit Suisse, it uses the MCSI’s broader definition of cyclicals which includes technology, energy, materials, consumer cyclicals and industrials; defensives include consumer staples, utilities and telecom.
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RBI allowed Karur Vysya Bank to increase FII investment limit to 40 % from 35%
Private sector lender Karur Vyasa Bank (KVB) has been allowed by the Reserve Bank of India’s (RBI) to increase investment limit to 40% from 35% for foreign institutional investors (FIIs).
However RBI saidt, equity shares held by single FII should not exceed 10% of the paid-up equity capital of the bank and the investments made should be within the stipulated ceilings.
RBI’s approval to Karur Vysya Bank for raising FIIs investment limit to 40% is subject to the condition that aggregate foreign investment in the bank should not exceed the composite sectoral cap of 49% (49% under automatic route and beyond 49% to 74% under government route).
The present policy of Department of Banking Operations and Development (DBOD) requires RBI’s acknowledgement for acquisition or transfer of shares of 5% and more of a private sector bank by FIIs.
As on September 2013, FII holding in Karur Vysya Bank stood at 24.89%, Domestic Institutional Investor holdings at 13.30%, public holding at 58.75% and Promoter holdings stood at 3.06%.
Karur Vysya Bank closed Friday 1.4% higher at Rs349 on the BSE while the 30-share Sensex ended marginally down at 20,851.