Vadodara: Public sector bank Central Bank of India is all set to start its first financial inclusion initiative in Gujarat's Khanpur village tomorrow, reports PTI quoting a top bank official.
Financial inclusion consists of providing banking services at affordable costs to weaker sections of the society or the unbanked segment, which does not have any access to formal banking system.
"Central Bank is perhaps first in the state of Gujarat to do so after the Reserve Bank of India (RBI) and the government of India made it mandatory for public sector banks and private banks to implement financial inclusion plans," U Mohapatra general manager of the Central Bank of India-Gujarat state told PTI.
Executive director of the bank R K Dubey will inaugurate the banks' first financial initiative at Khanpur village in the presence of other senior officials of the RBI and the National Bank for Agriculture and Rural Development (NABARD).
At present, financial inclusion experts believe that an estimated 60% of the Indian population does not have an access to formal banking facilities.
During his first ever visit to the city, Mr Dubey will meet leading industrialists, businessmen, corporate world leaders and head of government bodies for discussing the future plans and strategies of the bank in meeting future challenges, Mr Mohapatra added.
BS TransComm which found no takers at Rs260, got listed today and ended the day at Rs381!
Strange games are being played at ease in the Initial Public Offering (IPO) market even as the market regulator and the stock exchanges look on. BS TransComm got listed today. It had failed to receive even one-time subscription initially. The price band was reduced and time extended.
Finally the issue barely managed 1.1 times subscription in the extended period. But even as the Sensex tanked on the day of listing, (down 216 points) the stock was almost up 60%!
Isn't it strange that when there were no buyers at Rs260 (issue price), suddenly there will emerge a host of buyers at Rs370-Rs380? The stock closed today at Rs381 on the BSE. According to a market observer, "This is a classic case of price rigging, circular trading and structural deals." He added, "The real fun starts from tomorrow, when the operators start offloading."
The source points out that the same pattern was seen in Bedmutha, Aster Silicate, Sea TV and Tirupati Inks. "All these companies had a similar debut and now there are no takers at lower levels and absolutely no volumes."
Today, two other companies got listed, both at a significant premium, braving the falling market. Prestige Estates, the Bangalore-based builder, had issued shares at Rs183 and ended the day at Rs192.55, up 5.2% even though it was barely oversubscribed by 2.26 times. Gyscoal Alloys, which issued shares at Rs71, ended at Rs81.55, up 15.86%. Gyscoal and BS TransComm both got a grading of 2/5 while Prestige got a grading of 3/5.
The Indian market ended with a cut of over a percent, tracking lacklustre global cues. Choppy trade along with broadbased selling sent the indices on a southward journey, but the ending was a tad above the crucial levels and above the day's lows.
The market opened weak on unsupportive global cues. Selling in key heavyweights and nervousness ahead of the futures and options (F&O) expiry, kept the market in the negative terrain. The losses increased as the day progressed, plunging the indices deeper into the red following a dismal opening at the European bourses. However, the indices settled a little above the psychological levels.
The Sensex ended at 20,005, down 216.02 points (1.07%), marginally above the 20,000-mark. The index touched a high of 20,220 and a low of 19,923, mid-session. The Nifty declined 75 points (1.23%) to end at 6,007, slightly above the crucial level of 6,000. The benchmark touched a high of 6,076 and a low of 5,987 in trade today.
The overall market breadth was dismal. The Sensex closed with 22 losers, seven advancing stocks and one returning unchanged. The Nifty ended with 41 in the declining list against nine stocks in the green. Among the broader indices, the BSE Mid-cap index lost 0.29% while the BSE Small-cap index fell 0.31%.
The Sensex gainers included Reliance Communications (RCom) (up 3.66%), Mahindra & Mahindra (M&M) (1.63%) and Tata Steel (up 1.48%). The losers were NTPC (down 3.14%), HDFC (down 2.59%) and Maruti Suzuki (down 2.44%).
The sectoral space had only two gainers - BSE Consumer Durables (up 0.44%) and BSE Metal (up 0.28%). The losers were led by BSE Realty (down 2.07%), BSE Fast Moving Consumer Goods (FMCG) (down 1.61%), BSE Bankex (down 1.19%), BSE TECk and BSE IT (down 1.04% each).
Asian markets ended lower on concerns that the US Federal Reserve's quantitative easing, to be announced next week, might not be as large as thought. The worries led to a rebound in the dollar, impacting commodity stocks in the region.
The Shanghai Composite tanked 1.46%, Hang Seng tumbled 1.85%, Jakarta Composite was down 0.81%, Straits Times shed 1.21%, Seoul Composite was down 0.51% and Taiwan Weighted sank 0.63%. On the other hand, KLSE Composite gained 0.14% and Nikkei 225 added 0.10% in trade today.
The government is not considering freeing diesel prices yet, as the move will lead to rise in retail rates that will push up the already high inflation rate, oil secretary S Sundareshan said today.
"Diesel price deregulation will mean an increase in prices, which is not fair (under present circumstances)," he said at the Economic Editors Conference here.
The US markets ended flat on Tuesday as the dollar regained its strength on concerns about the quantum of stimulus that the Federal Reserve will announce in its two-day meeting next week. Investors ignored the higher-than-expected consumer confidence index but pondered over weak earnings reports. The Federal Housing Finance Agency said in a separate report that home prices climbed 0.4% in August, beating analysts' forecasts.
The Dow rose 5.41 points (0.05%) to 11,169. The S&P 500 added 0.02 points to 1,185. The Nasdaq surged 6.44 points (0.26%) to 2,497.
Foreign institutional investors were net buyers of Rs481 crore in the equities segment on Tuesday. Domestic institutional investors offloaded stocks worth Rs708 crore on the same day.
State-owned exploration and production (E&P) major Oil and Natural Gas Corporation (ONGC) (down 1.80%) today said it has appointed two international auditors to certify its oil and gas reserves, ahead of a planned share sale early next year. The government plans to sell 5% of its shares in the follow-on public offer (FPO) in March 2011.
"We have appointed D&M (DeGolyer and MacNaughton) and Gaffney, Cline and Associates as reserve auditors to value our reserves," ONGC chairman and managing director RS Sharma told reporters in New Delhi.
Biotechnology major Biocon (down 0.29%) has announced a strategic foreign direct investment (FDI) in Malaysia with Malaysian Biotechnology Corporation Sdn Bhd (BiotechCorp). The investment will be made towards establishing a bio-manufacturing and R&D facility in Bio-Xcell, a custom-built biotechnology park and ecosystem in Malaysia.
The project would focus on research, development and production of high-end biosimilars and other biopharmaceuticals products.
Tata Steel (up 1.48%) has said that its Rs 15,000-crore new production line at its Jamshedpur plant will go on stream by July-September 2011, increasing the total annual capacity to 10 million tonnes.
The global steel major is enhancing the production capacity from 6.8 MTPA to 10 MTPA, with an investment of Rs 15,000 crore.
The expansion is part of the steel major's plans to take its annual capacity to 16MT by 2014 at an investment of around Rs40,000 crore. The projects will be funded by a mix of debt and internal accruals.