Mahindra Satyam reports Rs125 crore loss for 2009-10

Hyderabad: Mahindra Satyam (formerly Satyam Computer Services) today reported a consolidated loss of Rs124.60 crore for the year ended March 2010.

The company's net sales stood at Rs5,481 crore for the same period, Mahindra Satyam said.

This is the first audited financial results from the company after its founder and former chairman of Satyam Computer B Ramalinga Raju admitted to multi-crore accounting fraud in January last year.

Tech Mahindra took over reins of the company in April 2009 after the government-appointed panel cleared sale. It later rebranded fraud-hit company as Mahindra Satyam.

The Company Law Board had given exemption to Mahindra Satyam from publishing results for two financial years FY 2009 and FY 2010.


SBI to review deposit rates soon: Bhatt

New Delhi: State Bank of India (SBI), the country's largest lender, today said it would soon take a call on raising deposit rates, a move in line with the Reserve Bank of India's (RBI) observation that lenders should attract depositors as they have various other options to park money, reports PTI.

"Soon," SBI chairman O P Bhatt said when asked how soon it would take a call on revising deposit rates.

The bank is also supposed to review base rate, the minimum lending rate below which bank cannot offer loans.

Currently, the base rate of the country's largest lender is pegged at 7.5%. In order to bring in more transparency, base rate was introduced as replacement for Benchmark Prime Lending Rate (BPLR) from 1 July 2010.

RBI in its first mid-quarterly review earlier this month had said, "One important consequence of negative real rates is that banks have seen a deceleration of deposit growth, as savers look for higher returns elsewhere. If bank credit is not to become a constraint to growth, real rates need to move in the direction of encouraging bank deposits."

One year fixed deposit earns about 7% while annual inflation for the month of August stood at 8.5%. So, depositors are getting a negative return of 1.5% or more on their fixed deposits.

Deposit growth on annual basis is 14.5% much lower than RBI's projection of 18%.

Last month SBI raised its benchmark lending rate by 50 basis points and deposit rates by up to 150 basis points.

While the increase in the benchmark prime lending rate to 12.25% made existing home, auto and corporate loans from the country's biggest lender dearer, the hike in deposit rates ensured better returns for deposit-holders.

SBI increased the interest rate by 150 basis points (1.5%) to 4% for term deposits of 15-45 days tenor. The deposit rate increase was the maximum in this slab.

For fixed deposits with a tenor between 181 days and less than one year, the new interest rate was 6% against 5.25%, while 555-day fixed deposits invited an interest rate of 7.25%.

The interest rate on term deposits of between three to five years' tenor went go up by 75 basis points to 7.25%, while interest on the 5-8 years' maturity slab increased by 25 bps to 7.50%.


Growth in bank deposits and credit slowed in Q4, 2009-10

Mumbai: The pace of growth in bank deposits and credit showed a substantial decline in the last quarter of 2009-10, as compared to the same quarter of the previous year, reports PTI.

According to the Reserve Bank of India (RBI) data, although deposits of scheduled commercial banks (SCBs) in the country went up by 16.9% to Rs46,01,926 crore during Q4, 2009-10, they expanded at a slower pace than in the year-ago period.

In Q4 2008-09, deposits had increased by 21.9% to reach at Rs39,37,336 crore.

During the last fiscal, the Indian economy had just about started recovering from the impact of the global financial meltdown.

Credit advances, on the other hand, increased 17.1% for the quarter ended 31 March 2010 to Rs33,45,619 crore, from the year-ago period, said RBI's latest 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks'.

The growth rate was down from the 19.3% registered during Q4 of 2008-09, when total credit had stood at Rs28,57,525 crore.

The top hundred centres across India, arranged according to the size of bank credit, accounted for 78% of total bank credit.

"Aggregate deposits of top hundred centres increased by 17.2% in March 2010 over March 2009 compared to a growth of 21% recorded a year ago. Growth rate of gross bank credit of top hundred centres at 16.3% in March 2010 was substantially lower than 20.5% growth recorded in March 2009," the RBI said.

The top hundred centres accounted for Rs31,93,906 crore of total deposits and Rs26,10,275 of total credit as on 31 March 2010.

In March 2009, the comparative figures for deposits and credit for the top hundred centres were Rs27,24,996 crore and Rs22,43,506 crore, respectively.

Among the major centres, Greater Mumbai came at the top with deposits of Rs9,82,498 crore (growth of 22.6%) and banks credit of Rs8,52,311 crore (up 7.3%) in the last quarter of 2009-10.

In second place was Delhi, with total deposits of Rs5,60,675 crore (increase of 9.7%) and bank credit of Rs 4,22,514 (up 20.3%).

Bangalore came third as regards deposits of SCBs during the quarter under review with a growth of 14.5% at Rs1,86,432 crore.

On the credit side, Chennai was at the third slot with a total bank credit of SCBs at Rs1,75,834 crore as on 31 March 2010, up 20.4% from the same period previous year.

Nationalised banks accounted for 51.9% share of the aggregate deposits at Rs23,88,904 crore, while State Bank of India (SBI) and its associates accounted for 22.5% or Rs10,35,859 crore.

As regards gross bank credit, nationalised banks had 52% or Rs17,39,301 crore in the total bank credit. SBI and its associates had a share of 23.1% or Rs7,73,817 crore.


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