Bank of India hikes deposit rates by 75 basis points; IDBI Bank increases interest rates by 50 basis points; Dunlop India open offer soon; Tata DOCOMO to offer free 3G service for 7 days; Uninor launches Diwali offer in Karnataka
Bank of India hikes deposit rates by 75 basis points
Bank of India has raised its fixed deposit rates by up to 75 basis points for various maturities. The revised rates have come into effect from 1st November.
The Bank has revised rates ahead of the Reserve Bank of India second quarter policy review.
After revision, the interest rate for 91-179 days, will be higher by 75 basis points at 6.25% for all deposits that are less than Rs1 crore. While, for deposits of 180-269 days the interest rate has been hiked by 50 basis points to 6.50%.
For deposits between 270-364 days, the rate has been hiked by 75 basis points to 6.75% and for all deposits for one year to less than two years, the rates has been raised by 50 basis points to 7.5%.
IDBI Bank increases interest rates by 50 basis points
IDBI Bank has increased its benchmark prime lending rate and deposit rate by 50 basis points, after the Reserve Bank of India raised its repo and reverse repo rates by 25 basis point each. The Bank raised its base rate by 50 basis points to 8.5% in October and the current hike will lift it to 9%.
Dunlop India open offer soon
Dunlop India Ltd will soon come out with an open offer to meet the Securities and Exchange Board India conditions of takeover in 2005. The open offer will be close to Rs44 a share (Rs29.63 plus interest).
The company has already applied to the regulator and expects to open in the next three to four weeks. However, as the share listed on the Bombay Stock Exchange and is trading at Rs84, it will not attract any interest from shareholders to offload shares.
Tata DOCOMO to offer free 3G service for 7 days
Tata DOCOMO will launch its 3G services on 5th November and will offer a free trail of 3G services for the first seven days (till 11th November) to its subscriber in all the nine circles where it has the 3G license.
The commercial 3G services would be available from 5th November in Karnataka, Kerala, Madhya Pradesh-Chhattisgarh, Rajasthan, Gujarat, Uttar Pradesh (West), Punjab, Haryana and Maharashtra telecom circles.
Uninor launches Diwali offer in Karnataka
Uninor has launched its special Diwali offer-RC 35 plan. Through this plan, Uninor subscribers can convey their wishes to their family and friends across any service provider in Karnataka.
Offering 100 local minutes free to any network in Karnataka, the RC 35 promises to be extremely popular this season. The plan valid for three days will charge customers as per their current plan post consumption of the 100 free minutes.
New Delhi: Amid fears that further liquidity injection by the US central bank would add to capital inflows, a key economic adviser today said India has large capacity to handle these funds, but should keep all its options open in case the situation turns alarming, reports PTI.
Chief economic adviser Kaushik Basu told reporters here that currently capital controls should not be stepped up as record fund flows by foreign institutional investors (FIIs) have not become a matter of concern as of now.
On the sidelines of United Nation's Development Programme event here, he also attributed the surge in capital inflows to confidence that foreign investors repose in Indian economy.
"India already has a bunch of capital controls, so I am not personally in favour of stepping up on those and as one of the deputy governors of the Reserve Bank of India (RBI) has pointed out that the inflows that we are getting into the country are large but still not at a level that we are worried about," Mr Basu said.
"Instability being caused by inflows of foreign exchange through the FII route that we have got from the 1st April to today is bigger than ever in India's history, but India is a much stronger economy today and so we should be able to take it," he added.
The remarks assume importance in the wake of US Federal Reserve's move to purchase a further $600 billion of government bonds that will pump liquidity into the system.
Though the Fed plans to buy these securities by second quarter of 2011, the announcement itself leads to some reaction.
"While it is true that some of the money coming into India is because of the loose monetary policy being followed in the United States and some other industrialised nations, a part of the money is also coming in because of confidence in India's ability to grow and make use of the money," Mr Basu said.
He said that India has to keep all options on the table to handle the flows in case there is a surge of volatility.
"But, right now I would not use any of those," he added.
FIIs have poured $26.46 billion into equity and $9 billion in debt markets in India so far this year.
India has some control, particularly in debt markets.
FIIs can invest up to $20 billion in corporate bonds and $10 billion in government bonds at any point of time.
Besides, the RBI can intervene in forex market to stem the rise in the value of rupee. The rupee has appreciated over 5% against dollar since September.
However, RBI governor D Subbarao on Tuesday had ruled out any imminent intervention in the foreign exchange market, saying capital inflows are still not lumpy and volatile.
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