Former union government secretary EAS Sarma has written a letter to Reserve Bank of India and Department of Economic Affairs, which drew attention to Moneylife article by Ramesh Arunachalam on areas of conflict of interest in the way RBI is processing new private banking licences
Considering the importance of the financial sector, in general, and the crucial role of the RBI (Reserve Bank of India) in particular, Mr EAS Sarma, former union government secretary believes that MoF (Ministry of Finance) and RBI should jointly address the issues raised by Mr Ramesh Arunachalam in his article in Moneylife to ensure that the process of selection of applicants for new banking licenses remains credible in public perception.
You may read Arunachalam’s article here:
Mr Sarma has written a letter to RBI and Department of Economic Affairs (DEA), which drew attention to the Moneylife article by Ramesh Arunachalam on areas of conflict of interest that arise in the way RBI allows new private banks into the sector.
Mr Arunachalam's concerns, according to Mr Sarma, may be summarised as follows.
When the government eloquently argues for all kinds of “reforms”, Sarma wonders why the changes that he has referred to in his letter, which are well within the reach of the government, are never considered! Other issues raised by Sarma in his communication to DEA and RBI include:
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Owing to the volatility of the rupee and the global trend of high crude oil and base oil prices, Castrol India reports a sluggish growth in net profit and predicts a negative impact on short term growth and margins
Castrol India, India’s second largest manufacture of automotive and industrial lubricants, delivered a decent profit growth for the September quarter, with profit after tax growing by 22% at Rs104.5 crore as against Rs85.7 crore during the same period in the previous year. The improved result was on account of higher sales realisation, lower base oil price and prudent cost management.
The net income stood at Rs2370.1 crore for the quarter ending on 30 September 2013 compared to the Rs2360 crore last quarter ending at 30 September 2012.
Commenting on the third quarter results, Ravi Kirpalani, managing director, Castrol India Limited, said “Despite the unfavourable economic scenario, including significant rupee depreciation, the third quarter results show improved gross margin on account of higher sales realisation, lower base oil prices and effective cost management strategy.”
“Continued economic headwinds, rupee volatility and high crude and base oil prices are likely to impact the growth and margins in the short term”, said the company in a press release. The company remained positive about future growth opportunities given its strong brand, strong relationships with key stakeholders, and commitment of its employees.
During the quarter, the company re-launched Castrol Power1, a premium two wheeler engine oil in collaboration with its key partner, Tata Motors.
The company share price has gone up by 0.24% at Rs 308.30 while the BSE stock exchange stood at 20,570.18.