RBI governor meets FM ahead of credit policy

It is widely believed that the central bank, in its annual credit policy, might increase short term lending (repo) and borrowing (reverse repo) rates by around 25 basis points

New Delhi: Amid concerns over high inflation and the possibility of a hike in key policy rates, Reserve Bank of India (RBI) governor D Subbarao today called on finance minister Pranab Mukherjee to discuss the state of economy ahead of the apex bank’s monetary policy next week.

"As a standard practice I had come to review the macro economic situation with the finance minister and senior officers ahead of the policy review,” Mr Subbarao told reporters after meeting Mr Mukherjee.

The RBI is scheduled to announce its annual credit policy on 3rd May in Mumbai during which it is widely believed that the central bank might increase short term lending (repo) and borrowing (reverse repo) rates by around 25 basis points.

The apex bank has increased these rates eight times since March 2010 to tame price rise.

The central bank faces a challenging task of managing the inflationary pressure at a time when the industrial growth has started showing signs of lagging.

On whether he anticipated high inflation to impact economic growth, Mr Subbarao said, “We will answer these questions on 3rd May.”

The headline inflation for March at 9% breached the RBI’s projection of 8%. This is much higher than the comfort zone of 5%-6%.

The government expects India’s gross domestic product (GDP) to expand by 9% in the current fiscal.

Factory output, as measured by the Index of Industrial Production (IIP) slowed to 3.6% in February 2011, compared to 15.1% expansion in the year-ago period.

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HC initiates contempt proceeding against AI pilots

The state-owned airline has incurred an approximate loss of Rs26.5 crore in the past three days due to the pilots’ strike which forced it to cancel at least 280 flights

New Delhi: The Delhi High Court today decided to initiate contempt proceedings against striking Air India (AI) pilots belonging to Indian Commercial Pilots Association (ICPA) for defying its order to resume work, saying “it amounts to disrespect of its orders.”

The contempt proceedings were taken up suo motu by justice Geeta Mittal based on media reports that despite its order the pilots have not called off their strike and passengers are hard pressed, reports PTI.

“It is clearly evident that the conduct of pilots is brazen and wilful and smacks of sheer arrogance,” the court said, adding, “There is complete lack of respect for the court orders.”

The bench referred the matter to the chief justice of the high court for further action by an appropriate division bench.

While passing the order, the judge said, “This conduct of the pilots is covered in the definition of the criminal contempt of court” and “such persons are liable to face appropriate proceedings under the law.”

The high court had yesterday castigated striking Air India pilots for defying its order to immediately call off the agitation and had also issued notices to their union’s office bearers seeking replies as to why contempt of court proceedings should not be initiated against them.

The court had warned that property of their trade union ICPA will be attached if they did not return to work immediately.

Justice Mittal had issued notices to president AS Bhinder, general secretary Rishabh Kapoor and regional secretary Amitesh Ahuja of ICPA and asked them to be present before her on next date of hearing on Monday to answer the contempt charge.

Meanwhile, the state-owned airline has incurred an approximate loss of Rs26.5 crore in the past three days due to the pilots’ strike which forced it to cancel at least 280 flights.

Air India, which normally operates 320 flights on a daily basis, cancelled 57 flights on April 27, 96 yesterday and at least 126 today, an official said.

The number of cancellations was more today because of the management’s decision to refuse fresh bookings for the next five days, he said.

The estimated losses on these three days were Rs4.5 crore, Rs10 crore and Rs12 crore respectively, he added.

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COMMENTS

Shadi Katyal

6 years ago

What is new about Air India. Ever since it became PSU the employees numbers multiplied and unions became more powerful than courts or even GOI. There are more number of employees per aircraft than many small nations have total. This was one way of providing jobs but now the monster wants more money.
It is time to shut it down for good and sell the assets to private company.
we could learn from Singapore Airline which is a PSU but run by private company but rot is set so much that nothing can save Air india. Whether we let the pilots dictate and not observe any court orders or machine mechanics and other many unions will be next.
Mr. Praful Patel molly coddle with unions and encouraged this kind of resistance and I presume it will same now. This is the most opportune time to shut it down as nation cannot bleed of Crores of Rupees which could be utilized for even potable water.and schools.
Let Maharaja become bankrupt as is the service of the airline. Has GOI and Civil aviation not thought and analyzed that why 80% of foreign travel by Indians is in foreign airlines.
DONOT THROW THE GOOD MONEY IN NEVER ENDING HOLE.CLOSE AND FIRE ALL OF THEM AND SAVE THE HARD EARNED MONEY

Anup Bagchi takes charge as ICICI Securities’ MD & CEO

Anup Bagchi takes charge as the MD and CEO of ICICI Securities effective 1 May 2011

Mr Bagchi will spearhead the company’s initiatives in corporate finance which includes Equity Capital Markets Advisory Services, and Institutional Equities; Retail Equities which includes ICICIdirect.com, one of the largest players in the internet brokerage space and Financial.

Prior to his appointment, Mr Bagchi was the executive director at ICICI Securities. He has been responsible for the development and business growth of the retail broking, distribution of retail financial products, and wealth management services. Mr Bagchi pioneered seamless online broking in India through ICICIdirect.com. ICICIdirect.com is the leader in the online share trading space with over 2 million customers. Today, ICICI Securities has the largest reach to the retail segment through its two avant-garde brands – ICICIdirect.com and ICICIdirect. During his tenure of 17 years with ICICI Bank, Mr. Bagchi has held many key positions in field of Retail Banking, Corporate Banking and Treasury.

Mr Bagchi holds a Management degree in Finance from IIM, Bangalore along with an engineering degree from IIT, Kanpur.

Ms Madhabi Puri-Buch, presently managing director & CEO, ICICI Securities will move to ICICI Bank and proceed on a sabbatical for personal reasons, to join her husband who is based overseas.

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