Tata Sons chairman Ratan Tata celebrated the 172nd birth anniversary of Jamsetji Nusserwanji Tata at the Tata Steel factory in Jamshedpur
The 172nd birth anniversary of Jamsetji Nusserwanji Tata was celebrated at the Tata Steel factory in Jamshedpur, with Tata Sons chairman Ratan N Tata participating in the celebrations organised to honour the multi-billion dollar group's founder.
Tata, along with a host of dignitaries, including Tata Steel managing director HM Nerurkar, former managing directors B Muthuraman and JJ Irani and other officials, paid floral tribute to the founder.
A two-minute silence was observed in remembrance of the 1989 fire incident at the plant, in which several persons watching the Founder's Day celebrations lost their lives.
Tata spent about two hours in the works, watching the tableaux taken out by various divisions of Tata Steel, its associated companies and social organisations.
Later, the chairman interacted with employees of the company, as well as citizens of the 'Steel City'.
On Thursday, Tata Steel ended 1.72% down at Rs623.40 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.23% at 18,489.76.
ICICI Bank expects over 20% growth in loans in the next fiscal against 18% in 2010-11
Private sector lender ICICI Bank Ltd said it expects over 20% growth in loans in the next fiscal against 18% in 2010-11.
"...it (credit growth) would be upward of 20%," ICICI Bank managing director Chanda Kochhar said on the sidelines of an interactive session organised by industry body CII. She also said that the overall credit offtake in the country is likely to be over 20% in the next financial year.
"We are seeing a strong credit growth which is universal across the segment so it would be upward of 20%," she said. Credit offtake from public and private sector banks in the country grew by over 24% to Rs38.98 lakh crore for the one-year period ended 11 February 2011, as against Rs31.43 lakh crore in the corresponding period a year ago.
The Reserve Bank of India (RBI), in its annual monetary policy at the beginning of the current fiscal, had estimated credit offtake to grow by 20% in 2010-11. Loan offtake has been higher this fiscal on account of large borrowings by telecom firms to pay for 3G spectrum licences.
Participating in the interactive session, also attended by Lael Brainard, Under Secretary in US Department of Treasury, Kochhar said India and the US should increase bilateral economic cooperation.
Sharing his wish list from the US, she said, "find ways of working together...because even in the given set of policies other countries have more investments in infrastructure (in India) as compared to the US."
She also asked the US authorities to allow more Indian banks in America so that they could play "larger role" there. "Ability of Indian banks to grow in the US is very strong," she said. Brainard said the US is an open market and welcomes participation of foreign financial institutions. Talking about capital cushion to be raised for financial institutions in the US, the visiting official said her country is very supportive of BASEL III capital requirements. "Banks will get thicker capital cushion...we are in track to implement BASEL III," she said.
On Thursday, ICICI Bank ended 0.81% down at Rs1,017.60 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.23% at 18,489.76.
The FM has generously allowed domestic fund companies to solicit foreign money. But SEBI bans mutual funds from offering entry loads to distributors. Will foreign distributors touch Indian schemes?
The finance minister has allowed Indian mutual funds to take a big leap. For 20 years after the Indian markets were opened up to foreign investors, only institutional investors were allowed to invest in India. In this year's Budget speech, the finance minister has allowed the mutual fund industry to solicit foreign retail investors' money. The question is, who will sell the schemes to foreign investors and why?
Remember, in August 2009, the Securities and Exchange Board of India (SEBI) decreed that mutual funds will not pay entry loads to distributors to sell mutual funds. Distributors would enjoy only the trail commission and that too if the customer stays with them. This ban on entry loads was revolutionary. Hardly any country in the world has it. The short-term impact has been disastrous.
Upfront commission or entry load formed an important portion of distributors' revenue. With a ban on upfront commission, distributors have shifted to selling other products like Unit-linked Insurance Plans (ULIPs) and company fixed deposits (FDs). ULIPs are no better than funds unless they are held for a longer period and corporate fixed deposits are unsecured. But the commissions on ULIPs and FDs are extremely attractive, which is why distributors are pushing them.
The question is-will foreign distributors sell Indian mutual funds only for trail commissions? After all, entry loads are a fact of life around the world. In fact, they are quite steep in the US.
Says Motley Fool (a website that provides investing information) , "The day that you buy the mutual fund, you pay a sales fee, usually around 5%, and somewhere between 3% and 8.5%." The question is, if distributors normally charge loads of 3%-8.5%, will they sell Indian funds for free?
Moneylife questioned several heads of fund companies on this issue. All of them were categorical that without sales load or entry load, there was no question of being able to sell Indian schemes-not even through the own network of parent companies (like Templeton and Fidelity).
Ever since the ban on entry load by the market regulator from 1 August 2009, the mutual fund industry has seen a massive outflow of investments. This was all the more galling for the fund industry, because mutual funds normally benefit from inflow of funds when the market is rising. Between March 2009 and July 2009, when the Sensex was up 88%, the fund industry saw an inflow of Rs7,429 crore. For over a year after that, fund companies suffered huge outflows.
Only in the last two months, December 2010 and January 2011, equity mutual funds saw a net inflow of Rs887 and Rs881 crore respectively.