For FY14, Titan net profit remained flat at Rs741.14 crore on slower demand
Titan Co Ltd (Titan) earlier know as Titan Industries, posted a flat full year net profit on subdued demand in challenging markets.
For the 12 month to end-March, the Tata group unit said its net profit increased marginally (2.20%) to Rs741.14 crore from Rs725.18 crore even as its total revenues, including sales, grew 7.94% to Rs10,915.79 crore from Rs10,112.67 crore, a year ago period.
“This performance came in the backdrop of a challenging economic environment. The strength of company’s brands contributed to sales growth across all retail formats of watches, jewellery and eye wear,” the company said in a regulatory filing.
Bhaskar Bhat, managing director of Titan, said, “The year also witnessed other adverse factors like the regulatory changes that impacted our jewellery business. The Company will however continue to invest in strategic initiatives taking into account our long term and sustainable growth plans.”
The watches business of the Titan recorded an income of Rs1,790.80 crore, a growth of 6.9%. The income from Jewellery segment grew by 6.5% to Rs8,632.03 crore. The income from other segments comprising of Precision Engineering, a B2B Business, the Eye wear business and accessories grew by 20.7% to Rs499.79 crore.
During FY14, Titan added 125 stores of Watches, Jewellery and Eyewear businesses. As on 31st March 2014, the Titan had 1,078 stores, with over 1.5 million sq.ft of retail space delivering a retail turnover in excess of Rs10,900 crore.
During the quarter to end-March, Titan said, its net profit grew 11.61% to Rs206.44 crore from Rs184.97 crore while its total revenues, including sales, grew 7.28% to Rs2,803.38 crore from Rs2,613.24 crore, same period a year ago.
Titan declared a dividend of Rs2.10 per share.
Titan closed Wednesday marginally up at Rs272.25 on the BSE, while the S&P BSE Sensex ended the day marginally down at 22,323.
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RBI has already prohibited banks from charging penalty for prepayment of home loans and now the same has been extended to individual term loans
The Reserve Bank of India (RBI), on Wednesday said that banks should allow customers to prepay floating rate term loans without any penalty.
“It is advised that banks will not be permitted to charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect,” the RBI said in a statement.
The central bank in its first bi-monthly policy on 1 April 2014 had said that banks should also not take undue advantage of customer difficulty or inattention. "In the interest of their consumers, banks should consider allowing their borrowers the possibility of prepaying floating rate term loans without any penalty," RBI had said.
RBI also said that in the interest of their customers, banks should consider allowing their borrowers the possibility of prepaying floating rate term loans without any penalty. RBI has already prohibited charging of penalty for prepayment of housing loans of individual customers, and wanted to extend the same benefit to all type of floating rate term loans, which will help small and medium enterprises as well.
Customers tend to pre-pay their term loans when they find that interest rates have risen. Some customers foreclose their loans with existing banks by switching to banks who offer loans at lower rates.
Earlier in June 2012, the RBI had asked commercial banks to stop levying penalty on pre- payment of home loans on floating interest rates. "Removal of foreclosure charges or pre-payment penalty on home loans will lead to reduction in the discrimination between existing and new borrowers and competition among banks will result in finer pricing of the floating rate home loans," the central bank had said.
RBI in its monetary policy for 2012-13 had proposed that banks should not be permitted to levy such charges with a view to bring uniformity across the banking system in the home loan segment.
The committee on Customer Services in Banks under M Damodaran had expressed that foreclosure of charges levied by banks on prepayment of home loans was resented upon by home loan borrowers and the banks were hesitant in passing on the benefit of lower interest rates to existing borrowers in a falling interest rate scenario.
Minors above 10 years can now open and operate independently savings bank account and use other facilities like ATM, cheque books and internet banking
The Reserve Bank of India (RBI) on Tuesday issued guidelines allowing minors above 10 years to operate bank accounts independently in order to promote financial inclusion and bring uniformity in opening of such accounts in banks.
Earlier the central bank had permitted minors to open fixed and savings deposit bank account with mothers as guardian.
Modifying its guidelines, the RBI said all minors can now open a savings, fixed and recurring bank deposit account through either his or her natural guardian or legally appointed guardian.
The minors who have attained 10 years of age, would be allowed to open and operate savings bank accounts independently.
"Banks may, however, keeping in view their risk management systems, fix limits in terms of age and amount up to which minors may be allowed to operate the deposit accounts independently," the RBI said.
Further, the banks can also decide on the minimum documents which are required for opening of accounts by minors.
"Banks are free to offer additional banking facilities like Internet banking, ATM/debit card and cheque book facility, subject to the safeguards that minor accounts are not allowed to be overdrawn and that these always remain in credit," the RBI said.
On attaining majority, the minor would be required to confirm the balance in his or her account.
RBI said, if the account was operated by the natural/legal guardian, fresh operating instructions and specimen signature of the minor should be obtained and kept on record for all operational purposes.