With a sharp dip in property prices, leading banks, including State Bank of India, are reassessing the value of properties against which loans have been granted.Sources familiar with the developments said that banks are worried that the recent fall could impact their risk valuation, if asset prices continue to fall.Banks are now worried that if rates fall further buyers may lose interest in the property, especially if they are not living in it.
Data from Value Research, a Delhi-based fund tracking firm, show that the category average returns from equity-diversified funds have been 14.5 per cent a year over this period. Banking funds, which invest in banking and other financial sector companies, have given returns of 23.66 per cent.
The category average returns from equity-diversified funds has been 14.5 per cent a year over this period. Banking funds, which invest in banking and other financial sector companies, have given returns of 23.66 per cent. Other categories that have done well are fast moving consumer goods, tax planning and hybrid (equity-oriented) funds.
Spencer's Retail, the retail arm of RPG Group, says it has seen a 30-40 per cent decline in the rentals in Tier-II and -III cities. In Tier-I and metropolitan cities, the correction is in the range of 15-20 per cent, and a further correction and its impact is likely to come in the next few months.
According to Jagat M Sarkar, head of HR, e-Rev Max, a product company which has its main development centre in Kolkata and presence in 60 countries, "In the given scenario, there will be increased focus on getting quality manpower. Salary hikes too would be hit. Those on the bench and non-performers are jittery too as companies plan on pink slips.
Information technology employees and fresh graduates in Kolkata have started to see salary cuts and employee lay offs.
The proposal to scrap 'indicative portfolios' has arisen because investors have sometimes found deviations of as much as 80 per cent between the indicative and actual portfolios. In some cases, the entire corpus has been invested in a single instrument. Sebi will also consider Amfi's suggestion of a 3 to 6 per cent exit load for FMPs, a minimum tenure of three months and a faster processing of redemption payouts,
Xerox India Managing Director Andrew Horne said, 'In the current uncertain economic environment, every company is looking at how it can improve operational efficiency... We are amalgamating some roles. In all, 24 roles are disappearing. The decision on timing has been accelerated by pressures caused by the challenging business environment.'
Sebi likely to come out with a policy paper soon.
Though the fund houses have garnered over Rs 1,500 billion from investors, only 8-10 would declare their monthly FMP portfolios till a few months ago. Instead, they gave 'indicative portfolios' and 'indicative returns' to the potential investor. This month, all fund houses declared the portfolios of their schemes because of the half-yearly results. And, to the horror of many investors, the real portfolios were 80-90 per cent different from the 'indicative portfolios.'
In upmarket areas like Bandra and Khar, the going brokerage is as high as 4 per cent
Last week was unprecedented in the history of the Indian mutual fund industry-- the net asset values (NAVs) of nearly a dozen liquid-plus funds fell.
Wills Lifestyle has lined up new marketing strategies and product launches, targeting the womenswear segment in an attempt to double revenues from this burgeoning category. According to Atul Chand, divisional chief executive of Wills Lifestyle, womenswear currently contributes 35-40 per cent to the turnover, which the company intends to take to 50-60 per cent soon.
Fixed maturity plans, which have garnered Rs 102,133 crore (Rs 1021.33 billion) of average assets under management, are facing the prospect of rising defaults on their investments in the real estate and non-banking financial companies. This implies that if there are redemption pressures from their corporate and retail clients, these FMPs would have to raise cash from other resources to meet the demand.
Prospective home buyers, who are looking forward to discounts this festival season, may be in for a rude shock. According to banking sources, most banks are unlikely to offer any discount.
In times like these, when the financial industry is reeling under the pressure of scepticism, communication has become the most important tool for financial services providers. Hence the flood of emails to associates, employees and investors.
In a move to soften the blow of Lehman Brothers' bankruptcy in the Indian stock and asset markets, four banks are set to take over its structured products businesses in India.
Home loan borrowers perpetually worry about the consequences of defaulting. And whether they wish it or not, there could be situations where they are forced to do so. For instance, after the Mumbai bomb blasts on July 11 2006, a large number of affected families found themselves in deep financial trouble leading to difficulties in servicing their home loans
According to a CLSA Asia Pacific Markets report, the e-learning market is projected to grow to around Rs 1,100 crore (Rs 11 billion) by 2012 from 145 crore (Rs 1.45 billion) currently. Besides, online modules cost one-tenth that of a regular course. The worldwide market for online tutoring is estimated to be in the region of Rs 46,800 crore (Rs 486 billion). India now earns around Rs 60 crore per year from online tutoring or 10 per cent of the total market share.
Most car buyers, when applying for a loan, grapple with the question of whether they should opt for a fixed or a floating rate option.
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