Eminent banker and Satyam board member Deepak Parekh on Wednesday said that the execution of strategies remains a challenge for Indian companies in the current market condition.
Satyam has initiated discussion with a host of banks and institutional investors to get funds to keep its business afloat and has pledged some of its receivables to secure funding, Parekh told reporters in Mumbai on Wednesday. Satyam's new board will meet on Thursday and the day after to discuss issues including appointments of top executives and ways to raise funds, Parekh said.
The government today expanded the three-member Satyam board to six to include S Balakrishnan of Life Insurance Corporation, Tarun Das, chief mentor of the Confederation of Indian Industry and T N Manoharan, former president of the Institute of Chartered Accountants of India.
Swinging into action on the very first day of taking charge of the scam-tainted Satyam, its three-member board on Monday announced that top management would be changed and every effort made to address the prime concern of liquidity, including asking main clients to make advance payments.
The government does not see any conflict of interest in HDFC chairman Deepak Parekh and former Nasscom President Kiran Karnik, who are directors on the board of Satyam's competitors, being on the troubled company's board.
A top company official said, "We are still waiting to receive any communication from the new board. we might make a presentation to the new board."
"Cost of funds is still high, so once it comes down, we will reduce interest rates," HDFC chairman Deepak Parekh said. Parekh's comments came two days after Finance Minister P Chidambaram said 'competition from PSU banks will force lenders in private sector to cut interest rates sooner than later'.
Called Default Option, it is a life-cycle fund under which the amount of money invested in equity would be more in the initial stages while in the later stages, more money would be invested in debt instruments.
The board -- which includes, Kiran Karnik, T N Manoharan, former chief, ICAI, and HDFC chief Deepak Parekh, appeared relieved after a marathon run of selecting a bidder for the scam-tainted firm.
State Bank of India's decision to freeze home loan interest rates at 8 per cent for a year has stirred a controversy with the country's largest mortgage player HDFC on Tuesday terming the move as a 'gimmick'. SBI executives retorted by saying that the package was not a 'teaser rate', as HDFC chairman Deepak Parekh described the move.
President A P J Abdul Kalam presented the awards at a function at the Ashoka Hall of the Rashtrapati Bhavan.\n\n
Sources said, though the board did not meet officially on Monday, the members were engaged with some of the prospective lenders to overcome the financial problems.
Housing Development Finance Corporation (HDFC) Chairman Deepak Parekh on Tuesday said that interest rates may rise owing to higher inflation, but lending rates are unlikely to change in the next one month.
The board, whose size was doubled with the induction of three members on Thursday, is likely to elect a new chairman to steer the company out of the financial mess that its founder Ramalinga Raju led it into.
Besides Deepak Parekh, who heads financial institution HDFC, other committee members include key representatives of major banks and infrastructure finance institutions.
"Land is the riskiest form of speculative real estate, which is why there are huge swings in land value," said Deepak Parekh, Chairman, HDFC in a key note address at a function organised by the Federation of Indian Chambers and Industry in Mumbai on Wednesday.
A civilised society depends on having the greatest possible number of people who have a stake in society. Being a homeowner gives one a secure and direct stake in society; so that is the goal we need to work towards.
With inflation moderating slightly in recent weeks, HDFC chairman, Deepak Parekh, hoped that there would be no further interest rate hikes even though there was a feeling in the market that the peaking interest rates could go up by another 0.5 per cent.
The board had earlier said that the bidder will be announced on April 9.
HDFC chairman Deepak Parekh on Monday said that he expected property prices to come down by 20 per cent in the next six months even as there is an upward pressure on interest rates.
The country's largest home loan player HDFC on Wednesday said that it may have to raise lending rates further if the Reserve Bank of India (RBI) increases key policy rates in the forthcoming monetary policy review on July 29. HDFC has been arguing that the effective borrowing cost is a little over 5 per cent if the tax benefits are included.
Most bankers on Monday ruled out the possibility of lending rates softening following RBI's move to suck out excess liquidity, but housing finance leader HDFC sees a scope for reduction."There is enough liquidity in the system, softening of lending rate could happen," HDFC chairman Deepak Parekh said. Interest rates can come down despite CRR (percentage of total deposits that banks keep with RBI) hike, he said.
As many as 40 applicants have thrown their hats in the ring for the top job of CEO at scam-tainted Satyam, whose board meeting is scheduled for Thursday to consider the appointment.
The banking industry is hoping for more rate cuts by the Reserve Bank, which in turn, will help soften both deposit and lending rates, a top financial industry expert said.
Setting apart something like 10 per cent of GDP every year for investment in infrastructure is going to be a new experience for this country -- and long overdue.
Country's leading housing finance company HDFC chairman Deepak Parekh said on Friday that he expects interest rates to soften by 0.25-0.50 per cent if there is no hike in the cash reserve ratio.
Bid evaluation committee wants the combine's 'amicable extrication' from the project.
The change comes into effect from Monday, a HDFC spokesperson told PTI in New Delhi. This reduction will be on fresh loans and applicable to all disbursements up to October 31.
Noted banker Deepak Parekh has favoured a lower revenue share by cellular operators in order to allow full mobility to the wireless in local loop operators.
Housing Development Finance Corporation, a key home loan lender, on Monday said it is likely to increase interest rates by up to 100 basis points (bps) - 1% later this week.
A key player in the home loan market, HDFC on Thursday said it would hike housing loan rates by another 0.50 per cent this month-end or early March.
Housing Development Finance Corporation Ltd has sold its 50 per cent stake in Intelenet Global Services Ltd, a business process outsourcing company, to Barclays Bank Plc for Rs 164 crore (Rs 1.64 billion).
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances