Phase II of Paradise City Announced To Launch By HDIL

Recently, Housing Development and Infrastructure Ltd (HDIL) announced to launch its second phase of mega township project - Paradise City. The City is being developed at Palghar (W).

An online news portal about business and economy - economictimes.indiatimes.com, writes about it, “The second phase offers 3,000 units for sale comprising 1RK, 1, 2 and 3 BHK formats, ranging from 340 sqft-930 sqft and shops ranging from 5,155 sqft-7,950 sqft. “

Further the news portal quotes a statement of the Company, “In less than two weeks, almost 100 per cent of the project's first phase was sold out. Paradise City is a mega affordable housing project that offers the convenience of modern living coupled with a green and clean environment. The project will offer over 20,000 designed homes at affordable prices.”

In the analysis, the news portal writes, “The well planned township is demarcated in 16 sectors; the second phase includes sectors 4, 5 and 6 and shops from 1, 2, and 3 which are open for bookings from today onwards.”

Another news portal - www.business-standard.com, writes about Phase II of Paradise City, “Paradise City is a mega affordable housing project that offers the convenience of modern living coupled with a green and clean environment. With close proximity to Palghar railway station, the project will offer over 20,000 elegantly designed homes at affordable prices; offering customers the best of modern amenities. As part of its holistic living experience the project will also have dedicated areas for retail establishments, at attractive price points. The well planned township is demarcated in 16 sectors; the second phase includes sectors 4, 5 & 6 and shops from 1, 2, and 3 which are open for bookings from 24th December 2010 at Kurla West and Palghar West.”

If you want to buy a home, it is a good time like investment in fund of New Exchange Traded Gold Fund of Axis MF.

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Short Term Income Fund Scheme Launched by Fidelity Mutual Fund

Recently, Fidelity Mutual Fund announced the launch of Fidelity Short Term Income Fund. It is an open ended income scheme that aims to generate reasonable returns primarily through investments in fixed income securities and money market instruments.

An online news portal about business and economy - economictimes.indiatimes.com, quotes a statement of Fidelity Investment Managers, Managing Director and Country Head - India, Ashu Suyash, “At a time when investors have turned risk averse with hardening interest rates and increasing equity market volatility, we believe that Fidelity Short Term Income Fund could provide reasonable returns even over shorter periods of time.”

As per the news portal, “The NFO for the fund will open from November 19 and closes on November 30.”

So, now the fund is not available. Its closing date is very near now. Now, you can’t buy it.

Further, Ashu Suyash said to ET, “With this launch, we hope to reach out to a wide section of investors with an investment option that will leverage our expertise in bottom-up credit research to provide better post-tax returns over other interest bearing instruments including deposits.”

Short Term Income Fund Scheme of Fidelity Mutual Fund reaches a wide section of investors with an investment option.

About the Short Term Income Fund Scheme of Fidelity Mutual Fund, the news portal writes, “The fund presents a key building block for the asset allocation plans of retail and high net-worth investors and is in line with our overall objective of helping investors in reaching their financial goals.”

So, the fund basically presents a key building block for the asset allocation plans of retail and high net-worth investors and helping investors in reaching their financial goals. The investment plan was just like new open-ended exchange traded fund of Axis Mutual Fund.

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New Exchange Traded Gold Fund Launched by Axis MF

Recently, Axis Mutual Fund announced the launch of its new open-ended exchange traded fund. It is known as Axis Gold ETF. It is focused to on gold-related investment and derivatives.

An online news portal about business and economy - economictimes.indiatimes.com, quotes a statement of Axis MF, “The fund will allocate a maximum of 100 per cent of its corpus for investment in gold, including derivatives. It might also invest up to 10 per cent of its corpus in money market instruments.

Market sources said Axis MF aims to mop up Rs 300 crore through the new fund offer (NFO), which closes on November 3.

The minimum investment in the Axis Gold ETF NFO is Rs 5,000.” So, the fund comes with 100% allocation of its corpus for investment in gold. It includes derivatives also. Minimum investment in this fund is Rs. 5000.

The news portal quotes a statement of Axis AMC Managing Director & CEO Rajiv Anand also, “Axis Gold ETF will give investors an opportunity to participate in gold as an asset class. Investors prefer gold in their portfolio as it acts as a shield in times of market turmoil.”

Further the news portal adds, “The scheme will be benchmarked against the domestic price of gold. The ETFs will be listed on the National Stock Exchange.

Following its listing, Axis Gold ETF will be the seventh listed gold ETF on the Indian bourses. The total assets under management (AUM) of the six fund houses that had listed gold ETFs on domestic exchanges as of September 30 was over Rs 3,000 crore.”

The news portal quotes another statement of Mr. Anand, “Performance of gold has been good in the last six years. ETF investment would provide investors liquidity as they can trade in the instrument.” It is really a good news in financial market after the launch of Kotak Secure Invest Insurance and Kotak Wealth Insurance by Kotak Life Insurance.

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Kotak Life Insurance Launches Kotak Secure Invest Insurance and Kotak Wealth Insurance

Recently, Kotak Life Insurance launched two new ULIPs - Kotak Secure Invest Insurance and Kotak Wealth Insurance. These two new ULIPs are compatible with the new IRDA guidelines.

About the two new ULIPs, Kotak Life Insurance said in a statement, “Kotak Secure Invest Insurance is an equity exposure plan and is backed by capital guarantees with in-built investment advice of the guarantee fund. It also helps the customer gain from market participation through the guarantee fund that aims at stable capital appreciation while limiting the downside risk in falling market conditions.”

So, Kotak Secure Invest Insurance is launched as an equity exposure plan. The plan is backed by capital guarantees with in-built investment advice of the guarantee fund. The plan has customer gain also from market participation through the guarantee fund that aims at stable capital appreciation.

Kotak Secure Invest Insurance is the best plan for the current market situation. It offers guaranteed investment and fund. It gives a freedom of market participation also through the guarantee fund.

About the Kotak Secure Invest Insurance and Kotak Wealth Insurance plans, an online news portal about business and economy - economictimes.indiatimes.com writes, “Kotak Wealth Insurance is a complete package that provides investment growth along with comprehensive triple benefits in the event of death. Its power-packed range of eight fund options allows customers to balance their risk profile with the tenure their investments.”

So, Kotak Wealth Insurance plan is also a complete package with investment growth along with comprehensive triple benefits in the event of death. You can balance your risk profile with the tenure your investments through power-packed range of eight fund options.

Kotak Secure Invest Insurance and Kotak Wealth Insurance of Kotak Life Insurance are the best plan for the current market situation. These are compatible with the new IRDA guidelines also.

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Vodafone Introduces Lowest-Priced Bonus Cards at Rs. 4

This time, Vodafone has introduced its new lowest-priced bonus card at Rs. 4. The bonus card will be featured with 100 local and national SMS or local/STD calls for 8 minutes.

An online news portal about business and economy - economictimes.indiatimes.com writes about the Vodafone Bonus card, “By choosing to deduct Rs 4 from their available talktime, subscribers can get 8 local/STD minutes, calls at 30 paise per minute (to another Vodafone user), 40 minutes of local night calling (to another Vodafone user) or send 100 local/national SMSes. The card will be valid for one day.”

Further the website publishes a quotation of Vodafone, “Priced at Rs 4, the offer is the lowest cost card currently available in the market and is aimed at enabling more people at the grass-root level to stay connected.”

Further the website quotes a statement of Vodafone Essar Chief Marketing Officer Kumar Ramanathan, “We are delighted to launch the most economical bonus offer available in the market. This marks the democratisation of bonus cards, empowering more and more customers to exercise choices at a highly affordable price point of Rs 4.”

Another website about telecom industry - www.telecomtiger.com writes about it, “Existing subscribers can avail information about the Rs. 4 Bonus offer and also activate the service by dialing the special toll free advisory number *121*. On activation, Rs. 4 will be deducted from the main account balance and the benefit will be valid for one day.

The company says that the new Bonus Card is aimed at enabling many more people at the grass root level to stay connected.

The company is also advertising the new Bonus Card through a television commercial (TVC) that features an animated parrot who thinks that these days it is very difficult to buy anything for chaar rupaay.”

It is really the best and lowest-priced bonus card which offers lots of features but it is valid for only one day.

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RBS may sell its Indian commercial and retail unit to HSBC

A buzz has taken strong shape about Royal Bank of Scotland Group Plc that the company may sell its Indian commercial and retail unit to HSBC Holdings Plc. The news is confirmed by economictimes.indiatimes.com, an online news portal about business and economy.

The news portal quotes a statement, “The sides may agree a deal as early as next month. The unit has about 1.3 million customers, 1,800 employees and 28 branches. The bank has announced the sale of four overseas units this week after agreeing to sales in Argentina, Kazakhstan, Pakistan and the United Arab Emirates.”

Further the news portal reports, “Banco Santander SA, Spain’s biggest bank, offered as much as 1.7 billion pounds ($2.52 billion) to buy more than 300 RBS branches in the U.K.”

About the assets of bank, the news portal quotes, “The bank’s assets ballooned to more than 2.2 trillion pounds, about 1 1/2 times Britain’s annual economic production at its peak in 2008. Following the world’s biggest bank bailout in 2008, assets fell to 1.58 trillion pounds at the end of March.”

“…HSBC, Europe’s largest bank, on Thursday agreed to buy the RBS Kazakh retail unit for as much as $52 million in cash as it bolsters its presence in countries trading with China. A spokesman for London-based HSBC declined to comment on talks about a possible purchase of the RBS India unit. At the moment, the bank has 2 million customers and 35,000 employees in 50 branches across India.”

In the conclusion, the news portal writes, “RBS is withdrawing from 16 countries and scaling back in a further 21. It will remain in 17 “core countries,” including the U.S., Australia, China, France, Germany, the Netherlands, Sweden and Spain.”

It is the biggest news in banking sector after merge of Bank of Rajasthan in ICICI. Let’s see what happen in coming future about the talk. RBS may sell its Indian commercial and retail unit to HSBC or not?

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Bank of Rajasthan to be acquired by ICICI

India’s second largest Private sector Bank – ICICI again in the queue of acquiring other banks. The Bank will acquire Bank of Rajasthan. It would be the 3rd acquisition by ICICI bank in the last decade.

Chanda Kochhar who is the ICICI Bank MD & CEO talks to ET, “We have reached an indicative pricing with the promoters on a swap ratio of 25:118. (A BoR shareholder will receive 25 ICICI shares for every 118 BoR shares held.) This is, however, subject to due diligence. Our understanding of the strategic value is that it would have taken us three years to build the current account and savings account relationships. Also, the deal prices the market capitalisation per branch in the range of around Rs 6.5 crore, which is similar to other old private sector banks.”

Further economictimes.indiatimes.com, an online news portal about economy and business writes, “The indicative price of Rs 188 according to the share swap would be a steep jump compared with the current market price. The ICICI Bank scrip on Tuesday closed at Rs 889.35 on the Bombay Stock Exchange, down by 1.45% while the BoR scrip rose sharply by 19.95% to Rs 99.5. The current market capitalisation of the bank is around Rs 1,604 crore and a price of Rs 188 would value BoR at Rs 3,032 crore.

Given ICICI Bank’s market capitalisation of Rs 99,125 crore, the bank will have to dilute its equity by less than 3%. ICICI Bank will propose a share-swap transaction with BoR.”

In the analysis of bank branches the news portal writes, “BoR currently has around 466 branches, of which around 280 are in Rajasthan. The move would also offer ICICI Bank a decent network across north India in states like Madhya Pradesh, Haryana, Uttar Pradesh and even Delhi where Bank of Rajasthan has over 20 branches.

ICICI Bank currently has around 2,000 branches of its own. The bank, because of its earlier acquisitions of Bank of Madura in 2000-01 and Sangli Bank in 2006-07, has a good network of branches in the south and west.”

In the analysis of the acquisition the news portal writes, “Interestingly, before the economic downturn, ICICI had considered the possibility of taking over BoR. But the deal fell through as ICICI was unwilling to fork out the money Mr Tayal had asked for. ICICI currently has a high capital adequacy ratio of 19.41% while BoR has a ratio of 11.71% as on December 31.”

Merge of Bank of Rajasthan in ICICI will be the biggest acquisition of capital in the recent history. It is the indication of power and strength of banking capital. It will be known as the biggest acquisition of banking sector. The acquisition will make capitalist development very clear in India. Growth in banking sector can be seen with the hikes in deposit rates of Dhanalakshmi bank.

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Dhanalakshmi Bank Hikes 25 Basis Points Term Deposit Rates

Recently, the most popular Kerala-based bank – Dhanalakshmi announced a 25 basis points increase on its domestic term deposit rates. The term is effective now across all maturities.

In a press release it is said that the new rate are applicable for all domestic term deposits below and including Rs 1 crore across all tenures.

Economictimes.indiatimes.com, an online news portal about economy and business, quotes the release, “Deposit of up to Rs 1 crore will be offered 6.5 per cent for one-year maturity. For deposits from ranging from 366 days to two years, 7.25 per cent, above two years up to five year maturities, the bank will offer 7.50 per cent and above five years up to 10 years, 7.75 per cent.”

Further the release says, “The bank will offer a special rate of 7.75 per cent for 400 days term for deposits up to Rs 50 lakh. It has also waived off pre-payment penalty in respect of all deposit schemes that offer the sweep in sweep out facility as a product feature.”

In the conclusion, the news portal writes, “It has also announced increase in the period of term under its short term, high value deposit schemes from 15 days and 30 days to 46 days and 91 days respectively.”

It is the very good news for investors. However, in the last month Reserve Bank of India increases the short-term lending and borrowing rates and the cash reserve ratio (CRR) by 25 basis points. It was the second time when RBI had hiked key rates and repo rates.

Customers of Dhanalakshmi bank will be able to take the more benefit being a long time maturity holders. The bank gives the maximum returns on the long period maturity plans. The big investors have also the big returns in this plan. The bank has tried to take some more risk in the current market.

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Reserve Bank of India Increases the Short-term Lending and Borrowing Rates and CRR by 25 Basis Points Each

Reserve Bank of India increases the short-term lending and borrowing rates and the cash reserve ratio (CRR) by 25 basis points each in the annual Credit Policy for the year 2010-11.

About this hikes, economictimes.indiatimes.com, an online news portal about economy and business writes, “The repo and reverse repo rates have been hiked to 5.25 and 3.75 percent respectively, and will raise the cost of fund for lenders. It also hiked the CRR, the portion of money that commercial banks deposit with the central bank, by 25 basis points. The CRR hike draws out Rs 12,500 crores from the system.”

This is the second time the RBI has raised rates 25 BPS. In last month, RBI had hiked key rates by 25 bps and increased Repo and Reverse Repo also.

In an analysis the news portal writes, “The RBI has visibly shifted its policy priority to inflation from growth. It has warned that with growth expected to accelerate next year, capacity constraints are likely to put additional pressure on prices and there is a need to ensure that demand side inflation does not become entrenched. More rate hikes can be expected during the year in order to control inflation expectations.”

About the borrowers and banks situations, the news portal writes, “Borrowers can breathe easy for now as most banks have said they are unlikely to raise interest rates in the immediate future. A quarter percent hike does not warrant an increase in the lending or deposit rates. Also, since it is a lean season, the banks may not require deposits in a big way.

However, banks feel that short-term rates and subprime lending rates for corporates could go up. But the prime lending rate may not be adjusted immediately. Interest rates on deposits will not rise now since there are not many deployment avenues with banks.”

RBI has raised the short-term lending, borrowing rates and the cash reserve ratio by 25 basis points each to control the inflation. Despite it, there are no any suitable steps to control it. It is also a short-term step in the monetary policy.

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Cheaper Home Loans at HDFC to 8.25% for First Year

Recently, HDFC announced to lower its home loan rates to 8.25% for the first year in its new dual rate scheme. The scheme is commonly known as teaser loans that are applicable on fresh loans.

Now, subscriber will able to get a fixed rate of 8.25 % up to March 2011, then 9 % for the next one year. About the cheaper home loans, HDFC said in a statement to ET, “This is a flexible product with dual rates. The fixed rates are applicable for all new loans irrespective of the loan amount.”

So, it is a flexible product that comes with dual rates. About the lower home loans rate at HDFC, economictimes.indiatimes.com, an online news portal writes, “its existing floating rate product would continue without any change where rates are 8.75 per cent for loans up to Rs 30 lakh, 9 per cent for loans between Rs 30 lakh and Rs 50 lakh and 9.25 per cent for loans of Rs 50 lakh and above.”

Further the news portal quotes another statement about the scheme, “This special offer is applicable to all new home loan customers who apply before April 30, 2010, and take at least part disbursement before June 30, 2010.”

So, the offer is only for a limited period. Customers will be able to take the offer, if they apply before April 30, 2010.

HDFC is one of the largest private banks that lower its home loan rate for first year to 8.25%. However, SBI already has extended its 8 % special home loan scheme till April 30.

In the current time, home loans are the biggest source of deriving money for banks. Recently, almost all private bank hiked rates for home and car loans in India.

Currently, Indian market is crossing through the biggest crisis. In this situation, banks are trying to invest in the secure asset rather than share market and mutual fund activities. In the Indian market, banks are crossing through the biggest competition also. Lower home loan rate at HDFC is one of the examples of competition and crisis in the Indian financial market.

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Property Search Application for Apple iPhone by Knight Frank

Recently, the leading independent global property consultancy - Knight Frank announced that its Property Search App is now available from the App Store. Users can search more than 6,000 of the world’s best properties for sale or rent. They can use the application on their iPhone or iPod touch.

Patrick Ramsay who is the head of Residential in Knight Frank said to www.knightfrank.ie, “The Knight Frank App is a mobile window to more than 6,000 of the best properties around the world. It is part of our integrated global coverage giving immediate access to our international network of more than 200 offices in over 34 countries. The quality of properties are reproduced beautifully giving an extraordinary and effective way of showcasing houses on iPhone and iPod touch.”

On the other hand, Jason Leven who is the partner and web development manager of Knight Frank said, “We have extended our award winning Global Residential Search to help iPhone and iPod touch users around the world find the highest quality property available. Using location-based services users can find their nearest property regardless of where they currently are. It only takes one tap to search for all properties that match a chosen lifestyle like water views, skiing, equestrian, golfing, vineyards or sporting properties around the world. If you find a property you like you can save it, email it to a friend or even publish it directly to Facebook©. It couldn't be easier or more fun to browse the best local or global properties on the move.”

Features of the Apple Store Application for Knight Frank Property Search Application:

Search by lifestyle such as water views, vineyards, ski, golf and equestrian

Integrated global residential property search by country, region or postcode

Locate nearest properties for sale or rent using the global GPS search function

View images, floor plans and full brochures

Save favorite property searches for future use

E-mail results to friends and family or link properties to Facebook

Shake to refresh search

Locate nearest Knight Frank office and either call or email with the touch of a button

Unlimited search results

These features are also mentioned by the above mentioned news website. Knight Frank property search application is known as the biggest property search application to search sell, rent or buy a property across the world.

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Portfolio Investment Scheme Launched by Federal Bank for NRIs

Recently, Federal Bank announced to launch Portfolio Investment Scheme for NRIs. The PSI is launched in tie up with Geojit BNP Paribas Financial Services Ltd. It is "hassle free" facilities for investments in stock market.

Managing Director and CEO of Federal Bank - M Venugopalan said to ET, “The bank, which has been authorized by RBI to administer the scheme, was the first among the traditional private sector banks to offer the facility. As per RBI rules, investments by NRIs in Indian share market were permitted under PIS of a bank only.”

Further he talks about the benefits of the scheme, “Under the scheme, NRIs could investment in shares with or without repatriation benefits adding they need to open separate PIS accounts with the bank for repatriation and non-repatriation benefits.”

About the account details, he says, “The trading account would be opened with Geojit BNP Paribas Financial Services Limited. DP account may be opened with Federal bank/Geojit BNP Paribas Financial Services Limited. NRIs need to only issue orders for purchase/sale of shares and the remaining procedures will be handled by the bank and Geojit.”

In the analysis, economictimes.indiatimes.com, an online news portal about economy writes, “Federal Bank has over six lakh NRI clients and has a representative office in Abu Dhabi and Relationship Managers in other Gulf countries.

Geojit BNP Paribas Financial Services Limited Managing Director and CEO C J George said with the two organizations operating together, NRIs could execute transactions in the stock market with maximum convenience.

Geojit BNP Paribas Financial Services has offices in UAE, Bahrain and Saudi Arabia.”

It is not very new offer for the customers because almost all banks have already introduced the scheme. Federal Bank is Kerala-based bank so; people of South India will get some good benefits with the Portfolio Investment Scheme. Recently, we saw the key rates for car and home loans also by all banks.

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Delhi Budget 2010-11 Makes the Life More Expensive for Delhiites

Delhi Finance Minister, A.K. Walia unveiled Delhi Budget 2010-11 yesterday that hiked taxes on a host of items. Delhi Budget 2010-11 makes the life in the city more expensive. He justifies the budget with Games projects. With the budget, it is clear that it's payback time.

About the Delhi Budget 2010-11, economictimes.indiatimes.com writes, “The hike that is likely to hurt most is the increase in the value-added tax (VAT) on diesel from 12.5% to 20%, coming on top of the hikes Pranab Mukherjee had imposed in the Union budget less than a month ago. Higher VAT would mean diesel will cost Rs 2.37 more per litre. Given the widespread use of diesel in transporting goods, it is likely to lead to a cascading effect across the board, partly due to its actual impact on transport costs and partly because it also provides traders with a ready excuse for raising prices.

Higher cooking gas prices would also hit home, quite literally. The Rs 40 per cylinder subsidy on LPG which has been continuing from June 2008 has been withdrawn. In absolute terms, the hike in the cost of an LPG cylinder will come to Rs 41.60 because of the incremental increase in local levies.”

With this budget, Delhiites have to pay more for oil, gases, foods and transport costs that are the basic needs for any cities.

Recently, we saw the effect of Union Budget 2010-11 in comparison of union budget 2009-10. Now, Delhi Budget 2010-11 is very opposite in comparison of last year’s "thanksgiving budget".

Mr. Walia defends Delhi Budget 2010-11 with the examples of other states, “States like Madhya Pradesh and Punjab charge a far higher VAT on diesel than we do and we made the best efforts to keep the hike at the minimum possible, which is why we did not touch the VAT on petrol. As for the subsidy, name one state that continued it for so long after the original hike that had necessitated it was withdrawn. We were concerned so we footed the bill, but now we need this money for other welfare projects like widow pension etc.”

So, the government will not responsible for the crisis of common man’s life. Now, it is completely clear that the capitalist system has no way to solve recession and crisis rather than increasing difficulties in the life of common people.

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RBI Hikes Key Rates by 25 bps and Increases Repo and Reverse Repo

Recently, RBI announced to hike short-term interest rates - repo and reverse repo - by 25 basis points. Raises in key rates by 25 bps may hike home and auto loans also.

About the key rates hikes, economictimes.indiatimes.com, a news portal writes, “Home loan rates may harden in April, banks will be hit by bond losses, and retail borrowers will have to cough up a little more EMI, with the Reserve Bank of India unexpectedly hiking interest rates on Friday evening, a month before the monetary policy.”

Further the news portal writes, “Banks pay the repo rate to borrow from RBI and receive the reverse repo rate for parking surplus funds with the central bank. The repo rate is up from 4.75% to 5% while the reverse repo rate is up from 3.25% to 3.5% with immediate effect.”

Chanda Kochhar who is the ICICI said to ET, “The bank will wait and see the credit offtake and systemic liquidity to assess the medium-term impact on lending and borrowing rates”. “Currently, there is ample liquidity in the market.”

According to the RBI, “Headline WPI inflation on a year-on-year basis at 9.9% in February 2010 has exceeded our baseline projection of 8.5% for end-March 2010.”

According to the Keki Mistry who is the vice-chairman and managing director of HDFC, “In the short term, cost of funds is unlikely to change much... It’s more a signal.”

Already almost all private banks have hiked interest rates for home and car loans. Now, it is the second phase when again home and car loans may hike after the hike of RBI key rates by 25 bps within a month.

In the analysis, RBI has raised the short-term interest rates - repo and reverse repo - by 25 basis points to control the inflation. What are your opinions about the hikes? Write to us your opinions about the hike. How will it affect the economy of India?

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Almost All Private Banks Hike Rates for Home and Car Loans in India

Recently, almost all banks hike rates for home and car loans in India. In this series, the HDFC Bank, the ICICI Bank and the Kotak Mahindra are the main player. The banks have raised rates on home and auto loans.

About the hike, Economictimes.indiatimes.com which is the India’s news portal writes, “These private banks have raised lending rates by as much as 100 basis points, following the hardening of market rates even as the central bank holds on to low rates to avoid derailing the economic growth. A basis point is 0.01 percentage point. RBI has started slowly rolling back some liquidity-boosting measures and has indicated it may not hesitate to raise rates. It raised the cash reserve ratio by 75 basis points in the last review.”

Further the news paper quote a statement of Pralay Mondal who is the country head in HDFC Bank of retail assets & credit cards, “The increase in the cost of funds is being passed on to customers. It has been done to protect our margins.”

On the other hand, Kamlesh Rao who is the retail assets head in Kotak Mahindra Bank said to the news paper, “We had increased fixed deposit rates by 75 bps in the past couple of months. The increase in lending rates is to align it with the rise in deposit rates.”

About the new charges, the news portal writes, “ICICI Bank will now charge 8.75% for loans up to Rs 30 lakh, 9% between Rs 30-50 lakh and 9.5% for loans over Rs 50 lakh. It was earlier offering loans at 8.25% for two years. From the third year it would have been floating reference rates minus 3.5%.

The bank has also hiked its auto loan rates by 25-50 bps from March 5, thus increasing the rack rates to 9.75-11%. HDFC’s home loan rates have reverted to 8.75% for loans up to Rs 30 lakh, 9% for loans between Rs 30 lakh and Rs 50 lakh and 9.25% for loans over Rs 50 lakh. Till last month, it was offering loans at a fixed rate of 8.25% up to March 31, 2012, after which the loan would revert to the prevailing floating rate.

Kotak Mahindra has increased its auto loan rates by 50-100 bps. With this hike for super premium cars, the rates would now be 9.25-9.75%. For premium segment cars it would go up to 10-10.25% while for lower end cars the rates would be 10.75-11%.”

The hike is due to Reserve Bank of India policy rates change. During the Union Budget 2010-11 presentation, there was a symptom of hiking in the loan rates. The hike will create more crisis and inflation in Indian economy rather than relaxation.

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Union Budget 2010-11 is nothing but collections of data

Today, 26th February, 2010 Pranab Mukharjee introduced Union budget 2010-2011 that was nothing but collections of data. He just figured out the area in which he has to invest some capital.

You can see it as:

Vision:

GDP Growth to be targeted at 9%

Target of Rs 25,000 crore disinvestment

Inflation Rate to be lowered in 2 Months

Banking:

Additional Banking License to Private Banks

Rs 1,200 crore to be allocated to PSU Banks

Banks for all villages with a population of 2,000

Infrastructure:

Rs. 1.37 lakh crore for Infrastructure development

Railways to be allocated Rs 16,772 crore

Road Development allocation Rs. 19,894 crore

NREGA Allocation at Rs 40,100 crore

Bharat Nirman Yojna – Rs 48,000 crore

Goa – Rs 200 crore special package

Education:

Rs 31,036 crore for School Education

Sarva Sikha Abhiyaan – Rs 36,000 crore

Housing:

Indira Awas Yojna to Rs 10,000 crore

Rs 61,000 crore for rural Development

Social Sector:

Farmer Fund for Women – Rs 100 crore

National Health Insurance Scheme for NREGA Workers

Technology:

Rs 19000 crore for Unique ID Project

Rupee to have new Symbol

Expenditure:

15% rise in plan expenditure

Defence – Rs 147,344 crore

Taxation:

Income up to Rs. 1.6 lakh – no tax

Income from Rs. 1.6 lakh – Rs 5 lakh – 10% tax

Income from Rs 5 lakh – 8 lah – 20% tax

Income of above Rs 8 lakh – 30% tax

Corporate Surcharge reduced from 10% to 7.5%

Minimum Alternative Tax increased to 18% from 15%

Excise Duty hiked from 8% to 10%

Service Tax remained at 12% for Goods

No Service Tax on News Agencies

Petrol, Diesel Prices to go up

It was overall data which introduced by Pranab Mukharjee in parliament for 2010-2011 union budget. We already have seen last year union budget 2009-10. Now, common people are suffered from the raise in prices but there is no data in this budget how to control it.

Unemployment and recession is the biggest problem for common people but there is no data how to control it. Is it common man budget? I don’t think because today prices of petrol and diesel hiked near about Rs 3.

On the one hand, accumulation of capital is getting gathers but on the other hand, common people are getting poorer. In the system of profit, there is no way to win over recession. Therefore, now there is only way – production and means of production go in social hands.

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About One Lakh Job Opportunities in IT Companies

To improve economic conditions, IT Companies may hire about one lakh workforce. Indian IT players will hire nearly one lakh work force to improve economic conditions of India.

Recently, an analysis about the hiring plans came in light. According to the analysis, IT companies may hire more than 98,000 headcounts in coming future. In this scenario, it is considered that the industry is back on track with many projects.

In the recent prospectus, TCS may hire about 30,000 workforces in next fiscal year. However, Infosys has planned to hire 16,000 people this year. On the other hand, Genpact would hire 10,000 people.

In this lists, IBM is looking to recruit about 5,000; Accenture 8000 and Mphasis 2000. It is being estimated that the domestic IT market will get a growth about 19-20% in 2010. However, in 2009, the growth was only 2.6%.

The fact is very vague now because there is no real recruitment currently. Currently, unemployment is the biggest fact for Indian workforce. It is very similar to boom in Indian property market of 2009.

So called boom in IT market will clear very soon when end of the year we will get a real facts and analysis about unemployment and hiring.

According to our analysis, we don’t see any scope in IT recruitment on so large scale. In 2009, hiring freeze, layoffs and salary cuts was a common problem. More than one lakh real workforces were deducted from IT companies.

If, IT infrastructure has given a new face of Indian workforce or people then it had minimizes the scope of jobs also. Overall, it is not a boon rather than difficulty for Indian employers.

Analysis can gives many data but the reality of IT companies is very clear to us from beginning of 2008. We already have seen many analysis and data in 2008 and 2009 also.

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