06 September, 2013

Banks offer luxury car loans below base rate

As the slugfest in the passenger vehicle market gets bloody, banks are now offering loans at below the RBI-mandated base rate. Termed a "grey area", these special schemes are on offer for luxury car customers with loan size upwards of Rs 40 lakh. Banks like ICICI offer special schemes under which luxury car customers get auto loans at 9-9.15%, which is below its base rate of 10%. Other non-bank lenders and captive financing outfits offer rates as low as 7.5-8%. This is much cheaper than the standard rack rate - the rate for walk-in customers - of over 11%.

When contacted, ICICI Bank refused to comment. However, sources in the financing circuit say that banks get around the RBI's base rate stipulation by booking the loan at the base rate on their books and booking dealer payouts separately as promotional cost or brokerage cost. "This means that if the rack rate on luxury cars is 11.5%, then dealer payout will mean 2-2.5% knocked off the interest rates so the effective rate of interest is actually lower than the base rate of 10%," said a senior source with one of the top three auto financing firms.

ONGC Videsh Ltd Q1 profit jumps 72 per cent to Rs 837 crore

ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), today reported a 72 per cent jump in its net profit in the June quarter on the back of higher crude oil and natural gas output.

Net profit in April-June quarter rose by 71.9 per cent to Rs 837 crore from Rs 487 crore in the same period a year ago, the company said in a statement here.

Crude oil production rose 15.7 per cent to 1.335 million tons in Q1 while natural gas output rose 18.7 per cent to 0.807 billion cubic meters.

"Oil production is higher mainly due to production from newly acquired ACG fields in Azerbaijan and resumption of production from South Sudan," OVL said.

ONGC Videsh Ltd (OVL) has interest in 32 projects in 16 countries, out of which 11 are producing projects, 5 discovered/ under-development projects, 14 exploratory projects and 2 pipeline projects.

Videocon Industries Q1 net down 79 pc to Rs 10.63 crore

Videocon IndustriesBSE 0.32 % today reported 78.78 per cent decline in standalone net profit at Rs 10.63 crore for the first quarter ended June 30, 2013, mainly on the account of sharp increase in finance cost.

The company had reported standalone net profit of Rs 50.11 crore for the same quarter a year ago.

Videocon Industries' finance cost increased by 54.54 per cent to Rs 602.84 crore in the quarter under review as against Rs 390.08 crore in the corresponding quarter last year, the company said in a BSE filing.

Net sales during the quarter were at Rs 3,032.45 crore, marginal increase of 0.48 per cent compared with Rs 3,018.02 crore in the same quarter last year.

Its revenue from consumer electronics and home appliances during the quarter increased by 4.73 per cent to Rs 2,778.75 crore, and crude oil and natural gasBSE 7.17 % declined by 29.29 per cent to Rs 259.82 crore.

Videocon IndustriesBSE 0.32 % today reported 78.78 per cent decline in standalone net profit at Rs 10.63 crore for the first quarter ended June 30, 2013, mainly on the account of sharp increase in finance cost.

The company had reported standalone net profit of Rs 50.11 crore for the same quarter a year ago.

Videocon Industries' finance cost increased by 54.54 per cent to Rs 602.84 crore in the quarter under review as against Rs 390.08 crore in the corresponding quarter last year, the company said in a BSE filing.

Net sales during the quarter were at Rs 3,032.45 crore, marginal increase of 0.48 per cent compared with Rs 3,018.02 crore in the same quarter last year.

Its revenue from consumer electronics and home appliances during the quarter increased by 4.73 per cent to Rs 2,778.75 crore, and crude oil and natural gasBSE 7.17 % declined by 29.29 per cent to Rs 259.82 crore.