15 August, 2013

Telecom companies seek to increase mobile call rates by 10p/minute

Consumers should brace for a more than 15% rise in cost of making calls over mobile phones as some operators consider increasing rates, albeit gradually, to boost profitability and increase their cash flows.

"All we want is 10 paise (per minute) more from customers," said a top executive at one of India's largest mobile phone operators. "And that too, over a period of time, not at one go. I am sure they (customers) won't mind."

The extra 10 paise is all that most top mobile phone operators would need to boost profitability, and generate enough cash to fund capital expenditure plans which would be the bedrock of their future growth, this person

Public sector bank heads may get more sops for debt recovery

The finance ministry plans to increase the weightage given to debt recovery in the appraisals of top public sector bank managers in an effort to stem the rising tide of bad loans at these lenders.

The ratio of non-performing assets to total credit of state-run banks rose to 3.78% in March 2013 from 3.17% a year ago. At present, a bank chairman can claim up to 8 lakh as incentive if he scores a perfect 100 on the appraisal matrix. The performance incentive for executive director is 6.5 lakh.

"Besides credit growth and other banking parameters, there is a need to focus on recoveries. If the top brass at the banks make an extra effort towards it, the action will percolate to the lower ranks," a finance ministry official said requesting anonymity.

The performance of a PSU bank and its