26 August, 2013

Banks offer higher rates on NRI deposits

Non-resident Indians are being wooed with higher rates of interest by several banks after the Reserve Bank of India allowed lenders to offer NRIs a better return than local depositors and relaxed reserve requirements on these deposits.

The freedom to price deposits is available only on those with tenures above three years. On its part, Federal Bank has hiked its non-resident external (NRE) term deposit rates in the three-year and above bucket to 9%, which is higher than the 8.75% offered on identical domestic deposits. The bank has seen a 50% growth in its NRE deposits in the first quarter of FY14 when compared to the same period last year. "A higher NRE rate than the domestic term rate would give a further boost to the remittances business," said A Surendran, head, retail and international banking, Federal Bank.

Bankers said that a hike in NRE rates of long-term maturities is a more cost-effective way of raising resources from abroad when compared to NRI bonds as the latter would entail additional costs like having roadshows overseas. In the past, the government has relied on State Bank of India to raise funds from NRIs through the Resurgent India Bonds in 1998 and India Millennium Deposits in 2001.

Oil-rich South Sudan looks to India

South Sudan is looking to India to improve its agricultural and food security practices and hopes the New Delhi visit of Salva Kiir Mayardit, the president of the world's youngest nation, will "lay a solid foundation to further promote bilateral relations", a senior minister of the oil-rich African nation said here.

"We know the Indian government is preparing to give the president a warm welcome. We are looking forward to the outcome as it would strengthen the ties between the two countries", Barnaba Marial Benjamin, South Sudan's minister for foreign affairs and international cooperation, told IANS during a visit here.

Mayardit, accompanied by a large delegation comprising ministers, officials and business leaders, will be in India Aug 26-28 at the invitation of Prime Minister Manmohan Singh. The invitation was delivered to Mayardit Aug 9 by India's special envoy to South Sudan PS Raghavan, a special secretary in the external affairs ministry.

NSEL may face payment crisis again; mops up only Rs 8.50 crore

The beleaguered National Spot Exchange Ltd (NSEL) is expected to face a payment crisis yet again as it managed to collect only Rs 8.50 crore till Friday - the last day for pay-in, against the pay-out of Rs 175 crore to be made on Tuesday.

For the first settlement, the exchange could mop up only Rs 92 crore which has been distributed among investors. There was a shortfall of Rs 82 crore.

"We have asked NSEL to sell stocks and recover the money. We are still evaluating concerted action against the exchange," BSE Brokers Forum official Alok Churiwala

Infosys: Narayana Murthy overturns CEO SD Shibulal's move

Infosys Technologies under chairman NR Narayana Murthy is centralising decision making, several senior executives said, in a development that has implications for the time the company takes to respond to client needs or market changes.

The chairman's office — the new power centre created after the return of retired cofounder Murthy — has to sign off on key decisions related to large technology contracts, such as pricing or the way a deal is structured that might expose Infosys to future risks, at least three senior executives told ET on the condition of anonymity.

"For all practical purposes, Murthy is the chairman, CEO, COO all rolled into one," said one of the executives.

Centralisation drive

Before Murthy's return, chief executive officer SD Shibulal was in the process of decentralising decision-making, especially those related to negotiating and signing contracts.

Australia's Haddin sets new wicketkeeping record

Australia's Brad Haddin set a new world record for most dismissals by a wicketkeeper in a Test series when he caught England's Joe Root on the final day of the fifth Ashes match at The Oval on Sunday.

Root's exit saw Haddin complete his 29th dismissal of the five-match series, surpassing the mark of 28 set by Australia wicketkeeping great Rodney Marsh, now a selector, against England during the 1982/83 Ashes in Australia.

In both cases, all the dismissals were caught.

England players celebrate Ashes win by urinating on Oval pitch

In an embarrassing display about five hours after the last Ashes Test was stopped due to bad light with England close to victory, the players gathered near the Oval pitch and urinated on it in turns to the cheers of their teammates.

According to news.com.au, while the centre of the ground was quite dark, lights were on in the grandstands with dozens of people still cleaning up after a late finish, which saw the game go beyond usual time.

A number of players including Stuart Broad, Kevin Pietersen and James Anderson are said to be involved in the act, the report said.

Curator Cam Sutherland said that it was not a good look and called it unfortunate.

Gopichand Academy bags award

The Pullela Gopichand Badminton Academy (PGBA), which has been producing world class shuttlers like Saina Nehwal, PV Sindhu and P Kashyap, has been honoured by the union government on Thursday.

The sports ministry has recommended the Rashtriya Khel Protsahan Puruskar for the PGBA. The other entities recommended for this honour are Services Sports Control Board (for financial support ), Petroleum Sports Promotion Board (Employment for sportspersons and welfare measures) and UK Mishra, National Sports Academy , Allahabad (Community Sports Identification and Nurturing of Budding Young Talent).