SBI’s deposit rate hike sets stage for rise in interest rates
State Bank of India (SBI) on Tuesday raised rates on bulk deposits by 50-140 basis points, a move that may prompt rival lenders to increase interest rates, given tight liquidity conditions and the expected rise in loan demand. This is the second such rate hike by SBI on deposits over Rs1 crore, usually referred to as bulk deposits, in two months. SBI’s bulk as well as retail term deposit rates range between 5.25% and 6.25%. One basis point is one-hundredth of a percentage point.
Walmart in talks to buy a significant minority stake in Flipkart
Walmart Stores Inc, the world’s biggest retailer, is in advanced talks to acquire a significant minority stake in leading ecommerce marketplace Flipkart, two people with knowledge of the development told ET. A deal could be finalised by March, they said. Chief executive officer Doug McMillon led a delegation that visited Flipkart’s Bengaluru office early last week as part of this exercise, said the people cited above. The other members of the team included Walmart ecommerce CEO Marc Lore, founder of Jet-.com that was acquired by Walmart in 2016, and Judith McKenna, who will take over as president and CEO of Walmart International on February 1. She’s currently chief operating officer of Walmart.
Dabur takes Marico to court for ‘trademark infringement’
DaburBSE 0.17 % has taken rival MaricoBSE -0.51 % to the Delhi High Court for allegedly violating trademark and copyright laws by comparing their hair oil products and denigrating its Dabur Amla in a print advertisement. “It is a case of trademark infringement as well as disparagement of Dabur Amla,” said a person aware of the case. The court issued a notice to Marico and scheduled the next hearing for February 7, the person said. Another person said Marico ran print ads last week that used pictures of Dabur Amla hair oil and compared it with its Nihar Shanti Amla hair oil.
IOC profit doubles in Q3 on inventory gains
Indian Oil Corporation Ltd has reported a Rs. 7883.22-crore net profit for the third quarter of the financial year 2017-2018. This is 97.33 per cent higher than the Rs. 3994.91-crore bottom line reported in the corresponding period of the financial year 2016-2017. Speaking to reporters after the board meeting, Chairman Sanjiv Singh said: “The higher profit is on account of higher inventory gains and improved performance during the quarter under consideration.” The board declared an interim dividend of Rs. 19 per equity share (face value Rs. 10 per share.) It also recommended issue of bonus shares in the ratio of one equity shares of Rs. 10 for one equity share of Rs. 10 each.
State Bank hikes rates on bulk, senior citizen deposits by 50-140 bps
National banking bellwether State Bank of IndiaBSE 0.59 % raised interest rates on deposits for the first time in five years as it prepares to raise the lending game after the government strengthened it with capital investment and the trauma of bad loans eased. SBI follows private sector lender Axis Bank which raised deposit rates marginally last month in the first indication of rates hardening in the system as economic activity accelerates.
BoI recovers Rs 3,000 crore bad loans in a month
Bank of India has recovered Rs 3,000 crore in the last month by invoking standby letter of credit, or SBLC, and guarantees of defaulters, said its chief executive. “Since the time RBI has imposed prompt corrective action (PCA), we have recovered Rs 3,000 crore by invoking SBLC,” said Bank of India chief executive Dinabandhu Mohapatra. “The remaining loans under SBLC will be recovered in the next one month or so,” he said without quantifying how much it would be.
Govt likely to raise Rs 1 lakh crore through divestment in next fiscal
India’s government may look to raise as much as a record Rs 1 lakh crore ($15.7 billion) from the sale of state assets in the next fiscal year to help meet tough fiscal deficit limits while giving it room to boost spending and woo voters before general elections that must be called by early 2019. Investment bankers and economists expect the finance minister, Arun Jaitley, to set an ambitious target for the year beginning on April 1 following strong sales in the current fiscal year to the end of March.
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