The Hindu Business Line : Weekly News Round up

State Bank of India has snipped interest rates by 25-50 basis points on deposits up to five years duration. This is the second time in as many months that it has cut term deposit rates. Last month, the bank had reduced term deposit rates by 25 basis points across all maturities. The latest round of interest rate-cuts on term deposits is effective from November 9. Even as it cut term deposit rates, the bank announced extension of its 8 per cent home loans campaign up to March 31, 2010 following good response to the scheme.

Bharat Sanchar Nigam Ltd joined the ongoing mobile tariff war by announcing a slew of initiatives, including a scheme based per second billing. BSNL's mobile services would be available at 1 paise per second for local and STD calls within its network. Calls to other networks shall be made available at 1.20 paise per second. The move follows similar announcements by private players, including Bharti Airtel, Reliance Communications, Tata Teleservices and Vodafone Essar. For those who want to remain on the minute-based tariff scheme, BSNL has announced 49 paise per minute for all local and STD calls. In this plan, SMS is priced at 49 paise .

Microsoft's latest Operating System Windows 7 will soon be available off-the-shelf and so will a host of other new software packs. This is because the Central Board of Excise and Customs has clarified on the issue of applicability of tax on such software. The lack of clarity had been holding up software consignments at various Indian ports for weeks now. IT distributors and software makers are hoping that consignments will now move out of cargo complexes to the retail shelves.

The Centre has fixed the minimum support price for the current year's wheat crop (to be harvested from April next) at Rs 1,100 a quintal. The Rs 1,100 rate, approved by the Cabinet Committee on Economic Affairs on Thursday, represents a Rs 20 rise over the minimum support price of Rs 1,080 a quintal for the 2008-09 crop. The MSP is also lower than the ruling market price of Rs 1,400 a quintal in Delhi or the more indicative harvest-time April 2010 NCDEX futures quote of Rs 1,296 a quintal.

GVK Power & Infrastructure Ltd would acquire a 12 per cent stake in airport operator Bangalore International Airport Ltd for Rs 484.5 crore. GVK, which is also upgrading the Mumbai airport, will buy the 4.61 crore shares being offloaded by Zurich Airport - the original co-promoter of the new Bengaluru International Airport. GVK and Zurich Airport have also entered into an alliance to bid for airport development projects in the sub-continent. The Swiss company will keep 5 per cent stake and continue to operate the 17-month-old BIA. Bangalore International Airport built at nearly Rs 2,500 crore, is promoted by Siemens Project Ventures, Zurich Airport,

Wipro Ltd has brought the iconic Yardley London brand into its fold. Wipro Consumer Care and Lighting, the FMCG arm of Wipro, announced that it has acquired the Yardley businesses for Asia, Australasia and the North and West African markets for close to Rs 214 crore from the UK-based Lornamead Group, which currently owns the brand. The Group has, however, retained its Yardley businesses in Europe and the Americas. The Yardley deal, to be fully funded through internal accruals, would be for $24 million or Rs 113 crore and the transaction is expected to be completed by mid-December.

The annual Wholesale Price Index-based inflation in primary articles rose 8.94 per cent for the week ended October 24, up from the previous week's yearly rise of 8.67 per cent, with the index for food items up 13.39 per cent during the latest reported week. The surge in food articles was led by potatoes, onions, pulses and rice.

A robust jump in non-interest income helped State Bank of India post a net profit of Rs 2,490 crore in the second quarter ended September 30, 2009, up 10 per cent compared with Rs 2,260 crore in the corresponding period last year. Non-interest income rose 50.45 per cent. Net interest income was up marginally by 2.81 per cent. Total income for the quarter ended September this year rose 19 per cent to Rs 21,301 crore against Rs 17,910 crore in the corresponding period last fiscal.

Hindustan Unilever Ltd has reported a 21.6 per cent drop in net profit for the quarter ended September 2009 due to mark-to-market forex losses and restructuring costs. Net profit fell to Rs 428.53 crore from Rs 546.61 crore during the same year-ago period, even as net sales recorded a five per cent rise to Rs 4,228 crore against Rs 4,027 crore. Operating profit grew 16.48 per cent to Rs 605.72 crore against Rs 520 crore.

Compiled by M J Madhavan
Podcast S Vasudevan