The Hindu Business Line : Weekly News Round up

Tata Steel reported a 61 per cent drop in its consolidated net profit at Rs 4,849 crore for the year ended March 31, 2009, against Rs 12,322 crore registered in the same period last year mainly due to a sharp fall in demand in Europe and South Asia. Mr B. Muthuraman, Managing Director, Tata Steel, said that profit was affected by the unprecedented economic crisis globally in the second half of 2008.

Mr Nandan Nilekani, co-chairman of Infosys Technologies, has been appointed by the Government to head a newly created authority that will supervise the creation of a unique identification database of the country's citizens. As chairperson of the Unique Identification Authority of India, Mr Nilekani would get the rank of a Cabinet Minister.

The Government will bail out the loss-making state owned carrier Air India but has set certain conditions for providing the financial assistance. As a first step, Air India has been asked to submit within a month a comprehensive restructuring proposal to turn around the airline.Air India is targeting a reduction of almost 17 per cent or Rs 500 crore of its annual wage bill of more than Rs 3,000 crore. The airline is passing through a severe financial crisis, losing almost Rs 15 crore a day.

Wholesale price inflation continued in the negative for a second straight week. The annual WPI-based inflation declined by 1.14 per cent during the week ended June 13, easing marginally from the minus 1.61 per cent recorded in the previous week. In food articles, inflation fell to 8.65 per cent from 8.71 per cent in the week ended June 6 due to fall in cereals prices.

State Bank of India on Wednesday said it will cut its benchmark prime lending rate by 50 basis points to 11.75 per cent with effect from June 29. The latest action by India's largest bank is expected to encourage other public sector banks also to pare their lending rates.SBI had earlier cut its term deposit rates by 25 basis points across all maturities with effect from June 15. All loans including home loans, which are linked to BPLR, will benefit from the latest rate cut.

Mahindra Satyam, the rechristened Satyam Computer Services, will merge with Tech Mahindra as part of an effort to promote greater synergies. Both Mahindra Satyam and Tech Mahindra will exist under the Mahindra group umbrella, but will act as one entity. Mr C. P. Gurnani, Head of Global Operations of Tech Mahindra, is now CEO of Mahindra Satyam while Mr Sanjay Kalra, who was President (Strategic Initiative) at Tech Mahindra, has been elevated as the CEO.

Compiled byM J Madhavan
Podcast S Vasudevan
A Srirengarajan