Hot Topic on India Inc. - January 20

Canara Bank Changes its Logo

Public sector banking in India is working overtime to catch up with the new jet set generation of today! Image overhauls are the call of the day with various public sector banks presenting a new look to appeal to the contemporary generation in India.

Bank customers are spoilt for choice these days. Foreign banks with their sophisticated images and hi-tech services make the competition stiffer. Next in line after Bank of Baroda and Jammu & Kashmir Bank, Canara Bank is all set for an image makeover! The upgrade is an attempt by the 100 year-old bank to retain and attract customers.

What does the new look of Canara Bank imply?

The new image of Canara Bank is reflected in its new logo – a blue and a yellow triangle interlocked. It is said to represent the strong bond between the bank and its customers – both within and outside the organization. The reinvented Canara Bank is focused on strengthening its customer base and improving relations with all its stakeholders – customers, employees, investors, institutions and society in general. The logo is accompanied by the new tagline ‘Together we can’.

Does the new image bring new ideas?

Nearly $3.8 million has gone into the re-branding process – what is the outcome? Apart from a new look, what else has changed for the bank? Are there new improved services for the young customer base including NRIs?

There are proposals to open overseas branches in 21 locations abroad – definitely a blessing for NRIs! Canara Bank has also issued Tier II bonds this month with an ‘AAA’ rating from CRISIL. A series of acquisitions may be in the pipeline followed by an increased stake in Can Fin Homes. The target is to attract an additional 10% business at the least from the 25 – 40 age group. The new logo was released in December 2007 so it’s early days yet to assess the impact of the makeover on the bank’s business. The immediate outcome though was a rise in its stock value on the exchange market!.

Same Article coud be found in www.window2india.com

Hot Topic on India Inc.

Rel Power IPO subscribed 10.5 times
The mega initial public issue of Anil Dhirubhai Ambani group's Reliance Power became the largest ever in India after over-subscription of more than 10.5 times on its opening day on Tuesday.Offered at a price band of Rs.405-450 for 228 million shares at a face value of Rs 10 each, the issue invited bids for 2,397,558,825 shares, data available with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) showed. The issue closes on January 18.While institutional buyers were required to pay 10 per cent of the subscription money on application, retail investors had to pay Rs 115, which is around 25 per cent of the issue price.In addition, Ambani and his associates bought the promoters' stake of 32 million shares at Rs 450 per share on the opening day. Thirty percent of the 228 million shares have been reserved for retail investors at a discount of 5 per cent."Within minutes of its opening, the issue was fully subscribed and by the time it ended at 5 pm, the issue had been oversubscribed some 10.54 times," said a senior official at one of the lead book running firms for the issue.

Movement on bourses

The over-subscription came on a day when the 30-share sensitive index (Sensex) of the Bombay Stock Exchange shed 476.96 points, or 2.30 percent, at 20,251.09 points."It seems like people sold some stocks for the public issue," said an analyst with a leading brokerage here, as every index, including those for small-caps and mid-caps, on the BSE ended in the red.

Power generation:

Reliance Power proposes to use the funds to build power generation units across the country with the funds. As per company officials, projects worth 28,000 MW are in the pipeline."This is the largest portfolio of power generation within a geographical area or a group anywhere in the world," Ambani said earlier. The government envisages an addition of 80,000 MW in the 11th plan (2007-2012).The company, which is an associate of Reliance Energy, was in November awarded the 4,000-MW Krishnapatnam power project in Andhra Pradesh, with the lowest bid for a tariff of Rs.2.33 per unit among all qualified bidders. Another major project of the company was the 4,000-MW Sasan power project in Madhya Pradesh, awarded in August.

Calculation of Savings Bank Account Interest

Hi,

Here is the way how you calulate your Saving Bank Account (S.B.A/c) Interest.

Introduction:

Savings accounts are accounts maintained by commercial banks, savings and loan associations, credit unions, and mutual savings banks that pay interest but can not be used directly as money (by, for example, writing a cheque). These accounts let customers set aside a portion of their liquid assets that could be used to make purchases while earning a monetary return.

Features
Obtaining funds held in a savings account may not be as convenient as from a demand account. For example, one may need to visit an ATM or bank branch, instead of writing a cheque or using a debit card. However, this transference is easy enough that savings accounts are often termed near money.
Some savings accounts require funds to be kept on deposit for a minimum length of time, but most permit unlimited access to funds. True savings accounts do not offer cheque-writing privileges, although many institutions will call "savings accounts" their higher-interest demand accounts or money market accounts.
All savings accounts offer itemized lists of all financial transactions, traditionally through a passbook, but also through a bank statement. [Source: Wikipedia]

Metedology:

Interest on S.B.A/c is calculated on half yearly basis. Bank will take the minimum amount kept in the account from the Date 10th of each month to the last day of the month.

For Ex: You Have deposited $1000.00 on 1st of January, Withdrew $ 150.00 on 9th Jan. So, the Balance on 10th Jan is $ 850.00. Again you withdrew $ 500.00 on 20th Jan, ( Bal: $ 350.00) and Deposited $ 300.00 on 25th Jan, ( Bal: $ 650.00) and on 31st Jan, you withdrerw $ 100.00 (Bal: $ 550.00).

Therefore your Minimum Balance kept in the account for the Month of January is $ 350.00 ( 20th Jan).
The same pattern is used for 6 months. Then the total Minimum amount for all the 6 Months is Calculated.
Assuming the total Minimum Balance for 6 Months is $ 2350.00
Assumiing the Prevailing Rate of Saving Bank Account Interest is 4.5% p.a.
The interest for the total Minimum Balance is
= 2350*4.5/100
= $ 105.75 p.a.
= Interest for 6 Months is = 105.75/2
= $ 52.875.




Hope this would help you in Calculating the Interest earned from your Saving Bank Account.

Happy Reading :-)

Warren Buffet - A Principle to Learn

Warren Buffet

There was an hour interview on CNBC with Warren Buffet, the second richest man who has donated $31 billion to charity. Here are some very interesting aspects of his life:

1)He bought his first share at age 11 and he now regrets that he started too late!

2)He bought a small farm at age 14 with savings from delivering newspapers.

3)He still lives in the same small 3 bedroom house in mid-town Omaha, that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.

4) He drives his own car everywhere and does not have a driver or security people around him.

5)He never travels by private jet, although he owns the world's largest private jet company.

6)His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meetings or calls them on a regular basis.

7) He has given his CEO's only two rules. Rule number 1: do not lose any of your share holder's money. Rule number 2: Do not forget rule number 1.

8)He does not socialize with the high society crowd. His past time after he gets home is to make himself some pop corn and watch television.

9) Bill Gates, the world's richest man met him for the first time only 5 years ago. Bill Gates did not think he had anything in common with Warren Buffet. So he had scheduled his meeting only for half hour. But when Gates met him, the meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffet.

10)Warren Buffet does not carry a cell phone, nor has a computer on his desk.11)His advice to young people: Stay away from credit cards and invest in yourself.

I think we all need to follow his policy to the extent it does not harm our Investment.

Thanks for Reading :)
Vinay Danageri

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Chanakya – A Thought Leader

Who was Chanakya?

For centuries to come and the centuries that went by, which recorded in history talking of the great men and legendary characters who shaped time through their vision and exemplary actions. Chanakya, perhaps is the only personality who has been accepted and revered as a genius both by Indian and Western scholars. He is a historical milestone in the making of India amidst tremendous upheavals and myriad’s of reversals. Celebrated as a shrewd statesman and a ruthless administrator, he comes across as the greatest of diplomats of the world. He had the guts to speak his heart out even in front of the rulers, which shows his strong inclination to democratic values and the audacity to put his views through. Although, he lived around the third century BC, his ideas and principles show concurrence and validity in the present day world. Politics was his forte. Diplomacy in a politically charged environment shows his self-confidence and the ability to stay calm in trying situations. His foresight and wide knowledge coupled with politics of expediency founded the mighty Mauryan Empire in India. He was a great laureate of economics with a glittering intellect to perceive the intricate dynamics of the various economic activities and principles. The centuries that succeeded him show distinct effects of his thoughts on the way a kingdom is managed and other facets of economic administration. Even today, one of his maxims on taxation is very much alive and calls for adherence by the governments of the world. According to Chanakya, "Taxation should not be a painful process for the people.

His Dreams.

Chanakya envisioned India as a nation which would place itself as the forerunner – politically, economically and socially. His magnum opus, "Arthashatra", depicts in many ways the India of His dreams. When he wrote this volume of epic proportion, the country was ridden in feudalism and closed and self-sufficient economy. The economy based on indigenous ways of production; was in a transitional phase, moving towards the advanced aspects of distribution and production. Culture and regional politics directed the way in which trade was done. The main activities of the economy were agriculture, cattle rearing and commerce. Among the three, Chanakya considered agriculture to be the most important constituent of the economy. It’s a fact today that the Indian economy of today is an agro based one. Covering various topics on administration, politics and economy, it is a book of law and a treatise on running a country which is relevant even today. People who think that the society in which we live will remain the same; are dissuading themselves of the truth. Society is a complex and dynamic system changing constantly leaving those people behind who say no to change. Broadly speaking, Chanakya dreamt of a country reaching the following levels of development in terms of ideologies and social and economic development:

Some Of His Thoughts

• A self sufficient economy which is not dependent on foreign trade.

• An egalitarian society where there are equal opportunities for all.

• Establishment of new colonies for the augmentation of resources. He also advocated the
development of the already annexed colonies. His imperialistic views can be interpreted as the development of natural and man made resources.

• According to Chanakya, the efficient management of land is essential for the development of resources. It is essential that the state keeps an eye on the occupation of excess land by the landlords and unauthorized use of land. Ideally the state should monitor the most important and vital resource – Land.

• The state should take care of agriculture at all times. Government machinery should be directed towards the implementation of projects aimed at supporting and nurturing the various processes; beginning from sowing of seeds to harvest.

• The nation should envisage to construct forts and cities. These complexes would protect the country from invasions and provide internal security. The cities would act as giant markets increasing the revenue of the state.

• Internal trade was more important to Chanakya than external trade. At each point of the entry of goods, a minimal amount of tax should be collected. The state should collect taxes at a bare minimum level, so that there is no chance of tax evasion.

• Laws of the state should be the same for all, irrespective of the person who is involved in the case. Destitute women should be protected by the society because they are the result of social exploitation and the uncouth behavior of men.

• Security of the citizens at peace time is very important because state is the only savior of the men and women who get affected only because of the negligence of the state. Antisocial elements should be kept under check along with the spies who may enter the country at any time.

• Chanakya envisioned a society where the people are not running behind material pleasures. Control over the sense organs is essential for success in any endeavor. Spiritual development is essential for the internal strength and character of the individual. Material pleasures and achievements are always secondary to the spiritual development of the society and country at large.

Lets have a full fledged discussion on Chanakya.. from Next Edition..

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