TCS' 600 mn pound deal under fire in UK
SBI prefers rights issue to raise capital: Bhatt
Mar 10, 2010, MUMBAI: Country's largest lender, State Bank of India, would prefer a rights issue to raise funds for business growth rather than diluting Government holding, the bank chairman O P Bhatt said.
"I want the Government to continue to be the major stake holder in SBI...if there is an opportunity to raise capital quickly and efficiently, we would like to do that (rights issue)...it gives us a lot of flexibility in future," Bhatt told reporters here.
Recently, the Government tabled the SBI Act Amendment Bill in the Lok Sabha, which would enable the reduction of state-holding in the bank to 51 per cent from around 59 per cent now.
However, Bhatt indicated that the bank is unlikely to go for the rights issue immediately as it has enough capital and good liquidity position at the moment.
SBI has a surplus liquidity of close to Rs 50,000-crore, against Rs 75,000-crore in December.
"I keep saying that we have a five-year perspective. We do not need capital immediately because our capital adequacy ratio is now around 14 per cent" Bhatt said.
On the merger of State Bank of Indore with the parent, Bhatt said that the proposal needed to be cleared by the Government and Boards of both banks. The entire process may take over a month to get completed.
Rupee ends strong against US Dollar
Wednesday 10 March, 2010: Rupee on Wednesday hit its highest in nearly two months, boosted by stronger regional peers and expectations of robust dollar inflows related to a share sale.
* At 9:14 a.m. the partially convertible rupee INR=IN was at 45.47/48 per dollar, stronger than 45.6250/6350 at close on Tuesday. On Monday the rupee hit a high of 45.38, its strongest since 12th Jan.
* The rupee gained 1.1 percent last week, its best since a 1.9-percent rise in the week to 8th Jan.
* The yen was firm on Wednesday on expectations of a pick up in Japanese repatriation flows before the fiscal year end in March, while the euro and the pound were subdued on fresh worries about Europe's fiscal health.
* Indian shares were trading 0.2 percent higher but trade was choppy.
* Most Asian currencies were stronger compared to the dollar.
Gold recovers moderately on fresh buying, silver also rises
Wednesday 10 March, 2010: Gold prices recovered moderately by Rs 60 per ten grams to Rs 16,735 at the bullion market in Mumbai on Wednesday on emergence of local buying interest driven by firm European advices.
Silver rose sharply due to fresh demand from stockists as well as good industrial support.
Standard gold (99.5 purity) firmed up by Rs 60 per ten grams to close at Rs 16,735 from Tuesday's closing level of Rs 16,675.
Pure gold (99.9 purity) moved up by Rs 65 per ten grams to end at Rs 16,820 as against Rs 16,755 of Tuesday.
Silver ready (.999 fineness) hardened by Rs 310 per kilo to finish at Rs 27,395 from Rs 27,085 previously.
In overseas market, gold edged higher in Europe after euro weakened against dollar on renewed concerns over the fiscal health of the Euro zone.
Spot gold was bid at USD 1,125.50 an ounce in early trade as against USD 1,121.15 late in New York on Tuesday.
US gold futures for April delivery inched up by USD 3.80 to USD 1,126.10 an ounce on Comex division of the NYMEX.
Spot silver was bid at USD 17.36 an ounce as against USD 17.23.
Infosys says increase in outsourcing deals
Mumbai, March 10, 2010: IT major, Infosys Technologies, has witnessed an increase in outsourcing deals as all major markets are back on the recovery track, a top company official said.
"What has changed in the last two quarters is that the markets have improved and deals are coming back. We see more deal-flows," Infosys' CEO and Managing Director, S Gopalakrishnan, told reporters on the sidelines of a CII meet in Mumbai on Wednesday.
As the deal pipeline is improving, the IT major is looking at diversifying its business worldwide
"The recovery is led by the US and other emerging markets such as India and China. The US contributes 60 per cent of the total business. Clearly this is having more impact on the Indian IT services. Proactively we are investing more on diversifying our business," he said.
Presently, the company's revenue distribution is 60 per cent from North America, 25 per cent from Europe and the balance from other parts of the world.
"In 5-years from now, we see the revenue distribution at 40 per cent from North America, 40 per cent from Europe and 20 per cent from rest of the world," Gopalakrishnan said.
TCS' 600 mn pound deal under fire in UK
Wednesday, March 10, 2010, London: The proposed multi-year contract between TCS and the UK government for administering its employment savings trust has evoked adverse comments from some British websites, one of which even suggested the deal could be reviewed if there is a change of guard in the government after the May elections.
The British's Personal Accounts Delivery Authority (PADA) earlier this month had said it would sign a contract with Tata Consultancy Services to administer the National Employment Savings Trust (NEST).
The Personal Accounts Delivery Authority is a non-departmental public body in Britain.
According to the website www.moneymarketing.co.uk, the Conservatives have attacked the decision to sign the contract for NEST administration before the general elections.
The website quoted Conservative's shadow pensions minister Nigel Waterson as saying, "He is amazed that contract would be signed so quickly and stressed that this would not inhibit a Tory review of the scheme if they get into power.”
"We wish to make it clear that our review of NEST, should we win the elections, will not be constrained in any way by any contract signed by this government in its dying days," Waterson was quoted as saying in the report.
When contacted, TCS declined to comment on the issue. Another website, www.citywire.co.uk, has reported that the "ahead of schedule" contract between PADA and TCS will cost the "taxpayer 25 million pounds, even if the next government axes the NEST."
According to the report, TCS has been contracted to run NEST at a cost of about 600 million pounds. The www.citywire.co.uk in a report has quoted Waterson as saying that he was told about the TCS contract just hours before it was announced.
"We find the fact the government is pushing on without any consensus just weeks before a general election is just extraordinary," he had said.
The contract would be divided into two stages and runs for ten years.
