The Hindu Business Line : Tuesday, March 01, 2005

Law soon to allow banks to issue pref shares
IN a move that would go a long way in helping banks to meet their future capital requirements under tightened norms, the Finance Minister, Mr P. Chidambaram, today said that he would move legislative amendments to allow them to issue preference ... More

Bankers welcome nod for preference shares, seek clarity
BANKS have welcomed the Union Budget proposal to allow them to raise capital through preference shares in the Union Budget 2005-06. According to the Budget, banking companies have been allowed to issue preference shares, since preference share ... More

BUDGET

Banking sector: Reform roadmap
There are many banks in India but none among the top twenty in the world. Our largest bank, the State Bank of India, ranks 82 in terms of business. It is universally acknowledged that the key drivers of the banking sector in the future will be ... More

Cash withdrawals will leave a trail
THE NCMP requires the Government to introduce special schemes to unearth black money and assets. I am obliged to carry out the mandate, but without giving undeserved relief or an amnesty. I am concerned about large cash transactions, ... More

London, Tokyo watch out here comes Mumbai
WHEN I look at the map of the world, I am struck by the strategic location of Mumbai. It lies almost midway between London and Tokyo, two nerve centres of world finance. Mumbai is also home to the National Stock Exchange and the Bombay Stock ... More

Drawing on reforms
BANKING is fast emerging as the Finance Minister's pet sector. On Monday, he showed his penchant for forcing the industry through structural changes. He seems intent on unleashing the three C's on the industry — Competition, Consolidation ... More

`Tax on cash withdrawals an anti-evasion step'
DESCRIBING his move to impose a 0.1-per cent tax on cash withdrawals of Rs 10,000 a day from bank as "a small part of the Budget", Mr Chidambaram said it was a purely an anti-tax evasion measure, not aimed at penalising account holders. "I am ... More

FOREX

Rupee tad higher; bonds weaker
MUMBAI: The rupee closed stronger at 43.68 against the dollar on Monday, a day when attention was focused on the Union Budget. The rupee had closed at 43.72/73 on Friday. The local currency opened at 43.67/70 and rose to a high of 43.62 in ... More

INSURANCE

`No concrete step to hike FDI limit' — Insurers welcome I-T changes
While the introduction of income tax deduction on Rs 1 lakh on account of savings was welcomed, no concrete move to raise foreign direct investment (FDI) in the insurance sector was bemoaned. Mr Sunil Mehta, Country Head & Chief Executive, ... More

Time to rejoice for insurance sector
THE flexibility given to investors in the Budget to decide on the proportion of asset allocation across instruments must certainly be music to the ears of players in the insurance sector. For quite a while now, insurers had been demanding an ... More

TAXATION

Experts see red over banking cash transaction tax
TAX professionals, while welcoming the steps to rationalise tax treatment of savings in the Budget, are seeing red over the proposed Banking Cash Transaction Tax (BCTT) to check tax evasion, under which tax at the rate of 0.1 per cent of the ... More

HOUSING FINANCE

Good for housing sector, says Mistry
THOUGH there is nothing very specific to the housing sector in the Budget, housing continues to get the benefits that it did, says Mr Keki Mistry, Managing Director, HDFC Ltd. Also, although the rebate under Section 88 for repayment of housing ... More

DEBT MARKET

Centre's market borrowings may rise 68 pc next fiscal
THE Centre's gross market borrowings during 2005-06 are budgeted to grow by 68 per cent, to touch a record Rs 178,466 crore. This is against the revised figure of Rs 106,395 crore in the current fiscal. The main reason for the borrowings going ... More

Govt borrowings may hit bonds
THE net borrowings of the Government, as presented in the Union Budget 2005-06, are slightly higher than expected, due to the increased allocations made for social spending. This may have an adverse impact on the bond market, which reacted by ... More

MERGERS & ACQUISITIONS

Stake in private banks — Ministry plans to remove 10 pc cap on voting rights
THE Finance Ministry has proposed lifting the 10 per cent cap on voting rights to facilitate foreign banks acquire majority stake in Indian private banks flagged for restructuring by the RBI. In the first phase (March 2005 to March 2009) of ... More

Comments & Letters to the Editor to: bleditor@thehindu.co.in
Subscribe to: Business Line

Pick a Winner Stock Market Contest

Top Stories
A recast of personal taxation

Real estate sector cries foul

Tax savings: Choices galore

Market players see no impact of STT

Law soon to allow banks to issue pref shares

Centre's market borrowings may rise 68 pc next fiscal

Corporate income-tax — A mix of lower tax shelters & rates

In Focus

BHEL Disinvestment

The Yuan Revaluation