Chalange for India in Forex management

India is an emerging economic hub; Indian trade to world has gone up significantly post WTO, after the BOP crisis in nineties India has managed their foreign exchange quite well. We are going to explore the practices which were opted in the past and the change that government is planning to do in future. And the practices which is opted by the global players to manage their foreign exchange reserve.

Till now, India is using most of their reserve for their BOP requirements we are more concern with liquidity and safety of the Forex reserve. We will explore the opportunity for the use of the Forex reserve for the development of infrastructure project in our country. Infrastructure in

India has been the core problem and great hindrance of our growth .In spite of huge expenditures in the infrastructure by the government country is still having inadequate facilities and blame has been given to the lack of fund with government, at the same time billions of dollar of Forex reserve are kept idle with the government .If part of the reserve will be planted in the infrastructure project it will help to fix the problem, once infrastructure issue will be solved the FDI inflow will increase and it will further increase the Forex reserve in longer period and help in prosperity of the nation.

Diversification by adding more currencies and their proportion in our foreign exchange reserve basket to adjust our reserve with our requirements, because world economy order is dynamic and it has changed a lot after the advent of European Union and their common currency, emergence of Euro zone and better performance of emerging market is also forcing to adopt the changes. Record fall in dollar index also propel the idea of balancing the Forex basket for the countries. World has become the global village and divided into several trade blocks which have their own dynamics, to adjust with these dynamics in changing equation country has to rebalance their policy regarding the Forex management for their sustainable growth in future.

Promoter Holding 75.07% in State Bank of Bikaner & Jaipur

Mumbai, Apr,14: As per the information submitted by the State Bank of Bikaner & Jaipur to stock exchange regarding the share holding pattern of the bank quarter ended December 31, 2010 (Q3) the holding of Foreign Institutional Investor seen down to 1.11 percent from the previous quarter holding of 2.95.The promoter holding increased to 75.07 from 75.00 in previous quarter. Domestic Institutions holding has increased to 4.20 per cent in the Q3 from 2.56 in Q2. However, the other segment including retail shareholding in the share has increased to 19.62 per cent from 19.49 which were reported in Q2. The Bank has reported revenue growth of Rs 12,262.20 million net profit of Rs 1,324.50 million, Earning per Share (EPS) Rs 26.49 and Net Profit Margin percent 10.80 reported in quarter ending December 2010.

Karur Vysya Bank Ltd having 3.51% Promoter Holding

Mumbai, Apr,14: As per the information submitted by the Karur Vysya Bank Ltd to stock exchange regarding the share holding pattern of the bank quarter ended December 31, 2010 (Q3) the holding of Foreign Institutional Investor seen down to 21.43 percent from the previous quarter holding of 21.79.The promoter holding reduced to 3.51 from 3.53 in previous quarter. Domestic Institutions holding has increased to 4.24 per cent in the Q3 from 3.92 in Q2. However, the other segment including retail shareholding in the share has increased to 70.78 per cent from 70.76 which were reported in Q2. The Bank has reported revenue growth of Rs 5,754.90 million net profit of Rs 1,132.20 million, Earning per Share (EPS) Rs 14.86 and Net Profit Margin percent 16.67 reported in quarter ending December 2010.

CRISIL leading Rating Company expects higher interest rates

CRISIL leading Rating Company expects higher interest rates and commodity prices to slow down investment-driven demand in the country, with rising rates moderating retail demand, it said in a statement on Wednesday.

Indian companies' credit quality is peaking and profitability of players in the cement, chemicals, construction, automobile and textile spinning industries may be affected by high input prices, CRISIL said that the External factors, such as surging oil prices due to unrest in West Asia and North Africa and interruption in trade and investments, can have a "large impact on corporate credit quality.CRISIL has modified credit ratio (MCR), an indicator of the relative frequency of upgrades and downgrades, rose for the second year, after plummeting to a decade low in FY09.

However, an improvement in the MCR is likely to be limited, going forward, on higher pressure on profitability and intensifying competition, it said.Increased profitability pressures are expected to continue over the medium-term, it said

World Cup: India run past Indies to meet Aussies

"Smith was taking it away from the Indians as West Indies were placed comfortable at 154 for two in the 31st over but once Zaheer Khan bowled Smith, the Caribbeans lost wickets in a heap.

Harbhajan sent back hard-hitting Keiron Pollard (1) and Yuvraj had Devon Smith (2) stumped by Dhoni. That brought skipper Darren Sammy on to the crease but threw his wicket by running himself out, thanks to a terrible mix up with Sarwan.

Yuvraj struck for the second time when he had Andre Russell (zero) caught by Yusuf Pathan at point.

Zaheer ended all Windies hopes when he scalped Sarwan.

It was Ashwin, playing his first game in the tournament, who handed India its first breakthrough by trapping Edwards with his carrom ball.

The umpire had initially turned down the appeal but the the decision had to be overturned after the Indians asked for a review, which went in their favour."

Source Indian Express