News
- November 2008
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Chidambaram to inaugurate economic editors’ meet
24-Nov-2008 Source: Business Line, New Delhi
New Delhi, Nov. 23 The Finance Minister, Mr P. Chidambaram, will inaugurate the three-day annual economic editors’ conference in the capital on Monday.
About 300 editors and financial writers from all over the country are expected to attend the conference.
The Indian economy, even though largely domestic driven, is in the midst of a slowdown and facing the ripples of the global economic crisis. The conference will see economic editors’ and journalists interacting with the Ministers and senior officers of key economic and infrastructure ministries.
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Public sector banks pillars of financial sector: Chidambaram
23-Nov-2008 Source: Hindu, Chennai
CHENNAI: Public sector banks in the country are among the strongest pillars of the world banking industry, P. Chidambaram, Union Finance Minister, said on Saturday.
This was due to strong traditions built into the Indian institutions which continued after nationalisation of banks. “Our banks are today among the strongest pillars of Indian financial sector,” he said, participating here in the centenary celebration of M.Ct.M. Chidambaram Chettyar (1908-1954) who founded the Indian Overseas Bank in 1936.
Emphasising how Chidambaram Chettyar, known as M.Ct., gave importance to the system of inspection of banks, the Union Minister said banks in the United States failed not because the economy in that country failed but because of poor regulation and almost non-existence of inspection system .
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Government monitoring crisis 24x7, says Chidambaram
20-Nov-2008 Source: Hindu
NEW DELHI: Finance Minister P. Chidambaram on Tuesday assured captains of industry that the government, along with the Reserve Bank of India (RBI), was monitoring the situation "24x7" and would take appropriate steps, whenever required, to tackle the "spill-over effects" of the global financial meltdown.
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FM calls for price cuts, CEOs divided
20-Nov-2008 Source: Times of India
NEW DELHI: Finance minister P Chidambaram on Tuesday called on sectors like housing, automobiles, hotels and airlines to cut prices to boost demand and beat the slowdown. (Watch )
The auto sector ruled this out as unrealistic in the current situation, while airlines - looking for a lifeline from the government - seemed more receptive to the suggestion. Real estate companies, however, remained noncommittal.
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Cut prices, Chidambaram tells industry
19-Nov-2008 Source: Hindu
NEW DELHI: Union Finance Minister P. Chidambaram on Tuesday advised various sections of industry to reduce prices to induce consumer demand. At the same time, he assured India Inc. that the government was alive to its problems in the wake of the global financial crisis and would consider excise duty cuts for sectors severely affected by the slowdown.
Addressing corporate honchos and business leaders at the India Economic Summit here by the World Economic Forum and the Confederation of Indian Industry, Mr. Chidambaram said: “Hotels must cut tariffs, airlines must cut prices; real estate must cut rates of apartments and homes they sell; car makers and two-wheeler makers must cut prices. Any sector faces problems, I am open to examining suggestions on cut in excise duty rates.
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FM assures more loans for real estate
15-Nov-2008 Source: Economic Times, New Delhi
NEW DELHI: Finance minister P Chidambaram assured real estate developers that government will impress upon banks to accelerate lending to realty, which is facing one of the worst slowdown in the recent times. A delegation of builders under the Confederation of Real Estate developers' Association of India (CREDAI), met Chidambaram on Wednesday to complain against banks' reluctance to disburse loans to the real estate companies.
A source, who was present in the meeting, said the government accepted that real estate is an engine of growth. At a time when the economy is facing a threat of slowdown, the sector could be used to revive it. Chidambaram, it is learnt, told the delegation that the government will not only help infusing liquidity in the system, but will also work to bring down the interest rates.
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Standards global, regulation national: FM
14-Nov-2008 Source: Hindustan Times, New Delhi
New global regulatory standards, prudential norms, greater surveillance mechanism and reform of the IMF are among the key points that the Indian contingent will raise on November 15 at the Summit on Financial Markets and the World Economy in Washington DC, Finance Minister P Chidambaram told reporters.
Most important among these, in terms of having a widespread impact, will be the setting up of common regulatory and accounting standards across the globe or at least for G20 nations. "We must have convergence of accounting standards," Chidambaram said. 'Not taking an election-constricted view': FM
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Home loan rates set to drop
09-Nov-2008 Source: Economic Times, New Delhi
"The expectation of a fall in interest rates always brings hope for borrowers and investors. The good news has been flowing in continuously on the interest front, and the rate cuts announced by banks have even exceeded expectations.
Many banks have already started reversing their lending rates and many have announced a cut of as much as 0.75 percent in their benchmark rate.
This has been slightly higher than the expectations which many had. Prior to the Finance Minister, P Chidambaram's meeting with bankers, the general feeling was that banks might resort to a cut in the region of 0.25-0.5 per cent. The fall in rate has been a result of many factors
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Obama victory positive development: India Inc
06-Nov-2008 Source: Business Line, New Delhi
New Delhi, Nov. 5 The victory of the Democratic candidate, Mr Barack Obama as the 44th President of the US is being viewed as a positive development for Indian trade and business.The National President of the Indo-American Chamber of Commerce, Mr S.K. Jain, said that Indo-US relations can only go forward. “The new President is a very open person and easy to do business with. Speaking as an individual and not for the Government, the Union Finance Minister, Mr P. Chidambaram, said a comment here or there on outsourcing should not bother India. “For once Mr Obama is in office he will realise that in this interconnected world countries have to work together. The US as the world’s largest economy and India as the world’s largest free-market democracy have to work together,” Mr Chidambaram said
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3G spectrum auction as scheduled
06-Nov-2008 Source: Hindu, Chennai
CHENNAI: The auction of spectrum for providing third generation (3G) cellphone services will be held as scheduled, it was decided at a meeting Prime Minister Manmohan Singh held with Finance Minister P. Chidambaram and Communications and Information Technology Minister A. Raja in New Delhi on Tuesday.The meeting decided that the auction should go ahead since it was already delayed for long.
The perceived loss over the auction should not result in the country losing out on time to adopt newer technologies. The gains for the country would be much more in the long term, it was reasoned.
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FM shrugs off Obama outsourcing views
06-Nov-2008 Source: Financial Express, New Delhi
Finance minister P Chidambaram on Wednesday said the election of Democrat candidate Barack Obama as President of the United States would strengthen India-US relations and his comments on outsourcing should not bother India. Obama was very vocal on his support for keeping jobs inside the US. In his campaign for the presidential election he had promised tax breaks to firms that create employment within the country and said that sops would be cut for those that shipped the jobs to other countries
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Banks to cut loan rates by 0.5-0.75%
06-Nov-2008 Source: Times of India, New Delhi
NEW DELHI: Interest rates on bank loans are all set to go down by 0.5 to 0.75 percentage points. That was the clear signal sent out by public sector banks soon after their chiefs met finance minister P Chidambaram here on Tuesday. With private sector bank chiefs also meeting the FM on Wednesday, rate cuts are unlikely to remain confined to state-owned banks.
On the flip side, banks are also likely to reduce the interest they pay on deposits by about half a percentage point, to make sure their profitability is not eroded.
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Canara Bank reduces interest rates
06-Nov-2008 Source: Economic Times, Banglore
BANGALORE: Public sector lender Canara Bank on Wednesday announced slashing its benchmark prime lending rates by 75 basis points, a day after Finance
Minister P Chidambaram asked the state-run banks to consider reducing interest rates.
The bank would reduce home and auto loan rates by 25 basis points, a spokesperson of the bank said here.
After the cut the prime lending rates (PLR) would stand at 13.25 per cent down from 14 per cent with effect from November 10 .
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PSU banks tune in to FM, cut prime rates
06-Nov-2008 Source: Economic Times, Mumbai
MUMBAI: Large public sector banks have decided to lower their prime lending rates (PLRs) by 0.75%, in line with the commitment made to Union finance minister P Chidambaram on Tuesday.
Bank of India, Canara Bank, Indian Overseas Bank and Syndicate Bank have decided to lower lending rates from 14% to 13.25%. In case of IOB, the asset liability committee has cleared the proposal and approval from the board of directors is expected within a few days.
Among other banks, Union Bank of India and Punjab National Bank took the lead in cutting PLR by 50 basis point to 13.5%, a few days before the finance minister met bank chiefs.
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Sensex rallies as PSU banks agree on rate cut
05-Nov-2008 Source: Economic Times, Mumbai
MUMBAI: Indian equities extended the pull-back rally on Tuesday, outperforming Asian peers, as sentiments turned bullish in realty, infrastructure and banking sectors after public sector banks agreed on cut in interest rates.
In a meeting with the chiefs of state-owned banks, Finance Minister P Chidambaram hinted that after RBI's initiative to cut rates it was their turn to reciprocate to keep the realty and infrastructure growth ticking.
In the meeting, PSU banks reached a consensus to cut interest rates on advances by 75 basis points and on deposits by 50 bps.
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PSBs toe the line, to reduce lending rates next week.
05-Nov-2008 Source: Financial Express, New Delhi
Consumers and companies will finally get some respite from costly credit, with most public sectors banks ready to pare lending rates. At a nearly five-hour review with finance minister P Chidambaram on Tuesday, state-owned bank chiefs committed to cut prime lending rates (PLRs) by up to 75 basis points. PLRs at most nationalised banks are currently at around 13.5%. State Bank of India, Punjab National Bank, Bank of Baroda, Indian Bank, Central Bank of India, Uco Bank and Bank of Maharashtra confirmed they would move to cut rates, some as early as next week. Chidambaram has asked banks to submit a credit delivery report every fortnight to ensure that easy liquidity and lower rates actually translate into improved lending. "Finance secretary Arun Ramanathan and a deputy governor of the Reserve Bank of India would meet the private sector banks on Wednesday," Chidambaram said after the meeting. Indications are that private sector banks would match any rate cuts by their public sector peers.
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FM to meet bank chiefs
03-Nov-2008 Source: Hindustan Times, New Delhi
Finance Minister P Chidambaram will meet the heads of public sector banks on Tuesday to discuss the liquidity situation in the economy. Though it is a routine affair, the meet is significant in the context of the current global and domestic economic scenario.
The Reserve Bank of India has already taken several monetary measures to ease the liquidity situation and facilitate the lending exercise, interest rates are yet to come down. The issue will feature prominently in Tuesday's meeting, sources said
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Micro insurance product launched
03-Nov-2008 Source: Hindu, Chennai
SIVAGANGA: Union Finance Minister, P. Chidambaram, on Sunday launched IFFCO-TOKIO’s Janata Bima Yojna, a micro insurance product, in the State.
Speaking at a function held at Kandanur, near Karaikudi on Sunday, he said Rs.20,000 was assured to the policyholders a year by paying a premium of just Rs.100. It [premium] was just 25 paise a day. It would suit all, including the poor.
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FM to meet chiefs of PSU banks on Tuesday
02-Nov-2008 Source: Hindustan Times, New Delhi
Finance Minister P Chidambaram will meet heads of public sector banks on Tuesday in the backdrop of series of measures taken by the Reserve Bank to ease money supply.
It is expected that the Finance Minister would review half yearly performance of banks and implementation of debt waiver scheme and interest rate scenario, banking sources said
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Cabinet clears way for 49% FDI in insurance
01-Nov-2008 Source: Economic Times, New Delhi
NEW DELHI: After many years of debate, the government has decided to increase the foreign direct investment (FDI) limit in insurance firms from 26% to 49%. The government will now introduce a bill in Parliament to effect this change. The government, however, conceded that the bill may not be passed by the current Parliament for want of time.
Finance minister P Chidambaram on Friday announced that the Union Cabinet, which met last night, had decided that the government would introduce a comprehensive amendment bill.
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Economy’s in green, and no pink slips: FM
01-Nov-2008 Source: Economic Times, New Delhi
NEW DELHI: Finance minister P Chidambaram has said the country’s growth rate forecast of 7.5% will not be revised downwards even if the economic scenario in the US and Europe worsens. "The global slowdown has been factored into RBI’s 2008-09 growth forecast of 7.5%," he said while talking to reporters in the Capital on Friday.
Expressing confidence in the fundamentals of the country’s economy, Mr Chidambaram said that India is in a better position to weather the financial turmoil than many other emerging economies.
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UCO Bank to rejig capital
01-Nov-2008 Source: Hindu, New Delhi
NEW DELHI: The Central Government on Friday announced capital restructuring of Kolkata-based UCO Bank by converting Rs. 250-crore equity into preference shares that will enable the bank to raise funds from the market.
"The reduction in the pure equity capital will improve the EPS and other financial so that the bank will have more attractive capital structure," Finance Minister P. Chidambaram told reporters while briefing on Cabinet decisions taken on Thursday.
If and when it approached the capital market it would have attractive capital structure and it could raise Tier-I capital, he said
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- October 2008
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Right time to scrap export duty on some iron,steel items:FM
31-Oct-2008 Source: Hindu, New Delhi
New Delhi (PTI): Finance Minister P Chidambaram today said the decision to scrap export duty on certain iron and steel products was taken to ensure that their exports remain competitive in the wake of falling international prices.
"International prices have fallen. In order to ensure that value-added products continue to be exported, taking into account the international prices, we think this is the appropriate time to remove export duty," Chidambaram told reporters here.
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Experts discuss fallout of global crisis
31-Oct-2008 Source: Hindu, New Delhi
NEW DELHI: Finance Minister P. Chidambaram on Wednesday convened a meeting with top economic experts to discuss the implications of the global financial meltdown and draw up India’s stand on the crisis at the crucial G-20 Summit called by the U.S. next month.
Economic think tank ICRIER Director Rajiv Kumar, who was one of the participants, told newspersons that the agenda of the meeting was the summit that U.S. President George Bush has called on November 15. "We are discussing the position that India will take at the summit. There will be another meeting. A paper is being prepared by the Ministry of Finance [in this regard]," he said.
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Chidambaram lays stress on importance of higher studies
27-Oct-2008 Source: Hindu
SIVAGANGA: Union Finance Minister P. Chidambaram has called upon the people to send their children for higher studies, including professional courses.
Speaking at a convocation ceremony held in a college at Ilayangudi near here on Sunday, he said most of the students who appeared for higher secondary examinations did not pursue higher studies. This percentage was very low in the country when compared to a few developed countries. Being literate was not enough. All students should go beyond high secondary school level to reap the benefit of education.
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Ways in which expenditure can be meet
26-Oct-2008 Source: Economic Times
NEW DELHI: Finance minister P Chidambaram has rejected the Opposition charges of making the Budget irrelevant through a supplementary demand for an amount as large as Rs 1,05,630 crore.
He dared the Opposition to oppose any of the heads that had occasioned the additional expenditure - oil subsidy, fertiliser subsidy, sixth pay commission award, national rural employment guarantee scheme - and expressed confidence of finding the fiscal space to mop up additional revenues without relying entirely on borrowings to meet the expenditure.
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Cut tax rates on property transfer: Chidambaram
26-Oct-2008 Source: The Hindu
The Finance Minister, P Chidambaram called upon states to reduce tax rates on transfer of property to enhance their tax revenue from this sector. "I think we must look at taxes on transfer of property in India, reduce the tax rates, reduce the transaction cost and therefore that is a big source of revenue," Chidambaram said at a USAID function here.
He said a large number of transactions in property went untaxed since the tax rates and the transaction costs are so high.
"As my friend just said there will never be a real estate asset bubble in India because the (revenue from) taxes are so depressed to the real price," he added.
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Reforms still on agenda: govt.
25-Oct-2008 Source: Financial Express
The global turmoil will not dampen the Centre's plans to push long-pending reforms in banking, insurance and pension. Responding to a starred question by Congress MP Bapu Hari Chaure and CPI (M) MP Santasri Chatterjee in Lok Sabha on Friday, Finance minister P Chidambaram said, "There is no change in government's stance regarding banking, insurance and pension reforms." Chaure and Chatterjee had sought to know if the government had decided to defer economic reforms in the country in view of the financial crisis that began in the US and has spread to the rest of the world. The two MPs also asked if the Centre would reconsider its specific plans for reforms in banking, insurance and pension sectors.
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Credit policy on expected lines: FM
25-Oct-2008 Source: Financial Express
NEW DELHI: Union Finance Minister P. Chidambaram on Friday maintained that the credit policy unveiled by the Reserve Bank of India (RBI) was “on expected lines” even as the stock markets gave a ‘thumbs down’ to the status quo in key rates and plunged to their lowest depths in recent years.
Hailing the RBI’s mid-term review of monetary policy and noting that the apex bank would take radical steps, if necessary, to tackle the financial crisis in the emerging situation, Mr. Chidambaram said: [The] RBI will continue to deploy both conventional and unconventional tools. We cannot rely only on conventional measures but we will have to adopt unconventional or unorthodox measures
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Desist from panic sales of shares: FM
24-Oct-2008 Source: The Hindu
NEW DELHI: Finance Minister P. Chidambaram on Thursday advised stock market investors to take ‘informed’ decisions and desist from panic sales while hoping that banks would resume brisk lending now as there was adequate liquidity in the monetary system. Interacting with the media here on the various steps taken so far to address the credit crunch, Mr. Chidambaram said: "If you go by the reverse repo, I think there is adequate liquidity. The point now is banks should not park excess funds with [the] Reserve Bank. They have been advised to lend."
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Banks have Rs 27,300cr derivatives exposure: FM
23-Oct-2008 Source: Economic Times
NEW DELHI: Government on Tuesday said the forex derivative losses do not pose any systemic issue and the marked-tomarket (MTM) exposure of the banks on account of these transactions with companies stood at around Rs 27,300 crore. A number of companies lost huge amount of money in the foreign exchange derivatives and had complained to RBI and finance ministry on this issue.
FM P Chidambaram told Rajya Sabha that the exchange rate movement of rupee is closely monitored and RBI intervenes whenever it is required . He said depreciation of rupee against dollar is mainly due to lower levels of net capital inflows due to turmoil in global financial markets, of which net outflows on account of FIIs is a major component. Rupee has depreciated by over 20% in the last six months to Rs 49 per dollar on Tuesday
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Capital dose to improve health of seven public sector banks
23-Oct-2008 Source: Economic Times
NEW DELHI: Finance minister P Chidambaram on Wednesday said the government will inject fresh capital into seven public sector banks to improve their financial health and enable them achieve a capital adequacy ratio of over 12%.
"Today I announce with the Prime Minister's permission that banks which have capital to risk (weighted) asset ratio (CRAR) of below 12%, well above 8% Basel norm, well above 9% RBI stipulated norm... we will help them recapitalise and bring them (CRAR) above 12%," Mr Chidambaram said while replying to a discussion on supplementary demands for grants in Rajya Sabha.
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Govt may miss fiscal, revenue deficit targets this fiscal
22-Oct-2008 Source: Economic times
NEW DELHI: For the first time, the govt today admitted that it may miss the budget targets for fiscal and revenue deficits for 2008-09 as global financial crisis is exerting pressure.
"Thanks to the global financial crisis, which is exerting pressures on all economies, it is likely that we may overshoot budget targets (for fiscal and revenue deficits)," Finance Minister P Chidambaram said at USAID function here.
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Centre may miss fiscal deficit target: FM 23-Oct-2008 Source: Hindu
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No systemic issue on forex derivative losses, assures FM
22-Oct-2008 Source: Economic Times
NEW DELHI: The government on Tuesday ruled out a systemic issue on account of forex derivative losses that stood at Rs 27,300 crore, and said a RBI-Sebi technical committee is closely monitoring the developments in the global financial markets and its impact on domestic markets.""RBI has come to the conclusion that forex derivative losses do not pose a systemic issue,"" finance minister P Chidambaram told Rajya Sabha in a written reply.
RBI carried out a special scrutiny in select banks active in derivative transactions and held discussions with CEOs of 22 banks that were seen active in the business to assess the systemic impact before arriving at the conclusion.
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FM discusses liquidity situation with bankers
22-Oct-2008 Source: Hindu
New Delhi (PTI): Finance Minister P Chidambaram held a meeting with senior bankers last evening in the backdrop of easing liquidity situation following a slew of measures taken by both RBI and the government. "The meeting reviewed situation in the light of easing liquidity situation," Punjab National Bank Chairman and Managing Director K C Chakrabarty said. Credit delivery to productive sector was also discussed during the meeting, he said. The meeting was also attended by State Bank of India Chairman O P Bhatt and Indian Banks Association and Bank of India Chairman T S Narayanaswami
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Govt to recapitalise 7 PSU Banks: FM
22-Oct-2008 Source: Hindustan Times
Finance Minister P Chidambaram on Wednesday said government will inject fresh capital in seven public sector banks to improve their financial health and help them achieve a capital adequacy ratio of over 12 per cent. "Today I announce with the Prime Minister's permission that banks which have CRAR of below 12 per cent, well above 8 per cent Basel norm, well above 9 per cent RBI stipulated norm... We will help them recapitalise and bring them (CRAR) above 12 per cent," Chidambaram said while replying on a discussion on Supplementary Demands for Grants in Rajya Sabha.
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FM sees economic growth at around 8%
21-Oct-2008 Source: Economic Times
NEW DELHI: Finance minister P Chidambaram on Monday exuded confidence that the country's economy would grow at about 8% in the current fiscal despite the global financial crisis. He, however, said the cash crunch prevailing in the world would affect the country's financial markets too."Credit crunch that the world faces has also impacted us. We have taken a series of measures to infuse greater liquidity and to restart the process of credit," he said at a function to mark 50 years of Indo-German bilateral development cooperation. Mr Chidambaram said the country has good regulations and regulators.
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FM sees economic growth at around 8%
21-Oct-2008 Source: Economic Times
NEW DELHI: Finance minister P Chidambaram on Monday exuded confidence that the country’s economy would grow at about 8% in the current fiscal despite the global financial crisis. He, however, said the cash crunch prevailing in the world would affect the country’s financial markets too. "Credit crunch that the world faces has also impacted us. We have taken a series of measures to infuse greater liquidity and to restart the process of credit," he said at a function to mark 50 years of Indo-German bilateral development cooperation. Mr Chidambaram said the country has good regulations and regulators.
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Another step to improve liquidity: Chidambaram
21-Oct-2008 Source: Business Line
New Delhi, Oct. 20 The Finance Minister, Mr P. Chidambaram, on Monday said that the 100 basis point cut in repo rate was another measure in the series of steps announced since October 6 to improve liquidity in the banking system.
"It (repo rate cut) is consistent with our objective of moderating inflation as well as ensuring satisfactory growth. The cut in repo rate will be beneficial to many sections of people, especially borrowers as well as investors," Mr Chidambaram told reporters soon after the RBI’s announcement.
He also expressed hope that the repo rate cut to 8 per cent would enthuse investors to take forward their investment proposals. Since October 6, the RBI has reduced cash reserve ratio by 250 basis points, leading to infusion of about Rs 1 lakh crore into the banking system
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Exposure of banks to Lehman Brothers US$ 336 mn: FM
21-Oct-2008 Source: Hindustan Times
The government on Monday said banks have exposure of US$ 336 million in US-based investment bank Lehman Brothers, which has filed for bankruptcy.
The banks' exposure to Lehman Brothers is US$ 336 million (Rs 1,580 crore) as on September 30, Finance Minister P Chidambaram told Lok Sabha in a written reply. The exposure mainly consisted of investments in floating rate notes, nastro balances, bank guarantees, forex exposures, etc, he said.
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FM's subsidy bill shows extra Rs 1L cr
21-Oct-2008 Source: Economic Times
NEW DELHI: FInance minister P Chidambaram on Monday sought Parliament approval for an additional spend of Rs 1,06,113 crore ($21.7 billion) for the fiscal year to fund the food and fertiliser subsidy bills as well as provide for the farm loan waiver scheme. This is the net additional outgo from the government for the fiscal year. The gross additional spending stands at Rs 2,37,000 crore, which would be offset to a large extent by savings of various ministries. According to analysts, the additional spending would lead to bigger borrowings, putting pressure on government finances and widening the fiscal deficit to more than the Budget target of 2.5% of gross domestic product. However, this is likely to add liquidity in the system and generate economic activity.
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India hit by ripple effects of global financial crisis: FM
21-Oct-2008 Source: Hindu
NEW DELHI: Finance Minister P. Chidambaram on Monday maintained that India was only experiencing the ripple effects of the global financial crisis without any direct impact on its economy which would succeed in growing by close to eight per cent during the current fiscal.Speaking at a function to mark the completion of 50 years of Indo-German bilateral development cooperation here, he pointed out that even the most pessimistic estimates have projected a growth rate of not less than seven per cent. "But I am confident that the economy will grow between seven and eight per cent," he said.
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Indo-German cooperation strategy
20-Oct-2008 Source: Business Line
Astrategy paper to further Indo-German development cooperation will be released on Monday on the occasion of celebration of 50 years of this cooperation. The strategy paper will be released jointly by the Union Finance Minister, Mr P. Chidambaram, and the visiting German Federal Minister for Economic Cooperation and Development, Mrs Heidemarie Wiecxorek-zeul. On Monday, both ministers will participate in the celebration of 50 years of Indo-German development cooperation. This cooperation started in 1958, with Rourkela steel plant. Germany is the seventh largest foreign investor in India with cumulative FDI inflow of $2.26 billion.
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Markets this week
18-Oct-2008 Source: Business Line
The Sensex bounced back on Monday on the back of positive global cues and heavy short covering as governments worldwide stepped up efforts to enhance liquidity in the financial markets. The Finance Minister, Mr P. Chidambaram's promise of more measures to infuse liquidity coupled with his advice that there was no reason to act in haste or to give room for panic boosted the markets.The Sensex surged 7.42 per cent from its previous close, gaining 781 points to end the day at 11,309. The Nifty gained 6.42 per cent, closing at 3,490.70.
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MoU signed
17-Oct-2008 Source: Hindu
Bangalore: The Credit Guarantee Fund Trust for micro and small enterprises signed a memorandum of understanding with Canara Bank on Wednesday. This will bring the bank under the 50 per cent guarantee cover for credit advanced between Rs. 50 lakh and Rs. 1 crore. The participating banks bear the remaining 50 per cent. Trust’s Chief Executive Officer O.S. Vinod, said Union Finance Minister P. Chidambaram’s suggestion that the average size of loans guaranteed should average Rs. 5.5 to Rs. 10 lakh, was being implemented
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Liquidity panel may ask for further easing of ECB norms
17-Oct-2008 Source: Economic Times
NEW DELHI: The high-powered Committee on Liquidity is likely to submit its report to Finance Minister P Chidambaram next week suggesting further rel
axation in norms for raising overseas capital. The panel headed by Finance Secretary Arun Ramanathan has mulled over different options for easing pressure on the domestic money market in the wake of difficult financial scenario.
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Rupee weak, yields dip on liquidity rush
16-Oct-2008 Source: Economic Times
MUMBAI: Bond yields dipped on Wednesday, as market participants pinned hopes on further liquidity-easing measures by the Reserve Bank of India (RBI).
Yields on the 10-year benchmark bond, the 8.24% bond maturing in 2018, ended the day at 7.91%, dipping from its previous close of 7.94%. After market hours on Wednesday, finance minister P Chidambaram announced that the government would immediately inject Rs 25,000 crore into the banking system, and that the foreign investment in corporate debt has been doubled to $6 billion. This was followed by RBI announcing a one percentage point cut in CRR for banks, which will effectively inject Rs 33,000 crore into the banking system. However, RBI also announced that it will sell Rs 10,000 crore of two dated securities on Monday, October 20
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FII ceiling on corporate bonds
16-Oct-2008 Source: Hindustan Times
Finance Minister P Chidambaram, moving in a pincer attack with the Reserve Bank of India (RBI) to ward off an economic slowdown, on Wednesday doubled the ceiling on foreign institutional investor (FII) investment in corporate bonds to $6 billion, opening up a new avenue to strengthen resources to sustain growth and investment in the economy.
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Banks, Nabard to get first instalment of farm debt waiver
16-Oct-2008 Source: Business Line
New Delhi, Oct. 15 The Finance Minister, Mr P. Chidambaram, on Wednesday announced that the Reserve Bank of India would provide temporary liquidity support of Rs 25,000 crore to commercial banks and Nabard against the farm debt waiver’s first instalment reimbursement monies due to them from the Government on November 1.
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FM takes more steps to combat crisis; inject additional cash
16-Oct-2008 Source: Business Line
NEW DELHI: Continuing the fight against the ripple effects of the global financial meltdown, the Finance Minister, Mr P Chidambaram on Wednesday announced more steps to inject cash into the system and strengthen the banking sector, while doubling FIIs in vestment limit in the corporate bond market.
"At the request of government, RBI has agreed to provide a sum of Rs 25,000 crore to lending institutions immediately (against the farm debt waiver scheme)," he said in a statement minutes after the stock market closed with losses of nearly 700 points, reversing the two-day positive trend.
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Reserve Bank to announce more steps for liquidity: Chidambaram
15-Oct-2008 Source: Economic Times
NEW DELHI: Reserve Bank of India Governor D Subbarao is expected to announce more measures to ease the liquidity conditions in the economy after a review meeting with Prime Minister Manmohan Singh late Tuesday.
Finance Minister P Chidambaram, who was also present at the meeting, told reporters here Wednesday that it was also agreed at the meeting that credit to borrowers must be ensured at least to the extent of sanctioned amounts.
"The RBI governor is on his way to Mumbai and will work out the details of the measures agreed upon. I expect to be able to make a statement later in the afternoon," the finance minister said
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Banks to get Rs 25k cr for farm loan write-offs
15-Oct-2008 Source: Times of India
NEW DELHI: Finance minister P Chidambaram on Monday promised fresh measures to boost liquidity amid strong indications of a cut in the repo rate by at least half a percentage point, relaxation of the statutory liquidity ratio (SLR) by around 2 percentage points and immediate provision of Rs 25,000 crore to banks to compensate for agricultural loan write-offs.
Even as the finance minister held a press conference to soothe sentiment just before trading started on bourses, his officials were giving final touches to the package, which may soon see the RBI opening a window for immediately reimbursing banks the amount they lost because of the agricultural loan waiver. The mechanism will make cash available to the banks before Parliament, which reconvenes on Friday, gives its approval
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More measures in works to inject liquidity: PC
14-Oct-2008 Source: Economic Times
NEW DELHI: The high-level liquidity panel on Monday closely examined a slew of options including cuts in cash reserve ratio (CRR), statutory liquidity ratio (SLR), government securities or gold, and interest rate cut to tide over the liquidity crisis.
Innovative measures taken in other countries like providing guarantees to deposits and borrowings of banks was also discussed by the panel chaired by finance secretary Arun Ramanathan. Earlier in the day, finance minister P Chidambaram also promised more measures to infuse liquidity into the system.
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Banks in limelight; ICICI Bank surges 15%
14-Oct-2008 Source: Economic Times
MUMBAI: Banking stocks fronted the rally Monday pushing the BSE Bankex up 8 per cent after the central bank cut the cash reserve ratio by a hefty 150 basis points to 7.5 per cent, releasing Rs 60,000 into the banking system.
Addressing a press meet, finance minister P Chidambaram said that the government, the central bank and the stock market regulator were coordinating on an hourly basis regarding the fallout of the global financial crisis on the Indian market.
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Sensex above 11,000, ICICI Bank up 20%
14-Oct-2008 Source: Economic Times
MUMBAI: Equities gained momentum Monday as bulls returned with a bang on assuring comments from the Finance Minister P Chidambaram and positive cues from Asian markets. Heavy buying in index-heavyweight ICICI Bank pushed benchmarks higher.
The finance minister said liquidity was the main problem and it will be addressed both with fiscal and monetary measures. He assured that Indian economy was growing at a satisfactory pace
At 11:22 am, Bombay Stock Exchange's Sensex was at 11,029.28, up 501.43 points or 4.76 per cent. The 30-share index touched an intra-day high of 11,029.28 and low of 10,817.68.
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Mkt recover on FM comments, positive global cues
14-Oct-2008 Source: Economic Times
MUMBAI: Bulls staged a strong comeback on Monday as sentiments turned positive on assuring comments from Finance Minister P Chidambaram and also as global markets opened higher after steps by European markets to curb on-going financial crisis.
After the worst fall last week, markets opened with a gap-up in line with other Asian markets on reports that European countries were collectively infusing funds to ease credit in banking system. In another development, UK government said it would inject $63 billion into three banks to keep liquidity crunch at bay.
Back home, Finance Minister Chidambaram's statement that Indian economy was growing at a robust pace and assurances that the Reserve Bank of India will infuse more funds to fight credit squeeze boosted sentiments.
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Nifty Oct at 60 pts premium, resistance seen 3600
14-Oct-2008 Source: Economic Times
MUMBAI: Snapping the losing streak, Indian stock markets posted handsome gains on Monday as sentiment improved on reassurances by Finance Minister P Chidambaram about swift action and US Federal Reserve's move to provide unlimited dollar flow to meet the liquidity crunch in the financial markets.
Banking, capital goods, consumer durables and realty sectors gained the most as NSE's 50-share Nifty soared 6.43 per cent to close the day at 3490.70.
Nifty October futures provisionally settled at a huge premium of 60 points to spot. The contract jumped 7.47 per cent and added 33.53 lakh shares in open interest. The cost of carry was strong at 28.
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Steps to infuse more liquidity
14-Oct-2008 Source: The Hindu
NEW DELHI: In a move aimed at ushering in the “confidence factor” in a free-falling stock market and pre-empting further tanking, Finance Minister P. Chidambaram on Monday promised a slew of concerted measures to infuse more liquidity and advised investors to take “informed” decisions, without haste or panic.
Reading out a statement at a news conference here about 15 minutes before trading on the bourses began, Mr. Chidambaram said:
“We [RBI, SEBI and the government] are working on more measures that will infuse liquidity, make credit intermediation smoother, and increase the confidence of depositors and investors. We hope to be able to announce them shortly.
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Sensex ends day higher by 174 points
14-Oct-2008 Source: The Hindu
Mumbai (PTI): Stock markets on Tuesday opened strongly with benchmark Sensex rising by over 500 points after another pep talk by Finance Minister P Chidambaram but came off day's high level to close the day with a gain over 174 points amid a surge a Asian and European bourses.
Extending its gains for the second day in row, the 30-share Sensex on the Bombay Stock Exchange ended the day at 11,483.40, a rise of 174.31 points, or 1.54 per cent, from its previous close
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Banks in limelight; ICICI Bank surges 15%
13-Oct-2008 Source: Economic Times, New Delhi
MUMBAI: Banking stocks fronted the rally Monday pushing the BSE Bankex up 8 per cent after the central bank cut the cash reserve ratio by a hefty 150 basis points to 7.5 per cent, releasing Rs 60,000 into the banking system.
Addressing a press meet, finance minister P Chidambaram said that the government, the central bank and the stock market regulator were coordinating on an hourly basis regarding the fallout of the global financial crisis on the Indian market.
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Stocks open gap-up on FM comments
13-Oct-2008 Source: Economic Times, New Delhi
MUMBAI: Stocks opened sharply higher Monday after re-assuring comments on the market situation by finance minister P Chidambaram on the health of Indian economy.
He expressed confidence that India can weather the storm of financial crisis blowing across the world saying the country's economic fundamentals and the banking system were strong.
National Stock Exchange's benchmark Nifty climbed 88.75 points to 3368.70.
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PSU banks gain on surprise CRR cut by RBI
11-Oct-2008 Source: Economic Times, New Delhi
MUMBAI: Despite the stock market plunging, repeated assurances by Finance Minister P Chidambaram on India’s strong fundamentals and RBI's surprise 150 bps CRR cut to induce liquidity helped many public sector banks to post gains on Friday.
The shares of many PSU banks recovered from their early lows on hopes that RBI's move to release Rs 60,000 crore in the banking system would help the banks facing liquidity crunch in the background of financial crisis across the globe, brokers said.
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FM conveys concern over IIP figures to Industry Minister
11-Oct-2008 Source: Hindustan Times, New Delhi
Finance Minister P Chidambaram on Friday appeared to be sceptical over the industrial production figures, which showed a plummeting of industrial growth to 1.3 per cent, and said he has conveyed his concerns to the Ministry of Industry.There are certain concerns about the IIP figures and I have conveyed these concerns in the past and today to the Ministry of Industry,"" he told PTI reacting to the data on Index of Industrial Production released by the government
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Keep faith in economy, will ease cash crunch: PC
11-Oct-2008 Source: Economic Times, New Delhi
NEW DELHI: Finance minister P Chidambaram on Friday set up a panel chaired by finance secretary Arun Ramanathan to quickly assess the liquidity crunch faced by India Inc and advise the government on the measures to overcome the crisis. The minister said the government would take appropriate steps to ensure flow of credit to all sectors of the economy.
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RBI, government infuse liquidity
11-Oct-2008 Source: Hindu, New Delhi
Union Finance Minister P. Chidambaram announcing steps to tackle the financial crisis, at a news conference in North Block in New Delhi on Friday.
The Union government and the Reserve Bank of India (RBI) on Friday swiftly moved into the fire-fighting mode to infuse ‘adequate” liquidity into the monetary system.
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Govt. to issue coin in honour of Sister Alphonsa
11-Oct-2008 Source: Hindu, New Delhi
New Delhi (PTI) The government on Saturday said it has decided to issue a commemorative coin in the honour of Sister Alphonsa, who will be canonized as a saint by the Pope tomorrow in the Vatican City.
Finance Minister P Chidambaram announced that the coin will be released on August 19, 2009 in Kerala.
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Chidambaram cancels Washington visit
10-Oct-2008 Source: Economic Times, New Delhi
NEW DELHI: Finance Minister P Chidambaram tonight cancelled his visit to Washington for attending the Fall meeting of the World Bank and IMF on Monday.
Sources said he cancelled his visit to be available here for tackling any situation arising out of the spreading global financial crisis and its ripple effect on India.
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Govt swings into action to tackle liquidity crunch
10-Oct-2008 Source: Hindu, New Delhi
New Delhi (PTI): Hit by a credit crunch and crash in the stock markets, Finance Minister P Chidambaram on Friday said that main problem is liquidity and government would do everything to tackle it. Reserve Bank of India on Friday cut the cash reserve ratio by one per cent to ease liquidity pressures, Chidambaram said and announced to set up a high powered committee headed by Finance Secretary to assess the requirement.
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Fundamentals of Indian economy still strong: FM
10-Oct-2008 Source: Economic Times, New Delhi
NEW DELHI: Finance Minister P Chidambaram Friday reiterated that the fundamentals of the Indian economy were strong, and set up a high-level group to look into the liquidity requirements following the mayhem in the capital market.
The government admitted liquidity was the main problem, a fact reflected in India's central bank - Reserve Bank of India - Friday morning cutting the cash reserve ratio rate (CRR) by another 100 basis points to 7.5 per cent
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We’ll infuse more liquidity into monetary system: Chidambaram
10-Oct-2008 Source: Hindu, New Delhi
NEW DELHI: With the global financial meltdown having its convection impact on India, the Union Cabinet has assured the people of "swift" responses to tackle the credit crisis and, if necessary, infuse more liquidity into the country’s monetary system.
The special Cabinet meeting was convened on Wednesday, at the instance of Prime Minister Manmohan Singh, at a time when the central banks of the U.S., the U.K., Canada and Europe were cutting back interest rates in concert to spur lending and consumer spending so as to fight the onset of recession.
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Economy can still post 8% growth, says Chidambaram
09-Oct-2008 Source: Business Line, New Delhi
New Delhi, Oct. 7 The Finance Minister, Mr P. Chidambaram, has said that India can still end the current year with a growth rate of 8 per cent despite the financial turmoil across the world.
"I am confident that in 2009-10, the growth rate will bounce back to 9 per cent," Mr Chidambaram said at the NDTV Business Leader of the Year Awards function here on Monday evening.
Stating that India would to some extent get affected, but indirectly, by the storm blowing across the world, Mr Chidambaram however highlighted that Indian business and industry had placed the country in a situation "where we can weather the storm".
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Govt approves setting up of Plasma Fractionation Centre
09-Oct-2008 Source: Economic Times, New Delhi
NEW DELHI: Government on Wednesday approved setting up of Plasma Fractionation Centre at a cost of Rs 185 crore as part of the National AIDS Control Programme.
The project would be a part of the Phase III of the NACO's AIDS campaign which has a total financial estimate of Rs 250 crore, Union Finance Minister P Chidambaram today said after a Cabinet meeting.
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Don't act in haste or panic: FM to investors
09-Oct-2008 Source: Economic Times, New Delhi
NEW DELHI: Finance Minister P Chidambaram on Wednesday asked investors to take informed decisions and not to act in panic or haste in the light of steep volatility in the stock market.
"My advise to them (investors) is only this-- take informed decisions, don't act in haste or panic," he told reporters after the special Cabinet meeting on global financial crisis here.
Reposing faith in the Indian economy, the Finance Minister said there is no reason to act in haste or panic.
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Govt extends farmers package by two years
09-Oct-2008 Source: Economic Times, New Delhi
NEW DELHI: The centre on Wednesday decided to extend the timelimit to implement the Rs 16,978-crore rehabilitation package for suicide-prone districts of Karnataka, Maharashtra, Kerala and Andhra Pradesh till September 2011.
The package, which was announced on September 29, 2006, involving an outlay of Rs 16,978 crore, comprising Rs 10,579 crore as subsidy and Rs 6,399 crore as loan, was to be implemented for a period of three years, Finance Minister P Chidambaram told reporters.
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P-Notes curbs lifted to boost foreign capital inflows: FM
09-Oct-2008 Source: Economic Times, New Delhi
NEW DELHI: Finance Minister P Chidambaram on wednesday said restrictions on the Participatory Notes were lifted to encourage more capital inflows and to prevent investment opportunities from shifting to other destinations.
"The problem today is to encourage more inflows and not to export our markets to Singapore," he said while briefing newspersons about the special cabinet meeting to discuss the global financial crisis.
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Function only as banks to stay out of crisis, FM tells bankers
05-Oct-2008 Source: Hindu
NEW DELHI: Seeking to draw lessons from the ongoing global financial meltdown, Finance Minister P. Chidambaram on Saturday advised domestic banks to function only as bank lending institutions to stay out of the kind of crisis being faced by their counterparts in the U.S. and Europe. Speaking at a banking summit on north-eastern States here, Mr. Chidambaram said: "A banker can only be a banker. If he tries to be something else, we will face the same crisis as the U.S. and Europe are facing today."
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Banks should function as banks only to avoid troubles, says Chidambaram
04-Oct-2008 Source: Business Line
NEW DELHI: Drawing some lessons for the Indian banking industry from the ongoing global financial turmoil, the Finance Minister, Mr P Chidambaram on Saturday said a bank should function as a bank to avoid landing in the kind of trouble being faced by the lenders in the US and Europe.
A banker can only be a banker. If he tries to be something else, we will face the same crisis as the US and Europe are facing today, he said while speaking at a special banking summit on north-eastern states here.
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It's for states to adopt sixth pay panel: Chidambaram
04-Oct-2008 Source: Economic Times
NEW DELHI: Finance Minister P Chidambaram on Saturday rejected the demand of north-eastern states to share the burden of additional wage bill and said discretion of adopting the recommendations of the Sixth Pay Commission rests with individual states.
"The Sixth Pay Commission is meant for the central government employees. It is for a state to decide whether it wants to adopt or not," he said while responding to demands raised by representatives of north-eastern states that Centre should bear the additional burden of new pay structure for state government employees.
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Govt. approves fund for broadcasting Commonwealth Games
04-Oct-2008 Source: Hindu
New Delhi (PTI): The Prasar Bharati on Friday got an approval from the Cabinet Committee of Economic Affairs (CCEA) granting it rights to broadcast the Commonwealth Youth Games at Pune and Commonwealth Games in Delhi at a cost of Rs 463 crores.
During a briefing after the CCEA meet, Finance Minister P Chidambaram said the fund is being given to Prasar Bharati to meet the requirement for coverage of both the Commonwealth Youth Games at Pune this month and Commonwealth Games to be held at New Delhi during October 2010
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Financial sector in pink of health: FM
01-Oct-2008 Source: Financial Express
NEW DELHI: As impact of the US financial turbulence spread to various parts of the world, finance minister P Chidambaram and capital markets regulat
or SEBI sought to assure investors that the Indian market is sound and attractive, and promised action against violators. Even as stock market indices stayed in the red in early trade and heads of Asian states tried to convince investors of the soundness of their economies, Mr Chidambaram hurriedly called a Press briefing to assure that the authorities were keeping a close watch on the developments and that if any policy tweaking was needed, it would be done.
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Chidambaram, Bhave calm investor nerves01-Oct-2008 Source: Business Line
Indian market sound and attractive: FM01-Oct-2008 Source: Hindu
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- September 2008
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Plea for more bonus
30-Sep-2008 Source: Hindu, Chennai
MADURAI: Southern Railway Mazdoor Union has demanded payment of bonus with a ceiling of Rs. 3,500 as promised by the Centre. Addressing a demonstration here on Monday, Madurai divisional secretary J.M. Rafi said that Finance Minister P. Chidambaram had refused to effect the increase of Rs. 1,000 on ceiling on bonus to railway employees. The Ministry claimed that the rise in bonus ceiling was profit-linked.
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Financial constraints to hamper MDGs, says FM.
27-Sep-2008 Source: Financial Express
"Dismissing Western countries' oft-repeated argument in recent months that developing countries' increased consumption levels are responsible for soaring food prices, finance minister P Chidambaram said that more than a quarter of India's over one billion population still survives on less than $ 1 a day, in an intervention at the United Nations General Assembly meeting in New York on Friday. Chidambaram also warned that financial constraints are likely to hamper the timely achievement of the Millennium Development Goals (MDGs) with regard to poverty alleviation. ""An argument is made that large developing countries are over-consuming' leading to increased food costs. Nothing could be further from the truth. Developing countries continue to have high child malnutrition levels and still need to battle chronic hunger.
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Chidambaram’s call to bank unions
22-Sep-2008 Source: Hindu, Chennai
SIVAGANGA: Union Finance Minister P. Chidambaram on Sunday asked the bank employees’ unions to give up the proposed all-India strike on September 24 and 25 as negotiations had begun with the parties concerned for an amicable solution.
Inaugurating the 157th branch of Indian Bank at Ulagampatty, near here, he said there was no need to go on strike. Talks were on to find a solution to the unions’ demands
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Be flexible in lending educational loan
22-Sep-2008 Source: The Hindu
KARAIKUDI: Union Finance Minister P. Chidambaram has asked bankers to adopt a flexible approach to extending educational loans to students.
At a ‘loan mela’ arranged by Indian Overseas Bank here on Sunday, he said they could clear loan applications on a case by case basis. "Don’t follow strict rules. Bankers should apply the humanitarian angle while processing the loan applications."
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Colleges told to tap skill development corporation
22-Sep-2008 Source: The Hindu
PUDUKOTTAI: Polytechnic and engineering colleges in the country should take the maximum advantage of the National Skill Development Corporation for enhancing the skills of students and make them employable, Union Finance Minister P. Chidambaram has said.
Delivering the keynote address at the silver jubilee celebrations of Subramanian Polytechnic College at Rayavaram, near here, on Saturday, he said the Corporation, floated by the Union Ministry of Finance with a corpus of Rs.1,000 crore, was aimed at enhancing the skills of students to meet the growing demand for efficiency in industry. The Corporation planned to develop the skills of the youth, and more funds would be allotted to it.
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Stringent laws planned for banking sector
21-Sep-2008 Source: The Hindu
PUDUKOTTAI: Union Finance Minister P. Chidambaram said his Ministry would introduce more stringent laws to ensure further strengthening of the banking industry.
Addressing journalists at Kothamangalam after declaring open the Bank of India’s branch in the village, Mr. Chidambaram said the present guidelines were "strong enough" for the proper functioning of the banking industry.
However, if needed, the Ministry would introduce more stringent guidelines.
Asked to specify the areas where such guidelines needed to be introduced, Mr. Chidambaram said real estate was one such area.
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Banking sector quite safe: Chidambaram
21-Sep-2008 Source: The Hindu
PUDUKOTTAI: Strong government guidelines and strict Reserve Bank of India norms have ensured a safe foundation for nationalised banks in the country, said P. Chidambaram, Union Finance Minister.
Speaking at the inauguration of Bank of India branches at Kothamangalam and Alankudi villages near here on Saturday, Mr. Chidambaram asserted that the banking sector in the country was quite safe. "There need not be any apprehension or fear about the stability of our banking industry."
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FM to consider hike in interest rate on SDS
20-Sep-2008 Source: Economic Times
Finance minister P Chidambaram has agreed to consider a hike in the interest offered on the special deposit scheme (SDS) in which the Employees' Provident Fund Organisation (EPFO) parks 50% of its corpus. However, this would be done only after reviewing the returns on the rest of the EPFO corpus.
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Plea for a bank branch at Andakulam
20-Sep-2008 Source: Hindu
PUDUKOTTAI: The District Chairman of Farmers’ Forum of India G.S. Dhanapathy has urged the Union Minister of Finance P. Chidambaram, to take steps to start a branch of the nationalised bank at Andakulam in Kunnadarkovil panchayat union in the district. In a press release issued here on Friday, Mr. Dhanapathy said that although the branch of the Indian Overseas Bank, started in 1975, was functioning in the village till 2002, it was later merged with its adjoining branch in Perungalur, which fell in Pudukottai panchayat union.
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Sensex above 13,000; banks lead market recovery
19-Sep-2008 Source: Economic Times, Mumbai
Equities staged a smart recovery in the afternoon trade as traders covered short positions in banks and other heavyweights.
Market is also awaiting inflation data for the week ended September 6 which is expected to be around 12.09 per cent against 12.1 per cent previous week.
Banking stocks gained momentum after Finance Minister P Chidambaram told media that Indian banks have no exposure to Lehman Brothers. BSE Bankex was up 0.28 per cent to 6,611.48.
At 1.10 pm, the Bombay Stock Exchange's Sensex was at 13,129.14, down 133.76 points or 1.01 per cent. The 30-share index touched a high of 13,2070.75 and low of 12,558.14.
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Short covering in banking stocks19-Sep-2008 Source: Economic Times, Mumbai
FM remark on Lehman comforts market, lifts bank19-Sep-2008 Source: Economic Times, Mumbai
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Centre to provide Rs 79 cr to 10 loss making PSUs
19-Sep-2008 Source: Business Line, New Delhi
The Centre has decided to provide over Rs 79 crore to 10 loss-making public sector enterprises for meeting outstanding dues, salary and wages for the period January-May 2008.
The Cabinet Committee on Economic Affairs (CCEA) today gave its approval to provide budgetary support of Rs 79.7 crore toward liquidating outstanding statutory dues, salary and wages from January 1 to May 31, 2008 in respect of 10 loss-making CPSEs,” the Finance Minister, Mr P. Chidambaram, told reporters after the CCEA meeting here.
The enterprises that have got budgetary support under the package are Bharat Wagon Engineering, Hindustan Cables, HMT, HMT (Watches), HMT (Chinar Watches), Hindustan Photo Films, Instrumentation Ltd, National Instruments, Triveni Structurals and Tungbhadra Steel Products.
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Inflation inches up to 12.14%
19-Sep-2008 Source: Hindu, New Delhi
Perhaps sensing the marginal rise in the WPI earlier during the day, Finance Minister P. Chidambaram said: “Do not count your chickens before they are hatched. Keep your fingers crossed like I do. I keep my fingers crossed.
Evidently, inflationary pressures still prevail in the economy and the uptrend in prices may force the Reserve Bank of India (RBI) to further tighten money supply during its mid-term review next month. In the event, the RBI may again hike the amount of cash that banks are required to keep with the apex bank as a mandatory requirement under the cash reserve ratio (CRR).
The Ministry’s statement pointed out that the 52-week average inflation during the week ended September 6 stood at 7.30 per cent against 5.42 and 4.47 per cent in the previous two years, respectively. This, it said, was mainly due to high fuel and power prices. The prices of manufactured items stood at 7.09 per cent against 5.41 a year ago.
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FM vouches for health of banks, talks up market confidence
19-Sep-2008 Source: Financial Express, New Delhi
Finance minister P Chidambaram on Thursday calmed the panicky stock markets, stating Indian banks have virtually no exposure to Lehman Brothers, the fallen Wall Street investment bank. He also stated that events abroad would not derail financial sector reforms.
The stock markets, nervous in recent days, reacted well to the minister’s assurances. The bellwether BSE Sensex, which had closed at 13,262 on Wednesday and slumped by 704 points in the morning session, swung back after Chidambaram’s comments around noon. The Sensex closed the day up 52 points, at 13,315.
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Chidambaram sees no reason to halt financial sector reforms
19-Sep-2008 Source: Hindu, New Delhi
Commenting on the impact of the global financial crisis, Union Finance Minister P. Chidambaram on Thursday said that the Indian banks had strong balance sheets and were “very well regulated.
Mr. Chidambaram pointed out that although the banking system was reasonably insulated from the global turmoil, the credit crunch could have some effect on the country as well. "If there is a credit crunch in the rest of the world, it will, to some extent, impact the credit availability in [the] Indian market. [The] RBI, day before yesterday [September 16], took steps to provide liquidity to the banks,” he said.
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No cause for alarm: Chidambaram
19-Sep-2008 Source: Hindu, New Delhi
Finance Minister P. Chidambaram on Thursday assured investors and the people at large that there was “no cause for any alarm” on account of the U.S. financial crisis as Indian banks were largely insulated from the consequent global turmoil.
In his maiden reaction to the collapse of U.S. investment banker Lehman Brothers and bail-out of insurer AIG (American International Group) by the U.S. Federal Reserve, Mr. Chidambaram said that the government would continue on the path of reforms to maintain the momentum in economic growth at close to eight per cent.
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FM to consider hike in interest rate on SDS
19-Sep-2008 Source: Economic Times, New Delhi
Finance minister P Chidambaram has agreed to consider a hike in the interest offered on the special deposit scheme (SDS) in which the Employees’ Provident Fund Organisation (EPFO) parks 50% of its corpus. However, this would be done only after reviewing the returns on the rest of the EPFO corpus.
The finance ministry feels SDS – estimated to be around Rs1.2 lakh crore – is a burden on the exchequer as the government pays 8% interest on these deposits . However, the EPFO’s Central Board of Trustees (CBT) feels the government should pay more interest on SDS. In case the interest on SDS is hiked, EPFO subscribers would get better returns.
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Tata-AIG payment obligations will be met
19-Sep-2008 Source: Economic Times, New Delhi
Tatas, on Thursday, assured insurance regulator IRDA that all Tata-AIG payment obligations will be met, according to Finance Minister P Chidambaram.
The assurance comes in the wake of the mistrust that the American turn of events have meant for insurer AIG that has a tie-up with Tatas in India. Despite assurances from the Insurance Regulatory and Development Authority (IRDA) that money invested with Tata AIG Life Insurance is safe, some policyholders is cagey about their investments in the company. They continue to remain sceptical about the company’s ability to service claims.
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Stock markets end 7-day losing streak as Chidambaram allays meltdown fears
19-Sep-2008 Source: Financial Express, New Delhi
Putting to end seven days of losses, the markets bounced back on Thursday after finance minister P Chidambaram put to rest fears of any US-like meltdown, saying that the credit crisis gripping the country posed no threat to public sector banks in India. Also, positive cues from the European bourses helped lift market sentiment.
The 30-share Bombay Stock Exchange (BSE) Sensex added 52.70 points or 0.40% ending the day at 13,315.60 points. The broader Nifty of the National Stock Exchange (NSE) gained 29.90 points or 0.75%, closing at 4,038.15 points.
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Similar News:
Sensex gains after a roller-coaster ride19-Sep-2008 Source: Hindustan Times, New Delhi
Equities bounce back; Sensex up 45 points 19-Sep-2008 Source: Economic Times, Mumbai
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Goldman Sachs, others get FIPB nod to invest in India
18-Sep-2008 Source: Economic Times
NEW DELHI: The government has cleared 12 proposals involving foreign direct investment (FDI) of Rs 1,400 crore, including that of Goldman Sachs Group to set up a primary dealership firm in the country. The proposals were cleared by finance minister P Chidambaram on the recommendations of Foreign Investment Promotion Board. Goldman Sachs (Mauritius) plans to undertake the activities as a primary dealer.
A proposal by National Housing Bank, US-based United Guaranty and International Finance Corp to establish a joint venture for undertaking mortgage guarantee activities in India was also cleared. The JV is set to bring in total FDI of Rs 570 crore
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Minority despair will trigger new waves of terror: Chidambaram
18-Sep-2008 Source: Hindu
NEW DELHI: Union Finance Minister P. Chidambaram on Wednesday warned of "new waves of terror" if the alienation of the minority communities was not addressed.
There is the challenge of alienation of the Muslim community and, more recently, of the Christian community. The divide between Muslims and Hindus is taking new and dangerous forms — ghettoisation, social boycott, discrimination in employment and the blurring of lines between state and religion as was seen in Gujarat.
Out of the hopelessness and despair of the Muslim community — and if not addressed firmly, the Christian tribal communities too — will rise new waves of terror. There is no other explanation for the phenomenon of graduates and engineers and doctors — born, educated and living in India — taking to the path of violence, Mr. Chidambaram said delivering the Field Marshal K. M. Cariappa Memorial Lecture here.
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Chamber presses for logistics park, mass transit system
15-Sep-2008 Source: Hindu, Chennai
DEVELOPMENT AGENDA: Union Finance Minister P. Chidambaram and Indian Chamber of Commerce and Industry office-bearers display copies of the Coimbatore 2025 action plan he released in the city on Sunday. A mass rapid transit system, a logistics park for the trade and industry and other sections and ring roads are among the projects that the Indian Chamber of Commerce and Industry, Coimbatore is listing as among the key infrastructure requirements of Coimbatore.
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Be patient, inflation will come down, says Chidambaram
15-Sep-2008 Source: Hindu, Chennai
COIMBATORE: Union Finance Minister P. Chidambaram has urged "patience," saying the anti-inflation measures will bear fruit.He was talking to reporters on the sidelines of a function to open the Coimbatore Passport Office on Sunday.
"I have been advising patience, and that is my reply even today." "Inflation has reached a moderate stage now, and it will come down further to become normal," he said.
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Do not hesitate to give education loans
15-Sep-2008 Source: Hindu, Chennai
Coimbatore: Investing in human resources is the best possible investment one can make. This investment will give more returns than any other will. Hence, banks should not hesitate to give education loans to students, Union Finance Minister P. Chidambaram, said here on Sunday.
Inaugurating the 1,937th branch of Indian Overseas Bank (IOB) at Madampatti, near Coimbatore, he said that in the last four years since the United Progressive Alliance (UPA) Government came to power, Rs. 20,000 crore had been given to 12,51,691 students. This was an enormous jump from the figure of 3,19,339 during the National Democratic Alliance rule.
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Investments should not stop
15-Sep-2008 Source: Hindu, Chennai
COIMBATORE: Investments in the industrial sector should not stop as the nation’s economic growth hinges on this sector, though the Government accords top priority to agriculture, Union Finance Minister P. Chidambaram said here on Sunday.
Launching the 80th anniversary celebrations of the Indian Chamber of Commerce and Industry, Coimbatore, he explained that agriculture could, at the most, grow by 4 per cent a year. But, trade and industry were the real driving force behind a fast economic growth. The 4 per cent growth provided by agriculture would not be enough to eliminate poverty, he said, to explain the stress on industrial growth also.
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