Institute Of Management Technology Ghaziabad Inside this issue: Company in Focus:
StartUp in focus: OCTOBER 16, 2011
COMPANY IN FOCUS : HDFC BANK
SohoOS Markets this Week
News of the Week
CAN YOU SOLVE IT?
Sources of Data:
HDFCsecurities Economic Times
START UP IN FOCUS : SohoOS
The Hindu Rediff Money MoneyControl.com Financial Express Indiapetro
Company in Focus : HDFC Bank
About HDFC bank : HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation Limited (HDFC), India's largest housing finance company. It was among the first companies to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. It currently has a nationwide network of 2000 Branches and 6,369 ATM's in 996 Indian towns and cities with a Revenue US$ 2.7 Billion Profit US$ 812.9 Million Total assets US$ 56.5 billion. Housing Development Finance Corporation Limited or HDFC, founded 1977 by Hasmukhbhai Parekh, focusing on home mortgages. HDFC's distribution network spans 283 outlets that include 66 offices of HDFC's distribution company and HDFC Sales Private Limited Capital Structure : The HDFC Group holds 23.63 % of the Bank's equity and about 17.05 % of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). 27.45% of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has about 4,33,078 shareholders. The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002. Business Focus : HDFC Bank deals with three key business segments. - Wholesale Banking Services, Retail Banking Services, Treasury. It has entered the banking for providing working capital finance, trade services, corporate finance, and merchant banking. It is also providing sophisticated product structures in areas of foreign exchange and derivatives, money markets and debt trading and equity research. Wholesale Banking Services - Blue-chip manufacturing companies in the Indian corp to small & mid-sized corporates and agri-based businesses. The Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. Retail Banking Services - HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Mastercard Maestro debit card as well. The Bank launched its credit card business in late 2001. The Bank is positioned in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc. Treasury - Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. These services are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio. Mergers : Times Bank Limited was merged with HDFC Bank Ltd. In 2000. This was the first merger of two private banks in the New Generation Private Sector Banks and the shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. In 2008 the amalgamation of Centurion Bank of Punjab with HDFC Bank was formally approved by Reserve Bank of India. The shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of CBoP. Awards and achievements : HDFC bank is one of the Big Four banks of India, along with State Bank of India, ICICI Bank and Punjab National Bank. It has been recently awarded as the Best Bank by CNBC TV 18. Road Ahead : HDFC has tied up with Diners Club International to promote Diners Club International credit cards. In order to see that the card gets wider acceptance in the Indian market, the bank is also looking forward to offering merchant acquiring services.
StartUp in Focus : Quikr SohoOS was founded in 2010 by a group of passionate people with a desire to shift the benefits of globalization in favor of everyone, everywhere. SohoOS is an ambitious Israeli startup that wants to make it as easy as possible to run a small business. To that end, it's taking all the online tools that small businesses typically pay for--think CRM, accounting, invoicing--and giving them away for free. And it's building a big social network where entrepreneurs can interact and trade tips Driven by a single question: “Why do corporations dominate most markets?” SohoOS embarked on a mission to unveil the reasons, and provide a platform to shift some of the power back into the hands of small and micro businesses. VISION is to establish a new global micro-economy, where economy of scale serves back millions of businesses. SohoOS not only provides the tools to better control the business, but also leverages the power of many small-businesses to achieve a combined strength that bridges the gap in one’s favor. The services it provides! Unified Contacts Manage all the contacts, clients, vendors and leads from one central location with easy-to-use interface. Perform every action directly from SohoOS contact list. Invoices and Billing Request a payment directly by sending out the invoice attached with a link for direct payment. Get paid via multiple payment methods such as credit cards and PayPal, we’ll do the rest. Communication The SohoOS Communication Suite includes local & international calls, FAX capabilities, SMS (to both single and multi destinations), mass email campaigns, as well as video & audio conference calls. Business Inventory Management The SohoOS Inventory feature will send an alert and give an option to order new products on the fly directly from the vendor via a purchase order. Freelance Arena Provides full view and direct access to the most updated project board information out there. Social Business Community Correspond with other business owners directly through an integrated social feed on the dashboard that enables you to find potential leads, partners, vendors and clients through an aggregated system that facilitates our community. Document Management Manage all documents from one concise filing system. Create folders and then link them to clients, vendors, or ongoing projects by uploading documents or linking them from the outside. Document Templates Whether one needs a business plan or a new employee agreement, a letter of intent template or a marketing document – all of them are readily available with a simple click. Project Management Create new projects with start and end dates, allocate a budget, assign milestone and responsibilities, and grant access to each task on a hierarchical basis. In addition, tracking projects with a customized project indicator.
Markets this week The week gone by saw the Sensex/ Nifty rallying smartly. In the process, the main indices broke out of their immediate resistances of 16347-16500/4923-4950, that also coincided with a downward sloping trend line that had held down the highs of Sept 2011. While the Sensex gained 5.19% W-o-W, the Nifty moved up by 5.0% over the same period. The gainers this week were Jindal Steels and TCS with gains of 5.01% and 4.01%. However, Coal India and Tata Steels lost the most around 2.91% and2.84%. Highlights India's steel consumption may grow by just 4.3% in 2011 to 67.7 million tonne, premier industry body World Steel Association (WSA). India's exports registered a robust annual growth of 36.3% to $24.8 billion in September. Chile's central bank kept its benchmark interest rate unchanged for the fourth straight month at 5.25 percent, while indicating it may reduce borrowing costs if the global economy deteriorates further. The week gone by saw the Rupee appreciating against the US Dollar for the second consecutive week. W-o-W, the USDINR pair shed 0.39%. The gains seem to have come on the back of a pullback rally seen in the domestic equity markets. The dollar fell last Friday following the monthly US non-farm payrolls employment report, which showed that more jobs were created in the country in September than expected. The Euro rose sharply after data showed 103,000 new vacancies were filled in the US during September. W-o-W, the Euro gained 3.95% against the dollar. Gold slumped as much as 20% since reaching a record $1,923.70 an ounce on September 6 as investors sold the metal to cover losses in other markets. With one-third of the Dow components and crowd favorite, Apple, reporting results next week, US stocks are setting the stage for another week of gains. The benchmark closed Friday above 1,220 for the first time since early August, and bets against the recent rally could start to pile up. The Cabinet approved the introduction of the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill, 2011, in the next Winter Session of Parliament. Reliance Industries Limited (RIL) on Saturday reported its Q2 results, which was in line with expectations. RIL's Q2 profit was up 15.8% at ` 5703 crore versus ` 4923 crore YoY. China's bank lending last month was the least since 2009 as inflation stayed above the government's target. New loans were 470 billion yuan ($73.7 billion), central bank data showed on Friday. Consumer prices rose 6.1% compared with a 4% goal, a statistics bureau report showed. M2, the broadest measure of money supply, rose 13% from a year earlier, the least in almost a decade, and data for foreign-exchange reserves pointed to capital outflows.
News of the Week Sahara buys 42.5% stake in Force India
needed to advance in the 100-member Senate. In a statement after the vote, Obama accused Republicans of obstruction & said he would work with Senate Majority Leader Harry Reid that individual proposals in the bill would get a vote as soon as possible.
IT Cos Records 19% Growth in Revenue The Sahara India Group has picked up a 42.5% stake in Force India, the Formula One Team co-owned by liquor baron Vijay Mallya, for $100 million. The team will now be called Sahara Force India. The stake sale to Sahara, which also sponsors the national cricket team, was through a fresh issue of shares. Mallya will continue to be the Team Principal with 42.5% stake while Michiel Moi, with whom he acquired the team in 2007, will hold the balance.
Senate kills Obama’s
$447 billion Job Plan The Senate defeated President Barack Obama’s job creation package on Tuesday in a sign that Washington is likely too paralyzed to take major steps to spur hiring before the 2012 elections. The $447 billion package of tax cuts & new spending fell short of 60 votes it
Cable TV Networks Act will be amended through an ordinance. Consumers in the four main metros-Delhi, Mumbai, Kolkata & Chennai-will be the first to switch to the new system. The first phase will require 12-15 million set-top boxes & cost multi-system operators about ` 3,000 crore.
AI to Get Preference in Overseas Flying Rights The Indian IT industry recorded 19% growth in revenues in the 2010-11 financial year to ` 438,296 crore. The growth is a significant recovery for the industry, which recorded 8% growth in 2009-10 in the wake of the global recession in 2008, which made both global & Indian companies cut back on their IT spending. According to the findings, exports accounted for two-thirds (66.4%) of industry’s revenues while the domestic market accounted for the remaining one-third (33.6%).
Government to Retire Analog Cable TV Ninety million homes in the country receiving television programmes via analog cable networks will need to switch to digital set-top boxes beginning March 2012, with the government approving complete digitisation of TV transmission over a two-year period. The
The civil Aviation Ministry is proposing a freeze on capacity enhancement by private carriers on international routes, a
proposal aimed at navigating national carrier Air India out of turbulence. The ministry is finalizing Air India’s seat projections for the next five years & will allocate flying rights to private carriers only after the sate run carrier’s requirements are met. The government grants flying rights in international routes to private carriers on the basis of bilateral, or air service agreements with various countries.
News of the Week continued... One Holding Co for All PSU Banks Likely The government is planning to change the way it controls state-run banks, so they can raise lots of additional capital without the government losing control over them. The finance ministry believes one common holding company to unite 21 state-run banks could eliminate adhoc, last -minute infusion of resources that has been the practice so far. A holding company structure allows for innovation in capital infusion, the reason why nearly 85% of US banks have such a structure.
sector. The proposed transaction values the Max India subsidiary at around ` 2,000 crore, which is almost two-and-a half times the valuation at which private equity fund Warburg Pincus exited the healthcare company in June this year.
Crisil Lowers India Growth Forecast to 7.6%
PSU’s Get Monetary, Operational Freedom to Buy Assets Abroad The profit making state run companies will have greater financial & operational freedom to acquire raw material assets, such as coal & iron ore overseas, under a new policy approved by the government to secure necessary inputs to fire India’s growth. The government has also decided to set up a sovereign wealth fund in ‘due course’ to help acquisitions of energy, fertilizer & mineral raw material assets. The new rules will allow Navratan firms to invest up to ` 3,000 crore in such assets without government approval, as against the present limit of ` 1,000 crore.
Coal Crunch may Trip Power Plants
After many foreign investment banks & multilateral bodies have cut their India growth forecast for FY12, ratings firm Crisil is the latest to join the league. It has lowered India’s growth forecast for FY12 to 7.6% from its earlier estimate of 7.7-8.0% released in May this year, on concerns over a slowdown in advanced economies.
High Rates Reduce S African Chain to Buy Loan Off take, Lure 26% in Max Healthcare Deposits Life Healthcare, South Africa’s second-largest hospital chain, is acquiring a 26% stake in Analjit Singh-led Max Healthcare for rs.516 crore, making this one of the largest foreign investment deals in the Indian healthcare
are slowing due to high rates. Although the so-called credit-deposit ratio has halved to less than 50% from as high as 100% at the beginning of the year, banks do not see any immediate fall in interest rates as they need to attract deposits ahead of huge government borrowing. Deposits are growing since the equities market is a little bit subdued & investors are choosing to park their money in safer avenues such as banks.
New loans by banks as a proportion of fresh deposits have fallen to a four year low this September, indicating investors are flocking to the safety of banks when equity markets are wobbly, & that demand for loans
Power plants in India are rapidly running out of coal & some have already stopped generation, plunging vast parts of the country into darkness & interrupting industrial output in many regions. With floods, strikes & the Telangana agitation crippling mining operations, half of India’s 85,000 mw of thermal power capacity is running on ‘super critical’ fuel stocks or enough coal to produce electricity for less than 4 days.
Solve it Now!
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CAN YOU SOLVE IT ?
Set A Match the following parent companies to their subs idiary -
LAST WEEKâ€™S ANSWERS Set A -
3. Benson & Hedges 4. Good Knight 5. M Tv 6. Blogger.com
Volkswagen Viacom/Network 18 Adobe Systgms Japan Tobacco
2) Indian Overseas Bank 3) UBS 4) World Bank 5) Dream weaver
6) Standard Chartered 7) Bank of America
1. "Laissez-faire" is the term associated which form of economy ?
2. "Experience Yourself" is the tagline of _______ ?
3. How many stock exchanges are there in India?
**Rush in your entries to :
1) Deutsche Bank
The right entries will get their name featured in the next issue of FinXpress. So hit the quiz fast & get yourself visible among 1000 odd in the campus.
LAST WEEKâ€™S RIGHT ENTRIES WERE FROM : Amey Ratnaparkhi
Rahul Dutta Gupta
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Published on Oct 29, 2011