finxpress_23oct2011

FinXpress

Company in Focus:

DBS Bank

2

StartUp in focus:

ActiveCube

3

Markets this Week 4

News of the Week 5

CAN YOU SOLVE IT? 7

OCTOBER 23, 2011

Sources of Data:

HDFCsecurities

Economic Times

The Hindu

Rediff Money

MoneyControl.com

Financial Express

Indiapetro

Inside this issue:

Institute Of Management Technology

Ghaziabad

InFocus : Development Bank of Singapore

When will RBI stop raising Interest Rates?

DBS Bank Ltd is a bank incorporated in Singapore. It was previously known as The Development Bank of Singapore Limited, before the present name was adopted in July 2003 to reflect its changing role as a regional bank. The bank was set up in 1968 as a development-financing institution led by the Singapore government. DBS Bank is the largest bank in South East Asia by assets and one of the largest banks in Asia. Growth of DBS Bank Ltd: The bank is a known name in the segments of asset management, security and brokerage, treasury and market trad-ing, equity trading and debt fund raising services . The main markets are based in Hong Kong and Singapore. DBS Bank Ltd has been provided with AA and AA1 credit ratings for its high standard services. It has more than 200 branches in more than 50 cities and around 1,000 ATM counters. More than 14,000 people are employed in the bank. It has market-dominant positions in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fund-raising in Singapore and Hong Kong. In 1998, DBS Bank merged with POS Bank, giving it a dominant market share with over four million customers. Indian presence of DBS Bank Ltd DBS Bank Ltd also a strong presence in India due to its credible and professional approach. The bank first began its operations in the year 1994 in the city of Mumbai. The branch became fully operational in the year 1995. The bank established the second operational branch in the year 2005 at New Delhi. It also started a venture with Cholamandalam Investments and Finance Company Limited in order to introduce the Cholamandalam DBS venture in the market. Headquartered at Mumbai, it operates via a network of 12 bank branches across India in Bengaluru, Chennai, Cuddalore, Kolkata, Kolhapur, Moradabad, Mumbai, Nashik, New Delhi, Pune, Salem and Surat. DBS is acknowledged as “India’s Best Foreign Bank”, “India's Best Small Bank” and “India's Fastest Growing Small Bank”. It is also the recipient of "Rising Star Cash Management Bank Award" which it has won for three years in succession. Products and services of DBS Bank Ltd in India: The products and services of DBS Bank Ltd are based on a number of segments. Some of the facilities under which the services of the bank are based on are:Wealth Management, Financial Institution Banking, NRI Services, Savings and Deposit schemes,Corporate Banking services and Treasures Priority Banking services Future in India and other Asian countries: Recently Singapore’s DBS Bank has set up a factoring office in India as parts of its plan to expand its global transaction services business regionally. DBS obtained its membership of the Factors Chain International (FCI) in January, allowing it to widen factoring solutions it can offer in India. It has also introduced export factoring in its Indonesian operation since last month. Export factoring was likely to increase alongside with the strong Asian trade growth, projected to account for 60 per cent of the global trade flow by 2020. Factoring volume in Asia rose 219% from 2004 to 2010, valued at SD 637 billion, according to FCI, the world’s largest factoring network. Likewise, factoring volume in Singapore grew by 123 per cent to SD 10.4 billion over the same period. It focuses on cash management and trade funding for companies, allowing them to sell their invoices to financial institutions and get up to 90% of the invoiced money in advance. The buyers of invoices collect the money later on behalf of the businesses and charges interest on the advanced money given under the factoring system.

Page 2 FinXpress

Company in Focus : DBS Bank LTD.

Activecubes is a global firm providing Analytics Services with associated Technology Solutions. They empower their clients

with the intelligence to make the best decisions. They transform data into intelligence. Leveraging their proven global

service delivery methodology, they provide solutions to global clients across financial services, consumer packaged goods,

retail, telecom and healthcare. Their services span key areas like sales, marketing, supply chain, operations, and risk

management. They provide optimum and de-risked solutions - first time right, on time, on budget, on specification - to

their clients. They are well positioned to add significant business value from.

What They Do?

Analytics: Activecubes works with organizations providing complete solution addressing all the above aspects. Their team

of analysts are well versed with crafting the right questions collaboratively, and coming up with appropriate solutions. A

problem solved analytically will use one or more of the below methods/services. These services have been classified and

listed by the respective domain.

Page 3

StartUp in Focus : ACTIVECUBES

Data analysis

•Insight generation through custom data analysis

•Generating custom reports

•Develop presentations

Customer Analytics

•Loyalty management

•Acquisition, retention, churn management, life time

value

•Campaign management

•Develop communication strategies at a customer level

based on life time value

Marketing Analytics

• Modeling the optimal marketing mix.

•Campaign effectiveness – mass media, online, face to

face and direct marketing

•'Measure Marketing' – a Marketing communication man-

agement tool

•Attribution modeling – Attribute the effect of each

marketing activity to the end goal

Operation Analytics

• Risk analytics

• Supply chain analytics

Business Intelligence: Activecubes' portfolio of Business

Intelligence Services can help establish process,

technologies, and tools needed to turn data into

information, information into intelligence that drive

profitable business action. Their business intelligence

services and solutions are driven from an analytics

perspective, this integrated approach ensures that the

solution:

Improve the quality of data to increase the

confidence in information.

Integrates data across the enterprise to provide a uni-

fied view of the organization.

Enables information to be shared across enterprise

using business intelligence tools.

Intuitive and easy way of interpreting data using visuali-

zation techniques.

Provides a platform on which advanced business ana-

lytics can be performed.

Page 4 FinXpress

Markets this week

The week gone by saw the Sensex/Nifty attempting to take out the crucial highs of 17191/5169. However, the Sensex/Nifty

failed to cross it and slid lower. W-o-W, while the Sensex lost 1.61%, the Nifty shed 1.6% over the same period. Reflecting the

weak sentiments seen during the week, market breath was negative in four out of the five trading sessions of the week.

The top gainers this week were Maruti Suzuki and

Bajaj Auto with gains of 1.53% and 1.52%

respectively. However, Larsen & Turbo lost the most

i.e. 3.54% followed by Bharti Airtel that lost 3.08% .

CURRENCIES Rupee depreciated by 2.04% vs the US

Dollar for the week ended October 21, 2011. Rupee

fell past the 50 per dollar level for the first time in

more than two years this week. The Reserve Bank of

India may boost borrowing costs for a seventh time

this year on October 25 to cap prices. The currency

has declined 10.8% this year, the worst performance

among Asia’s 10 most-traded currencies.

OIL & GAS International crude oil prices (WTI) rose 0.69% for the week ended 21st October 2011 to close at USD 87.40 per

barrel. The BSE Oil & Gas index fell 2.37% to close at 8,650 levels in the week ended 21st October 2011. Reliance Industries and

ONGC fell 3.6% and 0.5% respectively.

GOLD International gold prices fell 2.79% for the week to close at USD 1636.10 per ounce. Gold fell moving once again in

tandem with riskier assets, as jittery investors sold on a lack of progress over euro zone debt talks and an uncertain U.S.

economic outlook.

OTHER MARKETS The US Indices registered mixed

reaction for the week. The NASDAQ dropped 1.1%

for the week while the Dow and the S&P rose 1.4%

and 1.1% respectively. The disparity in the index

movements could be attributable to the mixed

earnings reports from the companies. Japan’s Nikkei

225 Stock Average declined 0.8%, while South

Korea’s Kospi Index rose 0.2%. Australia’s S&P/ASX

200 dropped 1.5%. Hong Kong’s Hang Seng Index

slid 2.6% this week after China’s economy grew last

quarter at the slowest pace since 2009.

KEY HIGHLIGHTS DURING THE WEEK

India's food inflation rate rose to the highest level in almost six months, maintaining pressure on the central bank to

boost interest rates next week. An index measuring wholesale prices of agricultural products gained 10.6% in the week

ended 8th October from a year earlier.

Foreign institutional investors (FIIs) outflow in October 2011 totaled Rs 675.20 crore (19th October 2011). FII outflow in

calendar 2011 totaled Rs 966.80 crore (19th October 2011).

The Government has dropped its plan to open up FDI in multi-brand retail thereby derailing the Indian foray of global

retail players such as Wal-Mart, Tesco and Carrefour.

Page 5 FinXpress

News of the Week

Sudden Surge in Exports to

Bahamas Raises Doubts

An amazing surge in India’s exports to the

Bahamas has stoked the lingering

suspicion that a slice of the country’s

trade is sham transactions done to bring

back money stashed in secret accounts

with offshore banks. In just two years,

exports to the Bahamas have shot up

from $2.2 million in 2008-09 to $2.2

billion in 2010-11.The number in no way

matches the data on the Bahamas’ global

imports which according to UNCTAD was

$2.8 billion in 2010.According to CIA

database, India has only 7.5% share in

Bahamas’ imports which works out to

around 200 million only.

Indians Remit More Than $1

billion Abroad in FY11

Data released by the RBI shows doubling,

tripling & in some cases up to 30 times

increase in spending by Indians overseas

on purchase of property, stocks & gifts in

the past five years. Outward remittances

under the Liberalised Remittance Scheme

of the RBI crossed the billion dollar mark

for the first time in 2010-11.Under this

scheme, every resident Indian is allowed

to remit up to a total of $200,000 abroad

in a financial year including gifts to

relatives, purchases of property,

investment in fixed deposits, equities &

bonds & donations. Since it was

introduced in2004, about $4 billion has

been sent out.

Gaddafi Gone, Libya get rid

of tormentor

Muammer el-Gaddafi, who ruled Libya

for 42 years, died on Thursday as his

last stronghold fell to the Libyan forces

that drove him from power. Senior

officials in the interim government

said his death would allow a

declaration of “liberalisation” after

eight months of bloodshed. Accounts

were hazy of his final hours, which also

appeared to have cost the lives of

senior aides. But top officials of the

NTAC said he died of wounds

sustained in clashes.

Nokia Posts Euro 151-M

Loss in Third Quarter

Nokia reported a net loss of Euro151

million for the third quarter, as a

slump in sales of handsets & smart

devices took a toll on the company.

The world’s largest cell phone maker is

in the red for the second straight

quarter. In the September quarter,

Nokia recorded net sales of euro8.98

billion as compared to euro 10.27

billion in same period last year.

PE Giant 3i to Raise $1.5 b

for 2nd India Fund

3i, Europe’s biggest listed private equity

firm, plans to raise up to $1.5 billion for

its second India fund, but its

investment choice will widen to health-

care & education from infrastructure as

the sector is plagued by policy

paralysis. 3i, which has multiplied its

investment in companies such as Adani

Power & Mudra Port from its $1.2

billion fund, has shifted its focus to non

-infrastructure investments with many

companies struggling to sort out issues

such as fuel supply & land for building

projects. Group chief executive of 3i,

Michael Queen said that in the second

fund they will look at railroads, water

supplies, waste water treatment plants

& infrastructure for education &

healthcare.

Now Economists can’t

Agree on RBI’s Policy

Decision

For the first time in more than three

years, economists, analysts & traders

are at sixes & sevens on what the

monetary policy stance should be. They

are changing their stance so quick that

few are sure so as to what should be

the direction. Some were calling for a

pause in interest rate increase last

month itself. But when it did not

happen, they said RBI governor would

not raise rates on October25 at the half

-yearly review. Now, there is a view he

would not just stop with a raise next

week, but could prolong it. Indeed,

Subbarao himself had reversed his

stance, of course, a year ahead of the

rest when he indicated at a pause in

November last, but soon shifted it.

Bangalore’s ‘Namma’

Metro rolls into Service

Bangalore took a step towards

solving its most pressing urban

infrastructure problem with the

launch on Thursday of a Metro

rail service- India’s third such

after Kolkata & Delhi. Traversing

just under seven kilometres

through the eastern part of the

city, the so called ‘Reach 1’ of the

Metro is regarded more as a sign

of hope than a major contributor

to easing Bangalore’s notorious

traffic congestion. Linking the

once fashionable MG Road

business district with Baiyap-

panahalli, the Metro is projected

to carry 30,000 passengers a day,

with fares ranging from `10-15.

The subsequent ‘reaches’ totally

spanning the 42.3km, will make a

difference when they are

completed in 2014,expecting

vehicular traffic to fall by 30% as

a result.

Tackle Debt Crises, Ibsa

Tells Europe

The fifth summit of Ibsa, which

concluded on Tuesday, pressed

Europe to act decisively to sort

out the euro zone’s sovereign

debt crisis & contain its negative

impact on the world.

Page 6 FinXpress

News of the Week continued.. .

The Tshwane Declaration

adopted at the fifth summit of

Heads of States & Government of

India, Brazil & South Africa said

the implementation of a credible

plan of macroeconomic &

financial policies & structural

reforms of Euro zone countries

were necessary steps to prevent

negative shocks to the world

economy. This message is

expected to be amplified by the

three countries at the

forthcoming G-20 meeting at

Cannes early next month.

China Economy Grows

Least in 2 Years as

Europe Demand Cools

China’s economy grew 9.1% in

the third quarter from a year

earlier, the slowest pace since

2009, driving stocks lower on

concern that Europe’s debt crises

is dragging on the global

recovery. The gain was less than

the median estimate of 9.3% in a

Bloomberg news survey &

followed by a 9.5% increase in

previous three months. Asia’s

benchmark stock index sank

after China’s growth was limited

by tighter credit & weaker

demand from Europe, where

Germany on Monday rejected

speculation that any immediate

resolution of the region’s crises is

possible. A slowdown in the pace

of China’s expansion may help

Premier Wen Jiabao tame

inflation that is above the

government’s target.

Life Insurers May Get

Nod to Raise Non-AAA

Exposure

The Insurance Regulatory &

Development Authority plans to

allow life insurers to buy a greater

amount of non-AAA corporate debt,

which could lead to higher returns

for insurance policy holders. The

move by the regulator could

generate more returns for policy

holders as lower the rating on a

paper, the higher will be the yield

that an investor earns. It will also

widen the investment horizon for

insurers &make more funds

available to companies that don’t

have the highest rating, but are

credit worthy.

Loan, Fee Growth Lift

HDFC Bank Net 32%

HDFC Bank, India’s second largest

private sector lender, posted 32%

year on year growth in net profit to

`1199 crore for the quarter ended

September, driven by robust loan

growth & higher fee income. Other

income, which includes fees,

commission & income from foreign

exchange & derivatives, was up 26%

to `12, 117.70 crore. The main

contributor to the other income was

the income from fees &

commissions, which moved up

15.3% to ` 987.90 crore.

Cartoons

Solve it Now!

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Page 7

**Rush in your entries to : [email protected]

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.

Set A

Dig out the seven hidden company-brand pairs

CAN YOU SOLVE IT ?

Feel free to write to us at : Drop in your suggestions to the editorial team :

[email protected] Magazine design/news : [email protected]

Articles/quiz : [email protected]

LAST WEEK’S RIGHT ENTRIES WERE FROM :

Krishna Koundinya, Amey Ratnaparkhi

LAST WEEK’S ANSWERS

Set A :-

Parent Company Subsidary

1) Volkswagen Skoda

2) Adobe Systems Macromedia

3) Benson & Hedges Japan Tobacco

4) Godrej Goodnight

5) Viacom Network 18 MTV

6) Google Blogger.com

Set B

1)Capitalist economy

2)Tamil Nadu Tourism

3)23