Sunday 23 September 2012

Finatix Newsletter - September 2012



Definition Zone
Collateralized debt obligation
Collateralized debt obligations (CDOs) are a type of structured asset-backed security (ABS) with multiple "tranches" that are issued by special purpose entities and collateralized by debt obligations including bonds and loans. Each tranche offers a varying degree of risk and return so as to meet investor demand.  
The best of Economics, Finance and Politics
How FDI in multi-brand retail will open up opportunities for real estate sector
Economic Times, September 22, 2012

The recent decision of the government to allow foreign direct investment (FDI) in the multi-brand retail sector will help the real estate sector in the country. This will in turn increase the demand for commercial space in the market. At the same time, as the demand for office space will continue to be strong, fresh jobs creation in the country will also see a strong growth. The requirement of residential space increases five times that of the commercial space used. Therefore, if the demand for the commercial space remains strong, it will also continue to give a fillip to the residential real estate.


BPCL plans Rs 45,000-cr investment for capacity expansion
 Business Line, India September 22, 2012

Public sector Bharat Petroleum Corporation Ltd plans to invest about Rs 45,000 crore in the next four to five years to expand its refinery capacity and upstream operations. In the next four to five years, our company is going to change completely with BPCL emerging as a major player in the exploration and production field.
The company is riding high on its discovery in Mozambique and plans to monetise the gas finds by proposing to set up two LNG plant of 5 mtpa capacity each.
Also on the anvil is its Integrated Refinery Expansion Project that envisages increasing the Kochi refinery capacity from 9.5 mtpa to 15.5 mtpa and diversification into the petrochemical sector to manufacture niche products.


SBI cuts benchmark lending rate by 25 bps
Economic Times, September 22 , 2012

The country's biggest lender, State Bank of India ( BSE 4.30 %)  said on Saturday it has cut its benchmark prime lending rate, the interest rate that commercial banks normally charge, by 25 basis points to 14.50 percent per annum with effect from Sept. 27.

Earlier this week, the bank cut its base rate by 25 basis points to 9.75 percent.

Indian central bank on Monday cut the cash reserve ratio, the share of deposits banks must keep with it, by 25 basis points to 4.5 percent. 



News at Glance
  • Anti-Kudankulam stir reaches Tuticorin port
  • PM for building climate that attract investments
  • Duty on non-subsidized LPG waived
  • Volkswagen drops appeal in 'GTi' dispute with Suzuki
  • No roaming charges likely from next year         



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