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
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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