SOFIA TIMES

In This Issue

Market Update

Banking and Financial

Services

Economy and Policy

International Outlook

Companies

3rd December 2013

MARKET UPDATE Tata Motors among top 10 most valuable companies

With a m-cap of Rs.1,28,100 cr, Tata Motors now features at ninth rank in the list and replaces HDFC in this prestigious club. Auto major Tata Motors has entered the club of top 10 most-valuable companies by market capitalisation, following a sharp rally in its stock on Thursday. During intra-day trade, Tata Motors shares touched Rs.405 apiece on the BSE, before closing at Rs 398. With a market capitalisation of Rs.1,28,100 crore, Tata Motors is now at ninth position in the list. This puts the company ahead of Hindustan Unilever, which stands at the 10th position with a market capitalisation of Rs 1,27,680 crore. The Tata Motors stock has been one of the best performers in 2013, appreciating nearly 28 per cent, compared to a 5.7 per cent rise in benchmark S&P BSE Sensex.

Cairn India board okays Rs.5,725 cr share buyback plan

Cairn India Ltd.'s cleared share buyback plan of Rs 5,725 crore for 8.9% stake at at a price not exceeding Rs 335 per equity share, ex-pected to be initiated in January next year. The maximum buyback price represents over 4% premium compared to the average of the weekly high and low of the closing share price of the company during the last two weeks. The Indicative maximum num-ber of equity shares of Rs 10 each that can be bought back would be 170,895,522, resulting in the reduction of equity capital by approxi-mately 8.9%. The proposed Buyback is subject to approval of the shareholders of the Company and other regulatory approvals, as may be required. The Company is currently producing over 213,000 barrels of oil equivalent per day and is on track to meet year-end target of over 225,000 boepd from all producing assets. The Company will be seeking approval of the shareholders of the Company by way of a special resolution to be passed through postal ballot as per applicable provisions of the Companies Act. Post receipt of approval of the shareholders and such other sanctions and approvals as may be required the Company is expected to initiate the Buyback process in January, 2014.

FIIs invest net Rs 8,000 cr in Indian stocks in Nov

Foreign investors pumped in more than Rs.8,000 crore ($1.3 billion) in Indian equities in November. Overseas investment in the stock market has reached Rs.97,050 crore ($17.5 billion) so far in 2013, accord-ing to data from SEBI. Foreign institutional investors (FIIs) were gross buyers of equities worth Rs.55,806 crore and sellers of Rs.47,690 crore of shares till November 29, a net inflow of Rs.8,116 crore. Finance Minister P Chidambaram had said in November the current account deficit is under control, the fis-cal deficit target will be met, export growth is expected to continue and a bumper harvest is likely after a good monsoon. Industrial production and trade data released last month gave an impetus to foreign investors. Industrial output rose 2% in September from a dismal 0.43% in August. India's exports rose 13.47% to USD 27.27 billion in October while imports dipped 14.5%, helping to narrow the trade deficit. As of November 29, the number of registered FIIs in India stood at 1,744 and the number of sub-accounts at 6,410. http://www.business-standard.com/article/markets/fiis-invest-net-rs-8-000-cr-in-indian-stocks-in-nov-113120100061_1.html

MCX appoints former bankers as trustees of IPF

The Multi Commodity Exchange (MCX) has announced the appointment of K G Karmakar, former managing director of NABARD and Ajai Kumar, former CMD, Cor-poration Bank as trustees of the Multi Commodity Ex-change Investor (Client) Protection Fund. They also approved the appointment of the retired IAS officer Satyananda Mishra as the Chairman of MCX’s board. He was appointed as FMC approved Independ-ent Director on its board for a period up to March 31, 2016. The commission approved the appointment of G Anan-tharaman, former SEBI whole-time member, as the Chairman of the Audit Committee and Ravi Kamal Bhargava as the Chairman of the Remuneration Com-mittee of the exchange. http://www.business-standard.com/article/markets/mcx-appoints-former-bankers-as-trustees-of-ipf-113112800864_1.html

BSE launches new platform for listing start-ups, SMEs

BSE launched Institutional Trading Platform to enable the listing of start-ups and SMEs without their having to sell shares through Initial Public Offer (IPO). Capital markets regulator SEBI decided to permit the listing without IPO and trading of specified securities of SMEs, including start-up companies, on Institutional Trading platform (ITP) on the exchanges. ITP will help SMEs and start-ups raise capital from the securities market during their early stages of growth, as lack of exit opportunities for investors in case of unlisted companies come as a major hindrance for small companies to get capital. A company would be eligible for such a listing if it has not completed 10 years after incorporation, and its rev-enues have not exceeded Rs.100 crore in any of the financial years. In addition, the company should have got an investment of at least Rs.50 lakh by an alternative investment fund, or a venture capital fund, or by a merchant banker, or an angel investor, or a specialised international multilateral agency, or a public financial institution, among other such investors. While there would be no need to come out with an IPO, such companies may raise funds through private placement or rights issue. Besides, promoters of these SMEs will need to hold at least 20 per cent of the post-listing capital of the com-pany and it should be locked-in for three years from the date of listing. http://www.business-standard.com/article/markets/bse-launches-new-platform-for-listing-start-ups-smes-113112800954_1.html

BANKING AND FINANCIAL SERVICES

IDBI Bank downgrade reaffirms asset quality fears The only surprise in Standard & Poor’s (S&P) downgrade of IDBI Bank Ltd’s rating was, perhaps, in its tim-ing. After all, the government had said a month ago it would inject Rs.1800 crore into the bank, which would improve the core capital adequacy ratio from 7.8% to 8%. But the bank’s September quarter earnings, re-leased a week after the government statement, confirmed the worst fears of analysts about all public sector banks: worsening asset quality. These fears had led to a slew of downgrades across state-run banks by all rating agencies over the past couple of months. In IDBI’s case, the rating was lowered to below investment grade. The bank has added Rs.1,410 crore and Rs.1,509 crore of bad loans in the first two quarters of this financial year compared with an average of Rs.450-odd crore each in the previous eight quarters. Thus, gross non-performing assets (NPAs) stood at 4.98% of the loan book. When recast loans are added, then total stressed assets stand close to 13% of the loan book, among the highest in the industry. A high level of non-performing assets not only squeezes earnings, limiting the bank’s ability to generate in-ternal capital, it also casts a shadow on existing capital adequacy. At the end of September, IDBI’s net non-performing assets stood at 26.5% of its net worth. While the bank’s core capital adequacy ratio has been hovering around 7.7%, S&P’s “risk-adjusted capital ratio” calculations framework puts it at close to 6.3%, which is “likely to remain at similar levels for the next two years”, the rater said. This is despite factoring in the Rs.1800 crore capital infusion, S&P said. The danger of restructured loans slipping into the NPA category adds to the woes. According to Angel Bro-king Ltd, the “restructuring pipeline of the bank consists of 2-3 large corporate accounts (with possibilities of them becoming NPAs if not restructured in the next quarter)”. The fact that the rating downgrade wasn’t much of a surprise could be seen from the tepid decline in the stock’s value, not much worse than the Banker. IDBI’s valuation of 0.45 times the estimated book value for fiscal 2014 seems to have factored in the asset quality concerns. However, given its large infrastructure ex-posure and concentration of its loan book in terms of single-name exposure, the rating downgrade to junk status is eminently deserved. http://www.livemint.com/Money/PwrFSQNjz5pUFR0HS6hvmI/IDBI-bank-downgrade-reaffirms-asset-quality-fears.html

Mohan Tanksale elected new IBA chief execu-tive Apex banking lobby Indian Banks' Association (IBA) has appointed Mohan V Tanksale as its chief executive. The appointment follows the incumbent K Ramakrishnan retiring on Saturday after a five-year tenure. http://economictimes.indiatimes.com/

Eurozone youth unemployment reaches record high of 24.4% The crisis facing the younger generation across the Eurozone worsened last month as youth unemployment hit a new record high of 24.4% with under-25s in Spain, Italy and Portugal finding it harder to get jobs. The grim news on employment came as the Netherlands was stripped of its prized AAA credit rating despite the country's recent exit from a year-long recession. Ratings agency Standard & Poor's said on Friday that weakening growth prospects showed the country would struggle to improve its financial stability and generate new jobs. It cited weakening consumer demand, high levels of personal debt and falling house prices for keeping con-sumer spending and tax receipts low in the next few years. One in four Dutch homebuyers is in negative eq-uity as a result of falling property values. The Eurozone jobless data showed Spain's youth unemployment rate has now increased to 57.4%, only marginally below Greece's August high of 58% - which remains the highest rate of youth unemployment for any country in the Eurozone's history. Italy's youth unemployment rate rose to 41.2%, from 40.5% the previ-ous month. In Portugal, it rose to 36.5% from 36.2%. http://www.theguardian.com/business/2013/nov/29/eurozone-youth-unemployment-record-high-under-25s

Asset quality problems ravage PSU bank earnings The June quarter earnings of state-owned banks have confirmed the worst fears of investors. Asset quality problems continue to persist, not surprising given the wheezing economy. The 11 state-owned banks that have declared their earnings so far have seen their combined gross non-performing assets jump 46.8% from a year ago. While that number might pale in comparison with the 65%-plus increase in bad loans in some quarters of the previous fiscal year, note that the increase in the June quarter is from an already large base. What’s more, the nine private banks that have declared their earnings so far have reported a 22.13% jump in bad loans, the highest pace in at least three years. Given that they are perceived to have more prudent lending practices (largely because no finance ministry mandarin is breathing down their necks), it is yet an-other indicator of worsening macro fundamentals. Secondly, there is not much respite in loans recast in the June quarter as well. Punjab National Bank, for instance, has restructuredRs.2,770 crore worth of loans in the June quarter at a pace similar to that in the first three quarters of the last fiscal year. What’s even more disheartening is that the slippages from its re-structured loans have reached 20%, according to Emkay Global Financial Services Ltd. Central Bank of India recast Rs.3,000 crore loans, taking its total restructured book to 13.2% of advances. With 6% gross bad loans, total loans at risk are almost at one-fifth of its Rs.1.74 trillion loan book. The resultant increase in provisioning expenses, of course, had an impact on profits of public banks. Net profit growth for this grouping declined 6.51% from a year ago compared with a 25% gain for private banks. To be sure, operating profit growth of 21.43% for the state-owned banks that have declared results was the highest in five quarters. But then, that didn’t come from any dramatic gains in interest income, but rather from trading gains, which pushed up non-interest income by 52%. Even the money set aside for bad loans doesn’t seem enough as declining provision coverage ratios indi-cate. Punjab National Bank’s provisioning cover stands at 40%, while Central Bank of India’s is at 42.5%. The large portfolio of restructured loans will mean more provision in the coming quarters (0.75% to be spread over four quarters this financial year) because of new Reserve Bank of India rules, thus putting fu-ture profits at risk as well. Thus, even if government-controlled bank valuations appear cheap, and some of them are trading below book value, asset quality concerns will drive away investors in the medium term. http://www.livemint.com/Money/VYREkUIkTyQ7jYwWJJcnCJ/Asset-quality-problems-ravage-PSU-bank-earnings.html

Mahila Bank targets business mix of Rs 60,000 crore by 2020 Bharatiya Mahila Bank, the first all-women bank inaugurat-ed last month, expects its business to touch Rs 60,000 crore in the next seven years. The bank has launched a few women specific products and is in process of launching few more, she said. Some of the special products to be launched shortly include loans for setting up catering services and hygienic day-care centres for children of working women, she added. The bank has also decided its fixed deposit rates at 9 per cent for one year, almost at par with leading public sector banks, and savings interest rate at 4.5 per cent, higher than what other public sector banks offer. It also plans to add 16 more branches to its network in the next four months. Coinciding with the 96th birthday of late Indira Gandhi, Prime Minister Manmohan Singh inaugurated the first of seven branches of the bank in the presence of UPA Chair-person Sonia Gandhi in Mumbai on November 19. The idea of an exclusive lender for women was mooted at the Jaipur Congress plenary last year. The bank with staff strength of 100 at the moment has drawn on a majority of cadre from state-run lenders. Besides, it has recruited 110 freshers in officer cadre. http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/mahila-bank-targets-business-mix-of-rs-60000-crore-by-2020/

Government defeat in Lords over banking reform bill The government suffered a defeat over its banking reform bill in the House of Lords on Tuesday night after peers backed a Labour move to introduce a tough licensing regime for senior bankers. Ministers have been criticised for not going far enough with a bill designed to overhaul Britain's banks after the financial crisis and the Libor rate-fixing scandal. The Labour amendment capitalised on those concerns and was voted through by 222 votes to 217. Labour said the government plans did not go far enough. Demands for higher professional standards were supported by Justin Welby, the Arch-bishop of Canterbury, who is also member of the Parliamentary Commission on Banking Standards. Labour described the vote as a further defeat for George Osborne, the chancellor, in the week that he changed tack over payday loans and asked the Bank of England to curb risk-taking by banks. http://www.theguardian.com/business/2013/nov/26/government-defeat-banking-reform-bill

Vince Cable passes RBS data to City watchdogs The business secretary, Vince Cable, has passed evidence of Royal Bank of Scotland's treatment of small businesses to City watchdogs amid allegations that the bank seized assets from firms to benefit its own property empire. The taxpayer-backed lender is facing a series of accusations over its handling of small businesses in a re-port due to be published on Monday by businessman Lawrence Tomlinson, who acts as entrepreneur in residence at the Department for Business, Innovation and Skills. Cable confirmed he has referred the report to the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), as well as RBS and Sir Andrew Large, who is also due to publish his full RBS-commissioned review into small business lending at the group on Monday. The bank, which is 80%-owned by the investigation by the Sunday Times, which claims to have uncovered evidence of a "hit squad" within RBS that has driven businesses into financial difficulty through punitive fees and charges and then scooped up their property assets at rock-bottom prices. The former deputy governor of the Bank of England raised concerns over "serious" allegations of poor treatment by firms in financial distress state, faces further allegations of mistreatment of small firms follow-ing a two-month in an initial copy of his report earlier this month. He also said RBS had failed to meet the bank's own lending targets or the expectations of its customers, with more detail due in his full report on Monday. http://www.theguardian.com/business/2013/nov/24/vince-cable-rbs-city-watchdogs

Co-op Bank investors back £1.5bn rescue The threat of emergency intervention by the Bank of Eng-land into the Co-operative Bank receded on Friday night after thousands of retail investors gave their backing to a £1.5bn lifeline for the troubled high street bank. The support of the bondholders is a major step towards avoiding Thread needle Street having to step in to wind up the bank but is part of a process that will force the Co-op Group – which owns supermarkets, funeral homes and pharmacies – to cede control of its banking business to bondholders, who have been led by aggressive US hedge funds. The complex restructuring is still far from complete – a number of other bondholders still need to approve the deal – but the support of the retail investors was regarded as the biggest hurdle because they needed to be con-vinced to vote. Some 13,000 bondholders had invested £370m in the bank using financial instruments that paid high returns and were relied on by pensioners for income. Other groups of bondholders also have to vote and a number of court hearings are necessary before the fresh injection of capital into the bank will be formally agreed The bank was forced to admit on Thursday that custom-ers were moving their current accounts because of the Flowers scandal and the fears that it would be hard to maintain its ethical approach to business once the Co-op Group was no longer in control. But it had stressed that savers – a key source of its funding – had not been leav-ing. The Co-op Group had warned that if bondholders had failed to back the restructuring they risked losing all their investments as the only alternative was "resolution" by the Bank of England. http://www.theguardian.com/business/2013/nov/29/co-operative-group-retail

ECONOMY AND POLICY

Is 5-6% growth the new normal for Indian economy? Back in the heydays of close to 9% GDP growth, when some commentators voiced concerns about over-heating, a well-respected economic commentator argued that "9% growth and 7% inflation is better than 6% growth and 4% inflation".

So where did we err? In hindsight, we erred in thinking we could wring out growth through ever looser fiscal and monetary policies, without engaging in deeper structural reform, ignoring crucial issues like reforms in markets like land and labour. So, growth has virtually halved in two years to 5% in 2012-13 — the lowest level in a decade — and is not expected to be any better this year. Invest and Grow Consumption-led growth of the early 21st century, courtesy exceptionally-benign global conditions and fiscal and monetary stimulus doled out in the aftermath of the financial crisis, has its limits. A supply-constrained economy like ours needs investment-led growth. Read more at: http://economictimes.indiatimes.com/opinion/comments-analysis/is-5-6-growth-the-new-normal-for-indian-economy/articleshow/26712354.cms

Effects of changes in monetary policy - As we are aware, Rajan raised the repo rate, the RBI's main lending rate, to 7.75 per cent from 7.50 per cent. Simultaneously, he reduced the Marginal Standing Facility (MSF) rate to 8.75 per cent from 9 per cent. What is MSF? The MSF rate is generally pegged 100 basis points or 1 percentage point above the repo rate. Banks can borrow funds through MSF when there is a considerable shortfall of liquidity. This measure has been introduced by RBI to regulate short-term asset liability mismatches more effectively. Effects of increasing repo rate? Since banks now receive cash from RBI at a higher rate, they will increase lending rates on home loans, car loans etc. Thus, people will take lesser loans which will de-crease liquidity. Demand for money increases and supply reduces, which in turn will appreciate rupee.

Q2 GDP encouraging, trend likely to continue: World Bank India head

As per the latest government data, India's second quarter economic growth inched up to 4.8 per cent during second quarter (July-September) of 2013-14, well above 4.4 per cent in the first quarter (April-June). The World Bank India head Onno Ruhl said the World Bank was encouraged by the second quarter GDP numbers and sectors like exports, agriculture and service doing well. To a query on world economic situation, Ruhl said there remains an uncertainty because of the US Mone-tary Policy and that it is hard to predict the global situation. However, he said that the markets have already factored in the US tapering programme. Read more at: http://economictimes.indiatimes.com/news/economy/indicators/q2-gdp-encouraging-trend-likely-to-continue-world-bank-india-head/articleshow/26737537.cms

India's trade surplus with Nepal is taking negative swing Trade surplus of India with Nepal is taking a negative swing as the Himalayan country has recorded a quan-tum jump in its export. Overall trade dynamics of Nepal always leaves its most bold influence on Nepal's trade balance with its largest trade partner, India. According to the latest report of Nepal Rastra Bank (NRB) on macroeconomic situation of the country based on three months period from mid July to mid October 2013, trade deficit of Nepal with India increased by 14.2 per cent over same period last year while the increase in same period last year over the same period previous year was 42.7 per cent. Nepal had a positive swing in its international trade dynamics. Its overall trade deficit growth has gone down to 11.3% during the review period against 40.8% during the same period last year. Nepal's exports to India increased by 18.2 per cent during the review period while the increase was of only 6.0 per cent in the same period previous year. On the other side, Nepal's import growth from India was recorded as 14.8 per cent during the review period against 36.0 per cent recorded in the same period previous year. During the decade since 2001, Nepal enjoyed an average monthly trade deficit of 16463.6 Million NPR. The trade balance reached an all time high of - 3913.3 Million NPR in October of 2001 and a record low of - 42116.3 Million NPR in March of 2013. The usual deficit trade is normally attributed to Nepal's lack of infra-structure and constrains due to geographically landlocked location. India contributes around two third of Nepal's external trade. According to Trade and Export Promotion Cen-tre (TEPC) of Nepal, India's contribution was worth INR 32.5 billion in Nepal's total export worth INR 48 bil-lion during July to June 2012-13 period. Against this, Nepal imported goods worth INR 249 billion from India in same period while its total global import was worth INR 376billion. According to TEPC Chief Mr. I. P. Ghimire, increasing imports of petroleum and cereals contributed highest to Nepal's increasing payable to India. It imported petroleum products worth RS 70 billion from India last year. "Nepal's high dependence on imports from India has increased its trade vulnerability to a level of con-cern," said experts.

INTERNATIONAL OUTLOOK

U.S. jobs picture improving, manufacturing may be slowing

The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, offering signs of a steady improvement in the labor market. While the jobs picture is brightening a bit, factory activity appears to be losing momentum, with business spending on capital goods weakening and new orders for long-lasting manufactured goods falling last month. The unexpected drop in core capital goods orders suggested some ebbing in the manufacturing sector's recently found strength. It could also be an indication that a 16-day partial government shutdown last month hurt business confidence. The tone of the durable goods report was generally mixed, with gains in new orders for primary metals, computer and electronic products, motor vehicles and electrical equipment, appliances and components. Core capital goods shipments, used to calculate equipment spending for the government's measure of gross domestic product, fell 0.2 percent after slipping by a similar margin in September. The second straight month of declines suggested investment in equipment would probably not rise much this quarter after falling in the third quarter for the first time in a year. While businesses are no longer aggressively laying off workers, they have not significantly stepped up hir-ing as domestic demand remains lukewarm. For More on this http://in.reuters.com/article/2013/11/27/usa-economy-jobs-idINDEE9AQ0A820131127?type=economicNews

Iran deal dents oil prices, bolsters Asia

shares Oil prices hit the skids last week after Iran and six world powers sealed a deal curbing its nu-clear programme, a fillip for global economic growth that found expression in heartier share prices from Tokyo to Seoul. Brent crude oil shed

$2.89 to $108.16 a barrel on 25th November 2013, its

biggest daily drop in a month. The agreement gives Iran some relief from crip-pling sanctions and is considered a big step to-ward a more lasting treaty. While Iran will not be allowed to increase its oil sales for six months, any easing of Middle East tensions tends to lead to lower crude prices. If sustained, the drop would be a net plus for spending pow-er globally given high petrol prices essentially act like a tax on consumers. http://www.business-standard.com/article/international/iran-deal-dents-oil-prices-bolsters-asia-shares-113112500172_1.html

Spain ends two-year recession with 0.1% growth Spain has seen its first quarterly economic growth since 2011, according to data from the country's National

Statistics agency INE.

The country's GDP grew 0.1% in the July-to-September period, after contracting for the previous nine quarters. The INE

said an increasing number of exports supported the growth, with a boost to the tourist industry from holidaymakers

avoiding northern Africa and the Middle East. This was brought about by exporters who are so competitive they are selling caviar to Russia, shoes to China, costumes to Hollywood and autos to Germany. While that is hardly enough to make much of a dent in the country's staggering unemployment rate anytime soon, the trend is going in the right direction. Spain's growing international sales, with exports of goods up by nearly 7% this year, are all the more impressive because even powerhouse Germany has seen recent weakness in sales abroad. Exports have surged in part because Spanish companies, like Seat, are desperate for an alternative to a gutted domestic market, and because the government has liberal-ized an archaic labor law, lowering costs and increasing operating flexibility, analysts say. Out of neces-sity, Spanish companies have pushed hard into markets beyond the EU, which traditionally accounted for about two-thirds of Spain's exports. Unemployment, now 26%, will remain high for years because on-ly around 4% of Spanish companies export, and fewer than half of those do so regularly. For Spain as a whole, exports to countries outside the EU grew to 37% of the total last year, from 30% in 2007. However while these are positive signs, the growth could be jeopardized by the roughly 8% rise in the value of the euro against the dollar since July, as it is making products sold outside the euro zone more costly. http://online.wsj.com/news/articles/SB10001424052702304073204579167141898123278

Steady China factory growth in November

underlines economic resilience China's factory growth stabilised in November aid-ed by firm demand, a pair of surveys showed, a sign of resilience in the world's second-largest economy that augurs well for its plans for structural reforms. The final HSBC/Markit Purchasing Managers' Index (PMI) stood at 50.8 in November, a survey showed on 25

th November, down a touch from October's

50.9 but up from a preliminary reading of 50.4. The encouraging outcome echoes an upbeat show-ing from the official PMI, which clung to an 18-month high of 51.4 in November, ahead of market expectations. The upbeat results supported the Australian dollar -- a proxy for the Chinese growth engine -- in early Asian trade and heartened investors who worried that China's economic growth may slip in the fourth quarter. After three decades of double-digit growth, analysts say China's economy has reached a turning point where traditional growth drivers of heavy investment and brisk export sales must make way for a more sustainable expansion in consumption. Beijing has made it clear it would like to start the required changes. China's top leadership unveiled the bold-est economic and social reforms in nearly three decades last month that are expected to give the Chinese economy new drivers of growth. It needs to be seen how these reforms shape up China’s growth.

TCS ranked No. 1 in Customer Satisfaction in Belgium according to Whitelane Research Whitelane Research has published the results of its annual study on IT Outsourcing and IT service pro-vider performance in the BeLux marketplace. TCS is one of the two companies who share the No.1 posi-tion in the Service Provider satisfaction ranking. Over 200 participants of the top IT spending organizations in Belgium and Luxembourg evaluated over 500 unique IT outsourcing contracts with a total combined annual value of €1.6bn.

Core Systems Modernization: Risk and Reward At the BAI Retail Delivery 2013, Zions Bancorporation CIO Joe Reilly compared the risks and rewards of core systems modernization and discussed the TCS BaNCS-Zions partnership. Reilly states that TCS BaNCS was selected for this among 8 different vendors due to its superior tech-nical solution, strong product vision and strategy. Post implementation of Core Banking solution from TCS BaNCS, Reilly expects to see operational effi-ciency gains due to the reduced complexity of the modern core banking system, significantly reduced time to market for new products, and a 360, holistic view of the customer. Tata Consultancy Services has partnered with the Workers Compensation Insurance Rating Bureau of California (WCIRB), using TCS' technology expertise to develop and rollout WCIRB's STAR operating system. Tata Consultancy Services, Saudi Aramco and GE launch the first all-women business process services centre in Riyadh, Kingdom of Saudi Arabia. The centre will be staffed by Saudi women. TCS and GE own 76% and 24% equity in the new venture. It will initially serve Saudi Aramco and GE. The plan is to scale the new venture to create up to 3,000 jobs. Romedy Now - A TV channel that makes you Love. Laugh. Live. Tata Consultancy Services has partnered with the Foreign & Commonwealth Office (FCO) of the UK Gov-ernment to create the Chevening-TCS Scholarship on Cyber Policy for professionals in diverse fields from India. This will be the world's first cyber security and public policy education programme.

COMPANIES

SBI Life Insurance today launched 'Smart Power Insurance' plan, which is designed to care for investor's twin needs of insurance and invest-ment. "Smart Power Insurance plan is a simple, low premium product that takes care of the changing needs of the policy holder as his income in-

creases while giving him flexibility of periodic increase in sum assured and partial withdrawal," SBI Life Managing Director and CEO Atanu Sen said in a release issued here. This plan, which will be available to customers from October 7, comes with two options - level cover option and increasing cover option. Smart Power has two fund options - Trigger Fund option with the advantage of buying low and selling high and Smart Funds option that has the option to choose from seven funds. SBI Life Insurance plans to relaunch about 10 products by January 1 as part of regulatory compliance to make the policies more customer-friendly. "We have some approval from the regulator IRDA. I think we would relaunch about 10 products," SBI Life Insurance Managing Director Atanu Sen told PTI. The Insurance Regulatory and Development Authority (IRDA) had extended the deadline for implementation of new individual product regulations for the life insurance industry by three months to December 31 to ena-

Thousands of students and unemployed youth thronged the job fair organized jointly by the state labour resources department and Veer Kuer Singh University (VKSU) on the Maharaja College cam-pus on Wednesday.

A Gurgaon city court has granted anticipatory bail to the four Ac-

centure employees accused of molesting a former colleague.

Additional district and sessions judge Alka Malik heard the arguments of all the accused and the public

prosecutor and granted anticipatory bail to the suspects on Friday. An Accenture employee working in the

software and consultancy giant's Gurgaon office filed a police complaint on Wednesday against four senior

officials of the company, accusing them of molesting her and making obscene gestures. An FIR was regis-

tered at Udyog Vihar police station, charging the four under Section 354 (molestation) of the IPC. The 27-

year-old woman who filed the complaint lives in Delhi and has been working in Accenture Services Pvt

Ltd's office at Udyog Vihar Phase 1 as a senior associate for a year, the police said. IT consulting firm Accenture said it has bagged a management project to help transform Maharashtra gov-ernment's Sales Tax Department. The transformation will help the Department maximize revenue collection and strengthen its enforcement function, Accenture said in a statement. No financial details were disclosed. Accenture also will identify a service provider to upgrade the Depart-ment's technology infrastructure with the goal of increasing efficiency and updating record maintenance so historical data will be easier to access and identify, it added. Technology services company Accenture has topped the list of 20 most sought after employers in India, compiled by professional networking site LinkedIn.IT majors Wipro and Infosys have been ranked at the second and third place respectively as the ‘most In Demand employer brand’ in India by LinkedIn. In India the top sectors are tech, telecom & media, professional services, and aero/auto/engineering. This is the second year in a row Accenture has retained its numero uno spot, the professional networking site said. The top 10 companies in the list are IBM (4th), Hewlett Packard (5th), Oracle (6th), Tata Consultancy Ser-vices (7th), Amazon (8th), Microsoft (9th) and Airtel (10th). Accenture’s disappointing performance in its financial third quarter of FY2013 and guidance forecast might have signaled a weak earnings quarter for Indian information technology (IT) services companies, more specifically for Infosys, since its dependence on discretionary spending is higher. The US-headquartered IT services and consulting company, which announced its Q3 results on Thursday has reported a muted 0.6 per cent growth in revenues at $7.2 billion, primarily because of the drag from its consulting business. The company said the consulting revenues missed its expectations, and revised its revenue guidance downwards to three-four per cent as compared to earlier projected five-eight per cent.

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