LIC Housing Finance plans to launch Rs 500-cr fund in Sept

LIC Housing Finance Ltd plans to launch a Rs 500-crore venture capital (VC) fund for urban infrastructure development by September, according to its director and chief executive officer, V K Sharma.

Speaking to reporters on the sidelines of the company’s property exhibition here today, he said LIC Housing Finance had already started the process for launching the fund. The company is also planning to launch a pure fixed rate housing loan product.

LIC Housing Finance would raise interest rates if the Reserve Bank of India (RBI) increases its key policy rates. “The increase in interest rates is squeezing our margin. We did not increase the rates when the central bank revised these last time. We are waiting for the RBI guidance and if the rates are increased again, we also have to go for a rate hike,” said Sharma. It had increased its interest rates by 25 basis points twice in the recent past, in March and June, following the interest rate hikes by RBI.

Sharma said there would not be more than two upward revision in interest rates in future. However, he expressed hopes that the rates would come down after that.

The current interest rate of LIC Housing Finance is around 10.15 per cent for loans up to Rs 20 lakh and around 10.75 per cent for loans above that, on floating rate basis.

The company is expecting a net interest margin of 2.7-2.8 per cent this financial year. It has a nine per cent market share in the country’s housing finance business and is expecting a 25 per cent overall growth this financial year. It is also looking at a loan disbursement of Rs 5,500 crore in southern states, compared to Rs 4,125 crore in the previous financial year, according to Sharma.

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Muthoot Finance To Offer Loans Against Gold ETF Units

Muthoot Finance Ltd, which claims to be the largest gold finance NBFC in India, on Friday said it will now offer loans against Gold ETF (Exchange Traded Funds) units as security.

Launching the service, Muthoot Finance Ltd Managing Director George Alexander Muthoot told reporters here that the loans against gold ETF units was a scheme through which Muthoot Finance plans to venture into a totally new segment of gold financing, which would not only add value, but also enable the company to service the financial requirements of newer customer segments.

The new scheme would come into force by this month end and would enable the customers to avail finance at the rate of 15 per cent interest against their Gold ETF units to the extent of 85 per cent of the Net Asset Value of ETFs.

Muthoot has tied up with Benchmark, for offering the service, which would be available at 30 branches of Muthoot all over the country in the first phase and would be later extended to all 3,000 of its branches.

He said the company expects to extend up to Rs 1,000 crore worth of loans this fiscal.

Gold ETFs have seen a progressive rise in popularity throughout the country over the past two to three years, attaining a whopping size of over Rs 5,000 crore as of June this year, resulting out of active investments from over 320,000 investors, according to National Stock Exchange Assistant Vice-President and Southern Region Head Sunita Anand.

Benchmark Asset Management Company Pvt Ltd National Head-Sales Anil Desai said the golf ETF loan scheme by Muthoot Finance Ltd would act as a source for investors in gold ETFs to raise funds against their investment units during times of need, instead of selling those units.

Commonly referred as ‘paper gold’, gold ETFs are mutual fund units issued by asset management companies against 99.5 per cent purity physical gold deposited with a SEBI-registered custodian.

Gold ETFs are listed and traded on stock exchanges and can be bought and sold like stocks on a real time basis.

These funds are passively managed and mirror domestic gold prices. By enabling investors to invest in gold without holding it in physical form, gold ETFs offer a rather unique investment opportunity to investors.

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TCS Beats, CLSA Says It Will 'Underperform'

Tata Consultancy Services shares surged over 3% Friday after the largest software services exporter of the country reported better-than-expected earnings for the first quarter.

TCS’ net profit of Rs 2,380 crore in April-June was flat sequentially, but higher than Rs 2,240 crore analysts according to a CNBC TV18 poll had expected. First quarter revenue was at Rs 10,797 crore, compared with analysts’ expectation of Rs 10,674 crore.

Rival Infosys had earlier this week dissapointed the market with earnings slightly below analysts expectations and full year guidance little changed from what it had forecast earlier.

"TCS’ 26.2% EBIT margin for the quarter came ahead of the erstwhile margin leader Infosys. However, it was the strong topline growth that took centre stage...The key surprise was the strong growth in telecom vertical (up 14.3% quarter-on-quarter)," brokerage CLSA said in a report. Rival Infosys had seen a decline in the telecom sector during the same period, it noted.

However, the brokerage maintained its "underperform" rating on TCS, saying an unfavourable macro-environment could limit its ability to meet/beat elevated street expectations in the second half of the current fiscal.

"Valuations at 21x March 2012 earnings are indicative of the street’s optimism on continuation of the current growth trajectory and this remains the key challenge for the stock ahead," CLSA analysts Nimish Joshi and Arati Mishra said.

A few other brokerages in contrast sounded more bullish on TCS.

JP Morgan and Edelweiss maintained their "overweight" and "buy" respectively, and Sharekhan upgraded the stock to "buy" from "hold."

"TCS is demonstrating that is continually raising the bar in the sector and extending its lead in indefatigable fashion," JP Morgan’s Viju George and Amit Sharma said in a report.

"TCS reiterates strong demand (even for discretionary projects) and sees a robust pipeline even in Europe. This is in contrast to the commentary of Infosys that it is witnessing some slowness in decision-making on discretionary spending – which supports our contention that growth issues at Infosys are largely company-specific," the two analysts said.

Analysts at Sharekhan said that TCS had "positively surprised" with a "smart performance" in the first quarter and the buoyant management commentary provided further comfort to its estimates for fiscal 2012 and 2013.

Sharekhan is expecting TCS’s net profit at Rs 10,412 crore on revenue of Rs 46,937 crore for the current fiscal, and a net profit of Rs 12,214 crore on revenue of Rs 55,447 crore for fiscal 2013. EBIT margin is likely to be around 27.4%, it said.

"TCS has multiple margin levers at its disposal, which we believe, will sustain its margins, shielding it from continued pressures on account of wage increases across the industry. End-to-end full services offerings, traction in emerging markets, ability to roll up large acquisitions, improving sales and marketing prowess and willingness to take multiple big bets (different go-to-market models) are among the key rationales for TCS to sustain its long term hi-growth trajectory," said Ganesh Duvvuri and Kunal Sangoi of Edelweiss Securities.

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Google Changing Way Brain Remembers Information

Internet search engines like Google are changing the way our brains remember information, according to a new study that says readily available information online makes people easily forget facts since computers become their external memory ".

Researchers from Harvard University and Columbia University said Google and databases such as Amazon.com, IMDb.com serve as an external "memory, where information is stored collectively outside ourselves".

People are more likely to remember things they think they will not be able to find online and will have a harder time recalling information which they know they can easily access online, the study added.

"Since the advent of search engines, we are re-organising the way we remember things," Columbia University psychologist Betsy Sparrow said.

Our brains rely on the Internet for memory in much the same way they rely on the memory of a friend, family member or co-worker.

The research also found that people remembered where they stored their information or where to look for information on the internet better than they remembered the information itself.

In the paper titled "Google Effects on Memory: Consequences of Having Information at Our Fingertips," researchers conducted four experiments.

They gave students 40 statements, asking them to type the information on a computer.

Those who were told the information would be saved had a much harder time remembering the statements later than those who were told it would be erased.

Similarly, Columbia students were asked a series of questions and allowed to take notes.

The students who were told the information would be saved in one of six computer folders had a harder time remembering the information later than those who were told it would be erased.

About 60 Harvard students were asked to type trivia, such as "An ostrich's eye is bigger than its brain," into computers, and were told either the information would be saved or erased.

People who believed the data would be saved were less likely to remember, according to the study published online by the journal Science.

In the last experiment, Columbia undergraduates were told the same information would be saved in files with names such as 'facts', 'data' and 'names'.

The students remembered the file names better than the information itself, the study said.

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Google Registers Huge Q2 Profits

Google Inc has reported a 36 per cent growth in net income to $2.51 billion for the April-June period of 2011 driven by robust performance of core search business coupled with growing strength in other areas such as social network.

In the year-ago period, the company had a net income of $1.84 billion, the Internet search firm said in a statement.

The company posted revenues of $9.03 billion for the second quarter ended June 30, 2011, an increase of 32 per cent compared to the same period of 2010.

"We had a great quarter, with revenue up 32 per cent year on year for a record breaking over $9 billion of revenue," Google CEO Larry Page said.

Google, which recently launched a social network site called Google plus is believed to have more than 10 million people plugged into it. The company is "super excited about the amazing response to Google+ which lets you (user)share just like in real life".

The robust quarterly numbers indicate that company is not only growing in its core search business but also powering ahead in other areas such as new businesses like Google+ and Android.

In addition, the company is also expanding in areas such as mobile and display advertising.

Google-owned sites generated revenues of $6.23 billion in the second quarter of 2011, or 69 per cent of total revenues. This represents a 39 per cent jump over the year-ago quarter 2010 revenues of $4.50 billion.

Besides, the company's partner sites generated revenues, through AdSense programmes, of $2.48 billion, in the second quarter of 2011, up 20 per cent from the year-ago period'.

Internet search giant said its paid clicks, a measure of how frequently consumers click on its ads, grew 18 per cent in the second quarter compared with the same period a year earlier. The average price that marketers paid Google per click rose 12 per cent from a year earlier.

During the quarter, the company has hired over 2,400 new personnel to touch 28,768 employees as of June 30, 2011.
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Mumbai Blasts: Indian Cities On High Alert

Mumbai (Bombay) and other Indian cities have woken up to a state of high alert after three blasts shook the commercial capital, killing 21 and hurting dozens.

Indian PM Manmohan Singh appealed to the people of Mumbai "to remain calm and show a united face".

Later the United Nations strongly condemned Wednesday's attack, describing it as "heinous".

No group has said they carried out the atttack, which took place in three districts during evening rush hour.

Earlier, Maharashtra state's Chief Minister, Prithviraj Chavan said he believed the blasts were "a co-ordinated attack by terrorists", as the explosions had occurred within minutes of one another.

The attacks are the deadliest in Mumbai since November 2008 when 10 gunmen launched a three-day co-ordinated raid in which 166 people were killed.

'Home-made bombs'

One explosion was reported in the Zaveri Bazaar, another in the Opera House business district and a third in Dadar district in the city centre.

All three bombs were reported within a 15-minute period, starting at around 1850 local time (1320 GMT).

Police sources were reported as saying the explosions were caused by home-made bombs.

Mumbai was put on a state of high alert and a commando team is standing by.

The capital, Delhi, Calcutta and several other cities have also been put on alert, with police being stepped up at public places like malls, cinemas, parks and transport terminals.

Peter Wittig, the current president of the UN Security Council, said members of the UN body condemned the attack "in the strongest terms".

"They expressed their deep sympathy and sincere condolences to the victims of these heinous crimes and acts and to their families and to the people and government of India," he said.

"The Security Council is determined to combat all forms of terrorism," he added.

Forensics teams have arrived from Delhi and Hyderabad to examine the explosion sites.

The biggest explosion occurred at the Opera House in an area known as a hub for diamond traders.

One witness said he had tried to help by getting the wounded onto motorbikes to take them to hospital.

"We came outside, and the area was filled with black smoke. There were bodies lying all over the street, there was lots of blood... We saw many bodies missing arms and missing legs," Aagam Doshi told Reuters news agency.

Most of Mumbai, however, began to return to normal life as dawn broke on Thursday, with vendors making their usual rounds and schools kept open despite the attack.

Mumbai has been targeted many times in recent years.

The 2008 attacks, which targeted two high-end hotels, a busy train station, a Jewish centre and other sites frequented by foreigners, were blamed on the Pakistan-based Lashkar-e-Taiba militant group.

Pakistan was quick to condemn the latest explosions, in a statement issued by the foreign ministry.

Peace talks between Pakistan and India have only recently resumed since they were broken off after the 2008 attacks.

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Safe Banking Information From ICICI Bank On Phishing And Online Frauds

Phishing e-mails

• Fraudsters send out e-mails asking for your confidential banking information like user ID, password, PIN, CVV, debit card grid-values etc.
• With this information the fraudster takes money out of your account or shops online.
• The e-mails appear to look like they have been sent from public authorities like The Reserve Bank of India (RBI).

Do not respond to such e-mails, RBI or ICICI Bank will never ask for your confidential banking details.

RBI has issued a clarification that it has never sent any e-mails and also appeals to the members of the public not to respond to such e-mails and not to share their bank account details with anyone for any purpose.

Online frauds

• Fraudsters send attractive offers to consumers through letters, e-mails, calls, SMS's etc luring them to invest in schemes or opportunities that sound too good to be true.
• The offers are apparently signed by senior authorities of RBI.
• They often ask consumers to remit money in an unknown account.

Be alert, they are fake offers. RBI and ICICI Bank cautions you not to respond in any manner to such offers of moneys from abroad.

RBI does not undertake any type of money arrangement, by whatever name called, and it does not take any responsibility for recovering moneys remitted in response to such fake communications.

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WHAT SHOULD YOU DO WHEN YOUR CAR METS AN ACCIDENT ??

Accidents can happen at any time, any place so it is always best to be prepared. Motor vehicle accidents in particular, have a high frequency rate so having insurance would not just be an advantage but a requirement

Being in an accident without any proof of insurance is worse, aside from paying a fine, you will lose your driver’s license. Also, if you’re the cause the accident and you do not have liability insurance, you may have to pay for the third party property damage and the injured person, yourself and these costs may be substantial.

While car insurance can certainly give drivers peace of mind and security, it can be quite complicated once you actually get into a car accident. There are certain do’s and don’t’s in any insurance transaction, so in order to fully maximize your insurance, here are essential must do’s and for car insurance claims:

When a Crash Occurs

Stop your vehicle in a safe place. In most areas it is illegal to leave the scene of an accident. Determine if anyone in your vehicle or other involved vehicles is hurt. Summon an ambulance, if needed. After the accident, if you’re able, make sure you take pictures of the scene, get the contact information of the people involved and take note of the details of the accident such as the weather condition or other factors such as traffic lights, etc. See a doctor after an accident, he will be able to treat your wounds and diagnose further necessary treatment and medical attention.

Report the Accident

Laws in some areas require that all accidents be reported. Contact your insurance company as soon as possible when you get involved in a car accident. Many insurance companies also require that crashes be reported to police if there is any involvement of third party damage, or they may deny payment of claims.

THE CONTACT CENTER FOR INSURANCE COMPANY WILL HELP YOU TO LOCATE NEAREST SERVICE GARAGE FOR VEHICLE REPAIR AND PROCESS OF CLAIM.

Be honest with your insurance company. Concealment of material facts, no matter how insignificant or potentially embarrassing you think it is, can invalidate your policy so always make sure you give your insurance company truthful information.

Be Cooperative
When police officers arrive on the scene, be cooperative, and provide any requested information. Get the names of the officers on the scene, and ask them to provide you with any information necessary for you to obtain an accident report. Also exchange contact information and insurance information with others involved in the crash. Get the names of witnesses and their contact information as well.

Know the difference between replacement coverage and depreciated or actual cash value.
Don’t settle a personal property loss for actual cash value when your policy provides for replacement.

If you ever find yourself in a situation where you don’t feel you’re getting fair compensation from an insurance company, either with regards to medical expenses, auto damage or anything else to which you think you’re entitled, talk to your agent or call center of insurance or Customer service manager ( claims ) or your attorney about your claim.

Do review and understand your coverage before talking to your insurer or your agent. Read the "Coverage" and "Exclusion" sections of you policy in particular.

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Track Your PF Account With A Click Of Mouse

An update of your Provident Fund (PF) account's balance is only a mouse click away. The Employees' Provident Fund Organization ( EPFO ) on Friday posted a link in its website , enabling members to get their PF account balance update as SMS alert on their cell phones.

Members only need to furnish their respective PF account numbers to avail this facility. EPFO had been conducting an internal trial of this software for the past two months.

"The idea is to make the system transparent. Now, an employee can regularly check, whether the amount, which is being deducted every month from h/his salary, is getting deposited with us. If s/he finds any discrepancy , the individual can take the matter up with the employer or us," said central provident fund commissioner S Chatterjee.

EPFO has also started online tracking of PF claims as part of the initiative to inculcate transparency . Account update details too are available online for each of the 120 EPFO offices in the country . The labour minister has set a target of December 2011 for all PF accounts to be updated.

The organization has also completed updating of the 4.72crore pending accounts for 2008-09 ahead of the September deadline . The finance ministry had set this timeframe while approving the 9.5% interest rate for 2010-11 year.
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Health Insurance Portability May Miss July 1, 2011 Kick-off

You may have to wait a little longer to get a portable health insurance policy. Insurance companies are seeking more ‘clarity' and time to implement the portability of health insurance which is supposed to come into effect from July 1, 2011.

Representatives of general insurance companies are meeting Mr J. Hari Narayan, Chairman, Insurance Regulatory and Development Authority (IRDA), on Friday to bring to his notice some issues of immediate concern in switching over to the portable health insurance regime.

“The move is good but there are certain issues to be sorted out before July 1. We, along with other insurers, will be talking to the regulator,” Mr G. Srinivasan, Chairman and Managing Director, United India Insurance Company Ltd, told Business Line.

According to industry experts, the implementation of portability from July 1 would be difficult from a company's perspective.

“Greater clarity is needed on some vital issues. For instance, If we want to accept a health policy from a customer of others, obviously some information on previous medical/claim history is required,” Mr B. Subrahmanyam, Vice-President, Bharati AXA General Insurance Company, said.

There is also confusion on the applicability of portability to various types of health plans which are broadly divided into basic plans and plans with option of benefit component (in case of hospitalisation) and indemnity.

“It is also not understood how portability would be effected from a health plan offered by a life insurance company to a general insurer,” Mr Subrahmanyam said.

“If you see from a customer point of view, there could be hitches as well. The migration from one company to another cannot be a smooth affair if serious issues are not settled,” said the head of a leading general insurance company.

“Many companies, however, have done their groundwork on underwriting, documentation and other procedures to be followed in case IRDA insists on giving the portability without any postponement. But we are hopeful our request will be considered,” he added.

When contacted, a senior IRDA official said the regulator would take a decision keeping in view the interest of the policyholder as well as companies. “First, we have to talk to the companies,” he said.

In February 2011, the IRDA had directed insurers to ensue health policy portability and had also ensured the companies that it would make policy-wise claim history available for effecting quick portability.

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