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SBI Q3 profit up 52%
Mumbai, January 24
Propelled by robust growth in its corporate, SME and retail advances, along with a sharp jump in net interest income, SBI has clocked a 52 per cent jump in consolidated net profit in the third quarter at Rs 3,713.66 crore against Rs 2,442.32 crore in the year-ago period.

A model tries gold jewellery at the inauguration of a new shop in Chandigarh on Saturday. Gold surges to Rs 14,375
New Delhi, January 24
Gold prices today rose to an all-time high of Rs 14,375 per 10 gram in Kolkata on frantic buying following a steep rise in its prices due to rising concerns over the faltering world economy.
A model tries gold jewellery at the inauguration of a new shop in Chandigarh on Saturday. Tribune photo: Kamal Kishore

Aviation Notes
Crisis management system need of hour
The three-member cabin crew team is more credited for not a single passenger perishing than survival of 150 passengers aboard the Airbus A-320 aircraft diving in a ditch of the freezing Hudson river on the afternoon of January 16.






EARLIER STORIES



Investor Guidance
No tax implications on gift to father
Q: I am a retired executive from a central P.S.U. since 31.01.2003 and aged 64 years. Whatever amount I received as retirement benefits, I spent on renovation of my house and in arranging marriages of my sons and daughter.

 





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SBI Q3 profit up 52%
Tribune News Service & PTI

Mumbai, January 24
Propelled by robust growth in its corporate, SME and retail advances, along with a sharp jump in net interest income, SBI has clocked a 52 per cent jump in consolidated net profit in the third quarter at Rs 3,713.66 crore against Rs 2,442.32 crore in the year-ago period.

The bank's total income rose to Rs 30,318.14 crore, up 24 per cent, from Rs 24,380.99 crore in the year-ago period, a press release issued here today said.

The lender's net non-performing assets shrunk to 1.36 per cent during the quarter from 1.44 per cent a year back. Gross NPAs also contracted to 2.61 per cent from 2.82 per cent a year ago, the release said.

During the quarter, SBI's total advances grew by Rs 1,14,265 crore, up 28.85 per cent from Rs 3,96,014 crore in the same period last year, boosted by a 47 per cent jump in large corporate loans and a 28 per cent rise in SME advances, SBI said.

Its home-loan portfolio swelled by 22 per cent in Q3 while retail, agriculture and mid-corporate portfolios jumped by 27, 26 and 23 per cent, respectively.

The bank also witnessed 32 per cent growth in its auto loans and an impressive 47 per cent jump in educational loans during the quarter. On a year-on-year basis, SBI's international advances grew by 33 per cent during the period.

ICICI’s net up 3.4 pc

Beating forecasts of a sharp fall in profits for the third quarter of the current financial year, ICICI Bank today reported a 3.4 per cent rise in quarterly net profits.

According to a statement released by the bank, its net profit rose to Rs 1,272 crore in the quarter ending December 31, 2008 as against Rs 1,230 crore in the year before.

The bank's total income rose marginally to Rs 10,350.62 crore for the quarter under review, from Rs 10,338.86 crore in the corresponding period last fiscal.

ICICI has been reducing retail loans following a rise in non-performing assets due to the slowdown in the economy.

The bank informed that it had a strong capital adequacy ratio of 15.6 per cent — the highest among large Indian banks. It had also managed to reduce costs by 19 per cent due to rationalising of costs.

ICICI Bank noted that its net interest income for Q3-2009 was Rs 1,990 crore as against Rs 1,960 crore for Q3-2008.

Its treasury income was Rs 976 crore in Q3-2009, primarily by positioning its treasury strategy to benefit from the decline in yields on government bonds, the statement said.

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Gold surges to Rs 14,375

New Delhi, January 24
Gold prices today rose to an all-time high of Rs 14,375 per 10 gram in Kolkata on frantic buying following a steep rise in its prices due to rising concerns over the faltering world economy.

The gold rally in the domestic markets was led by Kolkata, where the metal surged by Rs 470 to close at Rs 14,375 per 10 gram. In Delhi, the precious metal scaled a new peak of Rs 14,100 per 10 gram, a gain of Rs 400, while it rose by Rs 310 to close at Rs 14,075 per 10 gram in Mumbai.

Gold spurted by Rs 365 to Rs 13,900 in Chennai. The upsurge in gold prices surpassed last records set on October 10 last year when the metal in domestic markets traded at around Rs 14,000 per 10 gram.

Trading volumes picked up after reports of the metal rising to a three-month high, climbing past $900 an ounce in both New York and London for the first time since October, as global equity markets tumbled, boosting demand for a safe harbour, marketmen said.

A steep rise in the commodity markets led by crude oil and copper also supported the trading sentiment in the world bullion markets. — PTI

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Aviation Notes
Crisis management system need of hour
by K.R. Wadhwaney

The three-member cabin crew team is more credited for not a single passenger perishing than survival of 150 passengers aboard the Airbus A-320 aircraft diving in a ditch of the freezing Hudson river on the afternoon of January 16.

The US Airways’ well-trained girls stood on either side of two wings to meticulously organise rescue operations for more than half-an-hour.

The Federal Aviation Authority (FAA), air transporters and safety and rescue operators are unanimous in saying that an unprecedented and unbelievable accident did not have any tragic ending not because of 'miraculous landing' by bird-damaged aircraft but because of 'faultless operations' of girls.

The Indian civil aviation analysts are unanimous in saying that had similar situation arisen in this country, the government and media in particular would have gone overboard. The five-member team of two crews would have been decorated with awards, rewards and cash.

Bird hits remain a major area of concern for airports worldwide. The situation in this country is more complex because vast locations around airports are filthy, dirty and heaps of garbage, including flesh and bones of animals, are lying exposed in the open. They attract birds and the menace continues unabated.

Following this incident and another similar bit taking place at Indian airport, the DGCA has reactivated the panels connected with 'bird hits'.

The vigilance around airports has been tightened. This situation will continue for about a month or about and then all authorities will get into their slumber again until another casualty arises.

All international airports, particularly at Delhi and Mumbai, require complete overhauling. There is an urgent need to have New York-type crisis management system.

The investigations are in progress. What went wrong and whether the crisis could have been averted will be known in due time.

But brevity of the cabin crew and smart landing of the former air force pilot will be a shining model in the annals of civil aviation worldwide.

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Investor Guidance
No tax implications on gift to father
by A.N. Shanbhag

Q: I am a retired executive from a central P.S.U. since 31.01.2003 and aged 64 years. Whatever amount I received as retirement benefits, I spent on renovation of my house and in arranging marriages of my sons and daughter.

I received a monthly pension of Rs 926 under EPS1995. Except this pension of Rs 926 I have no other source of income like, interest on FD or MIS etc.

I receive an amount of Rs 80,000 yearly from my son who is employed in a Pvt. Co. and stays at Chandigarh. He files income tax return regularly.

I meet day to day expenses from this amount during the whole year, since I stay at Ambala at my residence. Nothing is saved out of the above amount.

My son has not claimed any deduction in the past on this amount so far while compiling his income tax return.

Now kindly advise me, as to whether this amount of Rs 80,000 can be considered as gift to me from my son and in return can be claim rebate/deduction of this amount from the gross total income for calculation of his income tax liability or this amount of Rs 80,000 is subject to ceiling of Rs 1,00,000 saving? Kindly advice.

— G.S. Saini

A: The amount of Rs 80,000 can be considered as the household expenses of your son or as a gift to you, as he pleases.

In either case, there are no tax implications. Gift to father does not entitle your son of any deductions or rebate for tax purposes.

Capital gains

Q: I have a doubt and need your advice on the matter. I wish to reconstruct an ancestral property at my native place. The property is registered in the name of my grandfather [father’s father].

Both my grandfather and father are not alive. I want to finance the reconstruction by selling a flat that I own in another city. Following are my doubts:

1. Can the capital gains arising out of selling my flat be used for reconstruction of my ancestral property?

2. How will this be shown in my tax returns?

3. If I deposit the money from sale of my flat in ‘Capital Gain Account’ with bank and utilize for reconstruction, what documents should be submitted as proof of having used the money for reconstruction of ancestral property?

— N. Ramakrishnan

A: 1. Tax concessions are available only to the owner of the property. Since the property continues to be in the name of your grand father, you will not be eligible for the same unless you get the property transferred in your name.

2. Even if you get it transferred in your name, note that the interest payable on capital borrowed for acquiring, constructing, repairing, renewing or reconstructing the property is deductible with a ceiling of Rs. 30,000 on self-occupied property.

The enhanced limit of Rs 1,50,000 is applicable on loans taken on or after 1.4.99 but only for acquiring or constructing.

The lower limit of Rs 30,000 continues to be applicable for loans taken for repairing, renewing or reconstructing. Sec. 80C deduction is also available only for acquiring or constructing.

3. The exemption of tax on long-term capital gains u/s 54 is available only if the long term capital gains are invested in purchasing or constructing a house and not for repairing or reconstruction. So depositing the money in Capital Gains Account Scheme will not help.

The authors may be contacted at wonderlandconsultants@yahoo.com.

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BRIEFLY

ArcelorMittal sued over coal contract
Charleston (US):
The US arm of ArcelorMittal is facing a breach of contract lawsuit that accuses the world's largest steel producer of reneging on a $40-million deal to buy more than 200,000 tons of coal used for making steel. The suit filed by a subsidiary of Foundation Coal Holdings claims ArcelorMittal began asking to renegotiate even before the delivery contract went into effect this month. — AP

PlastIndia 2009
New Delhi:
PlastIndia 2009, organised by PlastIndia Foundation, has seen the number of exhibitors increase by a significant 20 per cent. Arvind Mehta, president of PlastIndia Foundation, said, “Foreign players are ready to invest and we expect a lot of joint ventures to happen with right partners on this platform.” — TNS

Dharinder Tayal Dr Dharinder Tayal, a Chandigarh-based industrialist, who has been appointed a director of the Bank of Rajasthan.

Glaxo buyout
Brussels:
GlaxoSmithKline Plc has agreed to buy Belgian pharmaceutical group UCB's operations and commercial rights in a number of emerging markets for 515 million euros ($667.2 million). The two companies announced the cash deal on Friday for more than 50 operations in Africa, the Middle East, Asia Pacific and Latin America. — Reuters

Amartex outlet
Chandigarh:
Amartex Industries on Saturday opened its outlet at Kurukshetra. This is the 78th store of the company. The store was inaugurated by Amartex CMD Arun Grover. — TNS

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