The week in review for 16 October 2009

The week in review for 16 October 2009

New Delhi: Several major banks reported their quarterly results this week. Net profits for HDFC Bank rose 30.2% to Rs687 crore compared to the same period last year. Axis Bank also boasted impressive growth with a 32% increase in net profit to Rs532 crore on a year on year basis. UCO Bank also reported healthy results with net profit growing 38.4% to Rs208 crore. And also posting results this week was IndusInd Bank, which saw it net profit for the second quarter shoot up 131% to Rs78 crore.

Loading video...

India’s largest mortgage lender, HDFC posted its second quarter on Monday. Net profit rose 24.7% to Rs664 crore beating analyst expectations.

On Thursday Anil Ambani publicly criticized a special audit report that said his company Reliance Communications had overstated its revenues and evaded license fees. Ambani asked Sebi to investigate the recent fall in Reliance Communications stock and said he will take up the issue with the telecom ministry. Reliance Communication stock declined after the report by a government appointed auditor was leaked. According to the audit report, Reliance Communications has overstated its revenues by Rs3,000 crore and has evaded license fees of Rs300 crore.

India’s auction of oil and gas exploration blocks met with a muted response this week. Nearly half of the 70 blocks on offer received no bids, with all of the 76 bids going for just 36 blocks. Provisional winners of the auction include BHP Billiton, which won three blocks, and Cairn India, which got one block.

The World Bank has signed agreements to lend India $4.2 billion for growth related projects. Out of the $4.2 billion, $2 billion will go to public sector banks, $1.2 billion will go to IIFCL to fund infrastructure projects, and $1 billion will go into power transmission projects.

It’s been good news week for India’s auto industry with the Society of Indian Automobile Manufacturers or SIAM revealing impressive sales figures for September. Car sales rose 21% during the month with Indian companies selling nearly 130,000 vehicles. Truck and bus sales were more modest, increasing 6.5% to about 45,500 units while two-wheeler sales rose 6.6% to nearly 674,000 units.

At least one two-wheeler company is laughing all the way to the bank. Bajaj Auto’s net profits for the second quarter leapt 117% to Rs403 crore compared to the same period last year.

France-based Areva could sign an agreement with India’s Nuclear Power Corporation to sell it two 1,650 megawatt reactors for a project in Maharashtra. Areva is also considering offering Nuclear Power Corporation a stake in an African uranium mine to guarantee supplies for the plant.

The Wholesale Price Index jumped 0.92% in the week ending 3 October. Rising commodity prices and food inflation are said to be the main causes of the spike.

India’s industrial output rose higher than expected in August. Industrial production went up 10.4% compared to a year earlier, the most it has risen in 22 months.

Vijay Mallya’s UB Group says it is talking to two foreign companies about entering India’s organized retail market. The UB Group’s subsidiary MCF plans to be the exclusive supplier of agricultural produce items for its international retail partner.

Insurance regulator IRDA has objected to a proposal that suggested removing agents’ commissions from the premiums of policyholders. The proposal it is opposed to came from a government-appointed panel.