Category Archives: Finance

Finance, Real Estate

Real Estate Prices on Rise – Right Time for Investment?

With economy showing positive signs of recovery, real estate buyers and sellers are seeing some activity again. The prices have already gone up by some 5-15% as compared to the prices in January. With festive season ahead (usually is sees 30-40% of the yearly sales) an investment in real estate could be a less riskier and profitable investment. But a hike in demand could see a downward trend if the Realtors decide to increase the prices artificially, leading to again unsold projects for the Realtors.

As per Cushman & Wakefield, the estimated demand it over 7.5 million units (across all sections and categories), out of which 4.5 million units are from Metros only. So if you want to invest in real estate for long term or for making your portfolio complete you have a good option to invest now. But maintain enough liquidity to hold the property till you get the right prices. In such a case, more liquid options could be making an investment in ‘REITs (Real Estate Investment Trusts), options, property oriented mutual funds, and other mortgage backed securities’.

Our View: See if you can find other avenues of investment to get handsome short term gains before making an investment in Real Estate for long term. Real Estate prices are often hiked by some players. So analyze if you are buying a property that has good growth potential.  From a long term (5 year+) perspective, today’s real estate prices are attractive in many cases, almost every real estate, especially – residential and land – will see good appreciation from current levels.

Link: http://economictimes.indiatimes.com/articleshow/5070182.cms
http://economictimes.indiatimes.com/articleshow/5064201.cms

Business, Economy, Finance

Indian Banks decide to block all your credit cards if you default on one!

Customers with multiple credit cards will not be allowed to use any of them if they default on any one of them. Credit card companies have revised their terms and condition to implement this. This move has been initiated by ICICI Bank, which has already informed its customers about the upcoming change from 5th October 2009.Now the bank is authorized to block credit card on any other account of ICICI Bank after one defaults in any one of its multiple cards. Banks would not provide any additional notice for this action. Continue reading Indian Banks decide to block all your credit cards if you default on one! →

Business, Finance, Healthcare

Fortis Healthcare plans 2-for-5 rights share issue

Fortis Healthcare, the hospital-chain, is coming up with a 2-for-5 rights share issue. And the subscribers will also be entitled to two detachable warrants.

Announcement Date 24-12-2008
Rights Ratio 2:5
Face Value Rs 10
Premium Rs 100
Record Date 20-08-2009
Ex-Rights Date 18-08-2009

Fortis will price its rights issue at Rs 110 per share, to raise Rs 9.97 billion excluding the warrants, it said in a statement to the stock exchange.

The funds will be used mainly to fund greenfield projects (Medicity Gurgaon), redemption of preference shares, repayment of short-term debt, and for M&A and investment opportunities.

Business, Finance

ICICI Bank needs to raise $1bn for FY2010 liabilities: Chanda Kochhar

ICICI Bank needs to raise $1 billion to meet the liabilities at the bank’s global operations due this year, said new CEO Chanda Kochhar. Out of the total $2 billion due to repay, half of the amount will be met through the assets maturities while the rest could be through deposits. ICICI will fund growth in the overseas businesses through raising retail deposits and avoid sales of bonds and interbank borrowing, said Kochhar.

“The rate of growth of that business is definitely going to be very different; in the past, that business has grown 50-60% for us,”‘ said Kochhar. “In the coming year, the growth rate is going to be very moderated” as Indian companies pare back their plans of overseas expansion as well as acquisition, she said. [source : Asian Cerc]