The Reserve Bank of India (RBI) has said that Manappuram Finance Ltd or group company Manappuram Agro Farms are not eligible to accept nay form of public deposits and any acceptance of deposits will be punishable.

The firm is not eligible to accept deposits as it has converted itself into a non-deposit taking non-banking financial company. The central bank said that the company is not permitted to accept deposits from the public and that is punishable with imprisonment.

India's Union finance ministry is considering imposing higher excise duty on diesel vehicles in the upcoming budget in order to help oil retailers reduce the amount losses incurred while selling diesel at government-controlled rates.

The shares of SKS Microfinance fell more than 9 per cent to touch its all time low this morning in early trade after it posted its highest quarterly loss for October-December 2011.

The shares of the company opened in red and fell 9.13 per cent to touch its lowest ever level of Rs 85 on the Bombay Stock Exchange (BSE). After the weak results, investors sold company’s shares on the National Stock Exchange (NSE) too. Its shares fell 8.77 per cent to a record low of Rs 85.30 on the NSE.

Muthoot Finance Corporation Ltd is planning to raise about Rs. 500 crore by divesting up to six percent of its promoters holding in the company, according to the Chairman and Managing Director Thomas John Muthoot.

"As part of our aggressive expansion plan, wherein we will be adding nearly 1,000 more outlets by the end of the fiscal, we are looking at a private placement of 5-6 per cent of the promoters' stake in Muthoot Fincorp, which would get us around Rs 500 crore," said Mr. Muthoot.

The financing unit of the Indian infrastructure major L&T is planning to raise more than Rs 500 crore through a second round of -saving long-term infrastructure bonds.

The issue by the L&T Infrastructure Finance Company will open on January 10 and it will close on February 11 and will be listed on the Bombay Stock Exchange. The company had raised Rs 530 crore through first tranche of bonds last month. The company is aiming to raise a total of Rs 1,100 crore in the current fiscal year.

India's union finance minister Pranab Mukherjee has said that he expects the Indian economy to return to the path of high growth and that the current slow down is only temporary.

The Indian economy has been affected with the international gloom resulting from the sovereign debt crisis in the Eurozone and the slowdown in the US as well as from domestic factors like high inflation and increasing interest rates. The GDP growth rate in the current fiscal year is expected to be around 7.5%, which is lower than the 9 per cent expected earlier.

The India Infrastructure Finance Company (IIFCL) has said that it is increasing its takeout financing disbursement target by Rs 5,000 crore for this financial year.

The move comes following a change announced by the government to its scheme. The changes will benefit banks and infrastructure developers as it will bring attractive takeout financing deals for the firms.

India's Union Finance Minister Pranab Mukherjee has said that he expects the inflation to fall to the level of 6 to 7 per cent by March 2012 if the trend of the fall continues.

"It is true that we are going through difficult times, not just in India, but all over the world," he said. He was speaking to media persons after a meeting with the Chief Ministers of southern States, Union Territories, and heads of public sector banks.

India's union Finance Minister Pranab Mukherjee has said that he expects the rate of inflation to come moderate to around 6-7 % by March, 2012.

"If this trend continues, perhaps we may have the year-end inflation at around 6-7 %," Mukherjee said in the national capital, New Delhi as the food inflation in the country fell steeply to 8 %. The headline inflation in the country, which is measured ont eh basis of the Wholesale price index, has been holding in double-digits in recent months.

A consortium of lenders has agreed to a new financial restructuring plan for troubled state-run Air India, according to airline sources. The group of lenders will ask for a "minor clarification" from the Reserve Bank of India (RBI) on the restructuring plan. The lenders held meeting with the officials form the carrier in New Delhi.

India's union finance ministry has put forward a new consultation paper proposing a new negative list of services, which are to be excluded from being taxed in the country.

The new discussion paper, released on Friday, proposes to exclude 22 categories of services from the tax net. At present, a total of 117 services are taxable in the country. If the proposal is implemented, it will result in a 20 per cent jump in revenue from services.

India's union Finance Minister Pranab Mukherjee has said on Friday that the government's target of Rs. 40,000 crore set for the current fiscal for disinvestment is unlikely to be changed.

The government is aiming to achieve the target for year but the progress will depend on other factors in the country. The government has generated Rs. 1,145 crore through a equity sale in the Power Finance Corporation (PFC).

The present unstable stock markets have unfazed the government as well as the public, and keeping this into consideration, it has been told by the finance ministry on Tuesday that by selling the entire equity in state-owned companies this financial year, they aim to raise Rs. 40,000 crore.

As told by R Gopalan, who is the Secretary in Department of Economic Affairs, on the sidelines of a CII event, "We hope that we would be able to meet the disinvestment target".

Kolkata, Sep 5 - Magma Fincorp Limited, one of the largest asset financing non-banking financial companies (NBFCs) in India, is focusing on western and southern parts of the country to achieve 50 percent business growth.

"We are aiming at substantial growth in western and southern India this fiscal. We will be focusing on states like Maharashtra, Gujarat and Tamil Nadu. The company will be working on expanding networks in these regions," Magma Fincorp vice-president Sumit Mukherjee told IANS.

According to reports, Turkey’s lira fell for the first day, after Moody’s Investors Service reduced Japan’s debt rating, covering up hopes generated by expectations that the U. S. Federal Reserve might announce extra asset purchases.

Also, lira dropped by 0.6% and traded at 1.7793 for a dollar at Istanbul, after the previous day’s 0.9% gain, making it the second-worst performer today amidst over 20 emerging-market currencies that are tracked by Bloomberg.

Fatih Keresteci, a strategist at the Turkish unit of HSBC Holdings Plc, stated: “The expectation that Federal Reserve Chairman, Bernanke may hint a new monetary expansion is affecting the market positively, but Japan’s downgrade has trimmed this optimism”.

Reserve Bank of India’s approval, on various recommendations made by a committee to improve the customer services by banks, is expected to solve many problems. With the implementation of recommendations, the customers will enjoy improved banking services.

The committee is being controlled by previous Sebi chief M Damodaran, who has proposed certain guidelines, which if followed can prove to be consumer-friendly. The major issue being resolved from the recommendations will be the fluctuation in the interest rates that provided privilege only to the upcoming customers.

New Delhi July 8 : State-run power utility major NTPC Friday entered into an agreement with the State Bank of India (SBI) for a loan of Rs. 10,000 crore for its capacity expansion plans.

"NTPC signed the loan (agreement) to surge ahead its capacity expansion plans and to finance the capital expenditure of its ongoing project," the company said in a statement.

The statement further said: "Rupee term loan has a door to door maturity of 12 years with a draw down period of 4 years."

A report prepared by Nadan Nilekani on the financial support to be presented to the Financial Minister Pranab Mukherjee, claimed to save the government Rs. 50,000 crore. The amount was 50% of the income tax returns that the government was expected to pay this year.

Mr. Mukherjee was determined to make the financial support system of the Government of India more efficient and beneficial. With the support of Mr. Nilekani, the minister claimed to start its pilot project soon.

It has been revealed according to a recent revelation that the investment opportunities in the past year were not according what favored one and all. It has been revealed by the Finance Minister Pranab Mukherjee that there shall e better times coming for investment in the latter part of the year.

There is a major advantage that India has had in being able to attract foreign investment. This is because the recovery process of a number of countries in terms of economy is relatively slow.

Citigroup Inc. is reported to have reduced its stake in leading mortgage lender, Housing Development and Finance Corp Ltd, with a sale ranging from 1.5% to 9.9%, as it would reduce Citi's holding to 9.9% from 11.4%, ahead of the adoption of Basel III capital rules.

Also, the bank was reported to have stated, "The transaction resulted in a pre-tax profit of approximately $160 million. Citi has no plans to sell any additional shares of HDFC. Reducing its holdings in HDFC to below 10% is part of Citi's mitigation efforts".