Sunday, September 09, 2012
Teething troubles can’t continue for three years. If they do, they are bigger maladies and no simple home remedies will help. The Mahindra Satyam (MSat) management and shareholders should have realised it by now. Three years into the acquisition, the dust raised by the fraud that shocked the Indian industry and investors are yet to settle. Reports in Business Line suggest there were heated exchanges between the management and investors at the MSat annual general meeting over three issues: the Rs 1,230 crore suspense account; MSat valuation and swap ratio for its merger with Tech Mahindra (TechM); and dividend payout for Satyam investors.
State Bank of India (SBI), the country’s largest lender, today cut fixed deposit (FDs) rates by 50 basis points across tenures. For instance, for FDs below Rs 15 lakh with maturity of one year to less than two years will be 8.50 percent. Rates on FDs above Rs 15 lakh and less than Rs 1 crore too have been cut. For instance, a 180-day FD, which had 8%, will have 7.50%. The rates are effective from 7 September. Should you invest now: Other banks are expected to follow SBI. So, should you start parking funds in FD before other banks too cut rates? “Yes” says, Pankaj Mathpal, Mumbai-based, Certified Financial Planners. “Rates are expected to fall further. If you are looking for a risk-free investment, investing in an FD, now is a good idea.”