Gold investment speculative: RBI
Terming investment in gold as a speculative activity and not hedge against inflation, RBI deputy governor KC Chakrabarty said on Friday high returns the precious metal offers only reflects high risks associated with it. Discounting the argument that gold is a hedge against inflation, the senior-most deputy governor wondered how a hedge instrument can offer as high as 37% return year after year. “If gold has been giving 37% return for the past few years, how can it be a hedge against inflation?... The second logic is that gold is a safe investment. How come a hedge gives a 37% return?...that means it has become speculation,” Chakrabarty said addressing students of the Vivekananda Education Society.
M&M Fin Serv net up 35.8% at Rs.216.8 cr
Mahindra & Mahindra Financial Services on Friday reported 35.8% jump in consolidated net profit at R216.8 crore for the October-December quarter of the current fiscal, helped by strong revenue growth.
The non-banking finance company had a consolidated net profit of R159.6 crore in the corresponding quarter of the previous fiscal.
“The company maintained healthy growth of business and profits despite slowdown in auto and tractor industry growth and continuing high cost of borrowings,” it said in a filing to the Bombay Stock Exchange. Total consolidated income of the company rose 38.4% to R1,057.32 crore in the third quarter of 2012-13, from R763.93 crore in the year-ago period.
Morgan Stanley reports profit in Q4
Morgan Stanley reported a fourth-quarter profit, driven by higher revenue at its institutional securities business. The investment bank reported income from continuing operations of $573 million, or 28 cents per share, compared with a loss of $222 million, or 13 cents per share, a year earlier. Analysts had expected the company to earn 27 cents per share, according to Thomson Reuters I/B/E/S.
NIC may hike rate of mediclaim premium
State-run National Insurance Company (NIC) may soon increase the cost of health insurance premium to offset losses, company sources said. The hike could be between 20 and 40% for NIC health products, sources in the city-headquartered firm added. Meanwhile speaking on the sidelines of an interactive session of Indian Chamber of Commerce on Friday NIC chairman and managing director NSR Chandraprasad said: “We expect to get the Irda approval on health insurance tariff in a month’s time.” State-run General Insurance Corporation (GIC) chairman Ashok K Roy said there is need for upward revision of health tariff for insurance