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Officials from the enforcement directorate (ED) and income
tax department on Tuesday conducted searches at premises
in Tamil Nadu said to be linked to former finance minister P
Chidambaram’s son Karti. The UPA-era Cabinet heavyweight
termed it as a “malicious onslaught” on his family.��3
MALICIOUS ONSLAUGHT, SAYS FORMER FM
NO CERTIFICATE FOR PATRIOTISM: PM ��2
ED Targets Chidambaram’s Son
THE ALL-IN-ONE GUIDE TO HELP YOU BEAT VOLATILITY
Hungry for Stocks? Go for ConsumptionOne of the three crucial factors that boosts growth — consumption — is showing conspicuous signs of revival
Banks Likely to Face Profi t SqueezeThe new method for calculating lending rates will have an impact on banks’ net interest margins and profits
Mark Mobius Bets on Tech and FMCGRenowned investment guru places his bets on technology, affordable housing and consumer sectors
Beating VolatilityMarketsET
WEDNESDAY, 2 DECEMBER 2015
PAGES��11-14
BENNETT, COLEMAN & CO. LTD.
THE ECONOMIC TIMESWWW.ECONOMICTIMES.COM
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Is the robust manufacturing growthsustainable over coming quarters?
www.economictimes.com
Do you expect banks to transmit previousRBI rate cuts in the coming months?
TODAY’S QUESTION
76%YES
18%NO
6%CAN’T SAY
Indian Buyers Not Much Interestedin Air Purifiers Despite WHO Alert Indian consumers don't seem to have woken up
to the idea of air purifiers, despite the World
Health Organization raising the red flag over the
air quality in New Delhi and several other cities.
Buyers of air purifiers are mostly expats and in-
stitutions, such as embassies, offices, govern-
ment departments and luxury hotels.
Business of Brands��5
Inside story STRAIGHT TALK RBI guv holds repo rate at 6.75%, but insists he cares about growth.Green shoots in sight, Rajan vows to push banks to pass on rate cut benefits
Our Bureau
Mumbai:Reserve Bank of IndiaGovernor Raghuram Rajan leftinterest rates unchanged as ex-pected but went out of his way todrive home the point that thecentral bank cares as muchabout growth as it does about in-flation amid the reducing threatof price spikes. He also said une-quivocally that a revival was un-derway in India.
“We are in themidst of a recov-ery,” Rajan toldreporters afterthe bimonthlymonetary policyreview on Tues-day. “There areareas of weak-ness, there areplaces ofgrowth. We havean economywhich is welland truly in re-covery. Andhopefully, as wego forward, someof the areas of
weakness will turn around.”The Reserve Bank governor
will be pushing banks to makesure that interest rate cuts madepreviously are transmitted toconsumers and the wider econo-my. With banks still playinghide-and-seek over this, the cen-tral bank is preparing to unveil aformula to compute the baserate, the floor below whichbanks can’t lend. That couldease the burden of monthly re-payments on home and car loansfor borrowers.
Challenge to Govt Finances��25
Rajan Doesn’t HoldA Year-end Party
Guv’s Wait & Watch PolicyRBI accommodative and equally concerned about growth & infl ation
Working onnew formulafor banks topass on rate cutsto customersfaster
“RBI is not against growth. We will ensure sustainable growth… We are in the midst of a recovery. There are areas of weakness, thereare places of growth”
RAGHURAM RAJANGOVERNOR, RESERVE BANK OF INDIA
How RBI Eased Repo Rates
Source: RBI
(IN %)
Jan 15 2015
Mar 4 Jun 2 Sep 29 Dec 1
7.75
7.257.5
6.756.75
Growth pegged at 7.4% for FY16, infl ation at 5.8% by March 2016
RBI keepskey policy
rate unchangedat 6.75% and cash reserve requirement at 4%
RBI to be watchful of impact of pay panel on wages and rents
Someanalystsexpect thecentral bankto wait forthe FebruaryBudgetbefore takingfurther stepson interestrates
RBI Governor Raghuram Rajan said banking re-
forms are “absolutely crucial” while setting a dead-
line of 2017 for banks to clean up their books. He
hoped banks would be better placed to lend when economy
revives and attempts would be made to put stressed assets
back on track. RBI MONETARY POLICY��PAGE 22
Clean up Books by 2017: RajanBANKING REFORMS ABSOLUTELY CRUCIAL, SAYS GUV
Nov FactoryActivityHits a Slump
Auto SalesContinue toMarch North
The auto market,
which got into a
festive mood in
October, has continued the
strong run in November
with the industry estimat-
ed to have posted another
month of double-digit
growth at 10-11%, reports
Ketan Thakkar.��9
Moody's In-
vestors Service
says investment
cycle in India is showing
nascent signs of recovery,
driven by an upturn in the
capital replacement cycle
and an increase in public
sector expenditure.��15
InvestmentPicking up:Moody’s
Crorepati Club:IIT Grads LandHuge Salaries
Foreign recruiters
roll out close to 40
offers with salaries
of over $100,000
tion, joining bonus or Esops.Factoring the variable compo-
nent into the equation — includ-ing Esops — the total packages of-fered by some companies likeGoogle were as high as .̀ 2 crore.
Early indications, IIT sourcessaid, suggest that this year will
see a significantgrowth both inhiring numbersand salaries of-fered, especiallyfrom domesticcompanies.
According to IITplacement sourc-es, Microsoft andOracle were offer-
ing base pay in the neighbour-hood of $100,000-110,000. Thiscould go up to $125,000-140,000and more if certain variablesare included.
A Few Foreign Recruiters Missing��25
Sreeradha D Basu & Prachi Verma Dadhwal
Mumbai | New Delhi: Day 1 ofIIT placements kicked off with abang on Tuesday with interna-tional recruiters rolling out closeto 40 offers with salaries of over$100,000 (.̀ 66 lakh).
A clutch of companies includ-ing Oracle, Microsoft, Google,Visa and US-based employment-related search engine Indeedrolled out international offerswith a base pay of at least$100,000 — not including reloca-
DAY 1 PLACEMENTS AT IITS
A significantgrowth bothin hiringnumbersand salariesoffered isexpectedthis year
Show Me the MoneyIIT-KANPURTop offer of
`1.4 crto 3 students
IIT-BOMBAYSony Japan, Indeed among international recruiters participating
IIT-ROORKEE
74 offers till evening; top offer from Google
IIT-GUWAHATIHighest offer from Oracle;
80 offers made till evening
IIT-BHUHighest domestic offer from WorldQuant
IIT-MADRASBloomberg UK first time recruiter; 5-plus international offers
IIT-DELHI
50 selections till noon; CodeNation, Inshorts among startups
Tiger Global Management— among the most prolific and
influential investors in the Indian startup sector— has
raised a new global fund of $2.5 billion for investments
in private companies, reports Madhav Chanchani.��7
Tiger Global Raises $2.5b Fund
New Delhi: The country’s toptelecom operators have de-clared war on Ringo, thecheap mobile-to-mobile call-ing app launched last week,which threatens to hit their
under-pressurevoice businessby offering farlower rates at atime the indus-try is bracingfor a bruisingtariff battlewith RelianceJio Infocomm.
The big oper-ators haveblocked back-end support tothe mobile-to-
mobile calling service, forc-ing the app to suspend its of-fering. Telecom companiesare now getting ready to com-plain to the Telecom Regu-latory Authority of India(Trai) that Ringo violates sec-tor rules as it doesn’t operateas per licence requirements, acharge denied by the app.
Ringo Gaming System: Mittal��25
FIGHT OVER APP
Operatorsraise voiceagainstcalling app;but foundersays itdoesn’t flout norms
Ringo’s Starmay Fall asTelcos DrumUp Resistance
Bharti Airtel’s
stocks slumped
nearly 4% in in-
traday trade on Tuesday, a
day after it announced in-
vestments of .̀ 60,000
crore, reports AnanditaSingh Mankotia.��11
Bharti AirtelStock Slips
IF RBI GUVDIDN’T HELP,BANKS WILL��PAGE 11
IT companies in Chennai
kept critical resources in
their offices and trans-
ported home scores of dispensable
hands as heavy rains pounded the
city on Tuesday. Chennai, which is al-
so an automotive hub, has seen some
impact on car production too, reports
Bharani Vaitheesvaran. ��PAGE 9
Chennai RainsHit IT, Auto Cos
India’s manu-
facturing
growth fell to a
25-month low in Novem-
ber due to lower demand,
higher input costs and
softening output. The
Nikkei Manufacturing
Purchasing Managers’
Index fell to 50.3.��15
MUMBAI | 26 + 4 PAGES OF BRAND EQUITY + 4 PAGES OF ET PANACHE | .̀ 4.00 OR .̀ 7.00 ALONG WITH THE TIMES OF INDIA
