Recruitment

Vijaya Bank is recruiting 93 clerical vacancies all over India. The last date for submission of application is 26.05.2007 Kindly visit Vijaya Bank site for more details and application form.

Stock Market News

Karnataka Bank Ltd has announced a dividend of 35% for 2006-07. Goldman Sachs Investment has sold 5.83 lakh shares of Federal Bank at Rs.264.04 per share on 15.05.2007. State Bank of India has gained 15% to Rs.1327 for the week ended 18.05.2007 ICICI Bank has gained 12% to Rs.951 for the week ended 18.05.2007 HDFC Bank has gained 8% to Rs.1070 for the week ended 18.05.2007 HDFC Bank has announced plans to raise a total of Rs.4,200 crore through a combination of preferential allotment to its promoter group-HDFC- or through a domestic public offering or an offering in international market

Karnataka Bank Ltd.

The net profit of the bank stood at Rs.177.03 crore for the full year ended 2006-07 as against Rs.176.03 crore for 2005-06. The total deposits of the bank stood at Rs.14,037 crore and advances stood at Rs.9,552 crore. The net NPA of the bank stood at 1.22 percent and Capital adequacy stood at 11.03 per cent. The bank has proposed a dividend of 35% .

The BOGOF effect

B.Venkatesh (Business Line dated 20.05.2007) Consider this. You walk into a mall and find two stores that sell clothes. You can buy a shirt in the first store at Rs.750 and get one free. The other store sells the same shirt at 50 percent discount to the marked price of Rs.750. Which store would you prefer? If you are a typical consumer, you would prefer to go to the first store, which gives you a free shirt. Why ? The human mind is attracted to anything that is free. “Buy one get one free” (BOGOF) is a marketing strategy to persuade people to buy things. The alternative would be a price a product at 50 percent discount. When a product sells at a discount, it is natural for us to suspect that it is defective. We, therefore, do not prefer to buy such product, unless we want to go bargain hunting. It was this behaviour at work that my friend and I saw at a mall recently, where one store was attracting the crowd because it had adopted the BOGOF strategy. We display similar behaviour in the stock market. A one-for-one bonus share or stock dividend means you get one share free for every share held. There is great demand for stocks of companies that offer bonus shares. Do bonus shares enchance your investment value ? Not quite. The stock price represents the market’s perception of the company’s fundamental value. When the company issues bonus shares, it gives additional ownership from existing value. It is similar to you having two small slices of pizza instead of one large slice of the same pizza. Yet, people like to buy stocks that provide free shares-because of the BOGOF effect.

RBI extends forex holding period

Indians can now wait up to six months before exchanging foreign exchange received from non-residents or lying unused from an overseas trip. Until now, individuals were required to get foreign currency within as early as seven days for some payments. This step by RBI is viewed as step towards fuller capital account convertibility.