Rs 25 cr to curb home loan frauds

Agencies
Mumbai, Mar 2:
Fraudsters would soon find it difficult to raise multiple loans against the same property with the budget setting aside Rs 25 crore for a Central Electronic Registry.
The Central Electronic Registry (CER) would be a database of all all mortgages and the banks that have a charge. So in future when a borrower seeks to avail a loan against an apartment or a house, the lender will be able to verify whether anyone has already got a charge on the property.
Today a majority of home loan frauds are in cases where borrowers raise multiple loans using forged documents. In some cases the fraud is perpetuated by the developer who sells an apartment under construction to two different buyers. Earlier this month ET had reported that the government may announce plans to set up such a registry to mitigate home loan frauds.
All banks and housing finance companies will provide data on title deed and home loans borrower to the central registry. Next time, a bank processes a home loan proposal, it will first verify with the central registry if the title deed is clear and not registered in any other entity’s name, or if any other bank has taken it as a security.

ABB drops on Q4 net dip
Mumbai, Mar 2:
ABB has dropped in morning trades following a dip in Q4 and FY09 profits. The stock opened at Rs 794 and touched a high of Rs 797. However, it slipped 3% from there to a low of Rs 775. The stock is now trading with a loss of 2.2% at Rs 777. Around 12,000 shares have been traded on the BSE so far.
The net profit of the company dropped 43% to Rs 109.60 crore in the quarter ending December 31, 2009 from Rs 193.11 crore in the corresponding quarter a year ago.
Total income decreased 14% to Rs 1,906.78 crore from Rs 2,217.05 crore in the same period.

Bond yields edge up on supply
Mumbai, Mar 2:
Indian federal bond yields edged up in thin trade on Tuesday on concerns about government borrowing in the next fiscal year and worries about speeding inflation due to an increase in fuel prices.
At 9:16 a.m., the yield on the benchmark 10-year government bond was at 7.87 percent after rising to 7.88 percent in early deals. It had had ended at 7.86 percent on Friday after rising to 7.89 percent, the highest since Feb. 19.
Indian markets were closed on Monday for a holiday. On Friday, Finance Minister Pranab Mukherjee raised gross market borrowing by 1.3 percent in 2010/11 to 4.57 trillion rupees, just below a Reuters projection of 4.61 trillion. Net borrowing in 2010/11 is seen at 3.45 trillion.