COMPANY MEETING
THE NATIONAL BANK OF INDIA
IMPROVED CURRENT AND DEPOSIT ACCOUNTS FAVOURABLE INDIAN TRADE BALANCE
THE ordinary general meeting of The National Bank of India Ltd. was held on April 2nd at the bank's premises, 24, Bishops- gate, London, E.C., Mr. R. Langford James (the chairman) presiding.
The chairman said : There has been an increase of approximately £1,3oo,000 in current, fixed deposit and other accounts, as com- pared with the previous year, while the amounts representing bills of exchange, discounts, loans receivable, &c., aggregating £15,000,000, show an increase of an almost equal amount—a welcome indication of expanding trade requirements in the principal centres where we operate, of which we hope to see a continuance. While loans payable outstanding amount to £1,5oo,000, cash and bullion at £6,860,000 exceed the amount appearing in the previous balance-sheet by roughly £2,000,000. Our investments in British and Indian Government securities at £13,382,190 compare with £13,518,824 a year ago and were valued at or under market prices ruling on December 31st. Since then there has been a considerable appreciation and their present market value is substantially in excess of that appearing in the balance-sheet.
The net profits for the year amounting to £442,692 are about £1,400 less than those of the previous year. With the amount brought forward there is available the sum of £691,572 out of which an interim dividend at the rate of 16 per cent. per annum, less income-tax, was paid last September and we now recommend the payment of a final dividend at the same rate, and to carry forward £246,572.
POSITION IN INDIA
India had a favourable trade balance of Rs.51.54 crores, against Rs.29.77 crores in 1938, which enabled the Reserve Bank to acquire large resources on this side and has put them in a posi- tion not only of being able to meet the India Government's current requirements but to increase largely the external assets of the currency and to set aside sums for the repatriation of sterling debt. No less than £63,000,00o was obtained during the year as compared with £19,000,000 in 1938.
As usual, I propose to refer briefly to the principal industries in which we are interested, commencing with the Bombay Cotton Mills. Up to the outbreak of the war raw cotton prices were abnormally low and, with the demand for their products expand- ing, the mills were gradually working themselves into an improved condition. In spite of labour troubles—which I trust may prove of short duration—it is to be expected that the pace of this improvement will be accelerated under war conditions, prices of competing imported goods being handicapped inter cilia by increased freight and insurance charges. For many years past imports of coarser fabrics into India have dwindled steadily, but possibly the extent to which that country is becoming self- supporting in the manufacture of fine cotton goods also may not be appreciated generally.
Last year I called attention to the address of Mr. P. S. Macdonald, the chairman of the Indian Jute Mills' Association, at the annual meeting of that body. Reading a few days ago the same gentlemen's speech at this year's meeting, I was left with the impression that here, indeed, is an industry well able to take care of itself and one that is by no means prepared to take misfortune lying down.
Of tea there is not much to say. The industry continues the even tenor of its way' under the protection of the International Regulation Scheme, which, worked by a committee of experts, is now in the eighth year of a successful existence. Since Sep- tember last large quantities of tea have been supplied to Allied countries on terms readily agreed upon between producers and the Government of this country, and a long-term contract, to cover requirements for the duration of the war, is in course of conclusion.
The improvement in the rubber industry which developed during the early part of 1939 and was reflected in a rise in the London price to over 8d. was further influenced by the abnormal factors of the barter agreement with the Government of the United States of America and the outbreak of war. This latter event brought an immediate further rise in prices, and even higher levels were reached in subsequent months, the average for December being 11.5-8d. The rising tendency, however, was checked by additional releases under the Regulation Scheme ; producers have had to face rising costs of production, transit and insurance.
With regard to Indian sugar—now an important industry—it suffices to say that, with a not inconsiderable rise in prices, the mills have had a rather more prosperous year. Much of the profit in the industry, however, found its way into the pockets of the growers, cane prices being regulated by the local Governments concerned.
The report and accounts were unanimously adopted.
Previous page
