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Old July 31st, 2008, 03:04 PM   #1
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Indian Banking, Insurance and Finance

Post news about the Indian banking, insurance and finance sector here.

About time we had a thread for this sector
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Old July 31st, 2008, 04:20 PM   #2
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Government may slice Axis bank pie

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THE government is vetting a proposal to sell part of the equity holdings it controls in Axis Bank through qualified institutional placement (QIP) to a wide base of investors.
The plan centres around offering over 21% of Axis Bank’s equity held on behalf of the government by the Specified Undertaking of UTI (SUUTI) to a broad-based set of investors. A diversified investor base will ensure that the banking regulator’s norm of capping a single investor’s shareholding in a bank at 5% is adhered to. A senior government official with knowledge of the sale process said the transaction would be carried out in a manner in which no regulatory exemptions would be sought.
What he implied was that neither the Reserve Bank of India’s norms on shareholding in banks nor the capital market regulator Sebi’s rules on takeovers would be breached.
The SUUTI holds 27% in Axis Bank — the third-largest private bank in India. However, the entire chunk of equity cannot be offloaded as there is a lock-in clause on 6% of the equity, following an earlier QIP.
Stake sale may fetch govt Rs 5,305 crore
SUUTI was formed over five years ago after the assets and liabilities of the then market leader, UTI Mutual Fund, were bifurcated into two. SUUTI had to warehouse the large equity holdings of that fund along with other assets including property besides 25 assured return schemes. Now, with the last of the tax-free bonds which were issued to unitholders close to being redeemed, the undertaking may be wound up in 2009.
A sale of Axis Bank holdings and some other assets controlled by SUUTI may have to be carried out to help the government realise Rs 9,000 crore, which it has budgeted for this fiscal. However, at today’s market price (Rs 679), the divestment may fetch the government only Rs 5,305 crore if it sells a stake of 21.76%. The government officials said a firm view is yet to be taken given the volatile market conditions.
A senior official said the timing of the sale would hinge on market conditions as the aim would be to maximise realisation for the government. In fact, the government could bargain for a higher amount if it opts for a negotiated sale as it would fetch a control premium for one of the best performing banks in the country. But that would have met with resistance.
source economictimes epaper
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Old July 31st, 2008, 04:25 PM   #3
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Govt to give Rs 1,000 crore more to LIC for Aam Admi Bima Yojana


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The government on Thursday decided to provide an additional Rs 1,000 crore to Life Insurance Corporation to cover another one crore rural landless households under the social security scheme 'Aam Admi Bima Yojana'.

The scheme will cover an additional one crore landless households by September 30, 2009 under the AABY to provide death and disability benefits to the head of the family or earning members of the family, Information and Broadcasting Minister P R Dasmunsi told reporters after the Cabinet meeting.

The scheme, which is being implemented through the LIC, was launched on October 2 last year.

The union government bears 50 per cent of the premium of Rs 200 per year per person and the state governments pays the rest of the premium on behalf of the beneficiaries.

Besides, the Cabinet also approved giving Rs 500 crore towards Social Security Fund maintained by LIC to provide 50 per cent share of premium Janshree Bima Yojana for all women self help groups credit linked to banks.

Dasmunsi said the decision will facilitate providing life and permanent disability cover to 2.5 lakh women SHGs under the scheme by March 31, 2009.

Janshree Bima Yojana was launched in August 2000 to provide life insurance protection to the rural and urban poor under various vocational groups.

The premium under the scheme is Rs 200 per member per annum, of which 50 per cent premium is paid by beneficiaries of the scheme and the rest pitched in by the government through the fund maintained by LIC.

At present, there are 45 vocational or occupational groups covered under the scheme.
source economictimes.com
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Old July 31st, 2008, 04:46 PM   #4
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Great start, sn1101. Indeed, there is alot of activity happening in these fields.





The List:
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1. Reliance Capital Asset Management (www.reliancemutual.com), a unit of billionaire Anil Ambani's Reliance Capital Ltd, managed 908.13 billion rupees ($21.37 billion) in June, more than 1.5 times than amount managed by its nearest rival. In December, the firm said Eton Park had agreed to pay 5 billion rupees to buy a 5 percent stake, valuing the firm at 13 percent of its assets then.

2. British financial services firm Prudential Plc has a 49 percent stake in ICICI Prudential Asset Management(www.icicipruamc.com), with India's top private-sector lender ICICI Bank holding the rest. The fund house managed 594.74 billion rupees in June.

3. Britain's Standard Life Investments holds a 40 percent stake in HDFC Asset Management (www.hdfcfund.com), with HDFC Bank Ltd, India's second biggest private-sector lender, the majority partner. The firm managed 527.11 billion rupees in June.

4. Government-run lenders State Bank of India, Punjab National Bank and Bank of Baroda, and state-owned Life Insurance Corp each own 25 percent in UTI Asset Management (www.utimf.com), India's oldest mutual fund firm. The fund house, which has scrapped a planned public offer, managed 507.71 billion rupees in June.

5. Birla Sun Life Asset Management (www.birlasunlife.com), which managed 410.75 billion rupees in June, is an equal joint venture between India's Aditya Birla Group and Canadian insurer Sun Life Financial.

6. French bank Societe Generale holds a 37 percent stake in SBI Funds Management (www.sbimf.com), with State Bank of India, India's largest bank, holding a majority stake. The fund house managed 301.32 billion rupees in June.

7. Franklin Resources Inc owns India's sixth-largest fund firm, Franklin Templeton Asset Management(www.franklintempletonindia.com), which managed 247.42 billion rupees in June.

8. India's Tata Group owns Tata Asset Management (www.tatamutualfund.com), which held assets worth 238.53 billion rupees in June. In March, the firm formed a venture with Britain's New Star Asset Management to manage New Star's India-dedicated funds.

9. Kotak Mahindra Bank Ltd owns Kotak Mahindra Asset Management (www.kotakmutual.com). The fund house, which has an alliance with T. Rowe Price to launch global funds, managed 211.83 billion rupees in June.

10. DSP Merrill Lynch Ltd, a unit of investment bank Merrill Lynch, holds a 40 percent stake in DSP Merrill Lynch Fund Managers (www.dspmlmutualfund.com), which controlled about 205.40 billion rupees in June. The remaining 60 percent is held by Hemendra Kothari, chairman of DSP Merrill Lynch, and two other firms. In January, BlackRock Inc, the largest publicly traded U.S. asset manager, said it would buy Merrill's 40 percent stake in the Indian asset manager. The deal is awaiting regulatory approval.
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Old July 31st, 2008, 05:02 PM   #5
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cheers zhiemi!

a result of the RBI rate hike..

HDFC raises lending rate by 75 basis points


Quote:
Housing Development Finance Corp said on Thursday it was raising its retail prime lending rates by 75 basis points, the latest in a series of rate hikes by lenders after the central bank tightened policy.

The increase will take effect from Aug. 1 and its floating home loan rates will carry a minimum rate of 11.75 percent, a 75 basis point increase, it said in a statement.

HDFC's move follows rate hikes by Punjab National Bank, Axis Bank and Jammu & Kashmir Bank. The central bank raised its key lending rate for the third time in two months on Tuesday, taking it up 50 basis points to 9.0 percent, the highest in seven years. It also raised the cash reserve ratio by 25 basis points.
ICICI Bank raises lending rate by 75 bps

Quote:
ICICI Bank, India's No 2 lender, on Thursday raised its main lending rates by 75 basis points after the central bank had raised its key rate earlier in the week. The corporate lending rate will rise to 17.25 percent and retail rate to 14.25 percent from July 31, the bank said in a statement.

It also raised fixed deposit rates by 75-100 basis points from August 1. The central bank raised its key lending rate for the third time in two months on Tuesday, increasing it by 50 basis points to 9.0 percent, the highest in seven years. It also raised the cash reserve ratio by 25 basis points.

Top mortgage lender Housing Development Finance Corp, Punjab National Bank, Axis Bank and Jammu & Kashmir Bank have already raised their lending rates.

Yes Bank raises prime lending rate by 50 bps

Quote:
Private sector lender Yes Bank has raised its prime lending rate by 50 basis points with effect from Friday, it said in a statement on Thursday. The effective rate will be 17 per cent.
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Old August 1st, 2008, 07:04 AM   #6
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‘SBI eyeing double digit growth in international biz’

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The State Bank of India (SBI), India's largest bank, has decided to expand its global operations and expects more than three-fold increase in its international business in the next five years, its Chairman O P Bhatt said.

"The Bank expects more than three-fold increase growth in its international business from seven per cent last year to 25 per cent in next five years," Bhatt said on Wednesday while launching the bank's first debit card in Canada.

"The focus of its international business would be relating to India. We have formulated strategic plans to cash Indias emerging opportunities," Bhatt said.

The SBI (Canada) would encourage Canadian investors, particularly NRI Indians to invest in Indian market. The bank was already offering loans for NRIs to own home in India, he said.

Harinder Takhar, Ontario Minister for Small Business and Consumer Affairs commended India's efforts to expand bilateral relations and urged Canadian entrepreneurs to invest in India.

"In today's challenging economic climate, it is more important than ever that we strengthen the competitiveness of Ontario's small and medium-sized enterprises and take advantage of emerging opportunities in India," he said.

"The Export Market programme, launched by the Ontario government, will help Ontario companies enter and expand into Indian emerging market, generating prosperity here and strengthening our presence on the world stage," Takhar said.

Arun Nagaran, President and Chief Executive Officer of the SBI (Canada) said that launching of new SBI debit card would meet the demand of Indo-Canadian customers.

"Customers can now carry out banking transactions and usage choice of point of sale transactions or bank machines with flexibility," he said.
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Old August 1st, 2008, 05:04 PM   #7
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Federal Bank eyeing strategic stakes in lenders


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Kerala-based Federal Bank is looking to pick up small strategic stakes in other lenders, including major ones, a top executive said on Friday.

The private bank has already acquired small percentages (up to 5 per cent) in three south-based banks, its Executive Director K F Harshan told reporters.

The three banks are South Indian Bank, Catholic Syrian Bank and Lakshmi Vilas Bank.

"These are financial investments. Existing regulations don't permit us to acquire beyond that (5 per cent)," Harshan said.

Federal Bank now intends to expand its branch network in the south and would approach the Reserve Bank for more licences, he said.

Currently, its has a 606-strong branch network. Asked whether Federal Bank was contemplating hiking its benchmark prime lending rate (BPLR), Harshan said the bank's asset-liability committee (ALCO) would be meeting next week to take a call on the matter.

"We are closely watching the markets...we will take a call next week when our ALCO meets."

The bank is targeting a 25 per cent growth in its deposits and expects its current account, savings account (CASA) to grow 35-40 per cent this fiscal, he said.

Currently, Federal Bank's CASA comprises 25 per cent of its total deposits.

The bank expects its credit growth to be in line with that of the industry, at slightly above 20 per cent.
source economictimes.com
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Old August 2nd, 2008, 06:54 AM   #8
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Max New York Life launches Max Vijay

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IT service provider IBM and Max New York Life Insurance Company on Thursday announced the launch of an integrated solution for policy issuance and administration for Max Vijay, a new business initiative introduced by Max New York Life.

IBM would help Max New York Life Insurance to deploy and transform its insurance policy processing platform and provide the end-to-end technology backbone for Max Vijay, an insurance product designed specifically for under-served segment of the society, a release said.

IBM will also provide service to various functions of Max Vijay, including insurance policy system administration, policy setup, new business processing and customer care.

For Max Vijay, IBM would use wireless hand-held devices, which enable data transfer through GPRS to the back-end system and facilitate on-the-spot issuance of insurance policies.

Aimed at making insurance available in every nook and corner of the country, Max Vijay would also be sold in neighbourhood stores, microfinance institutions and NGOs, among others. IBM would also provide disaster recovery services for the Max New Life's critical operations.
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Old August 2nd, 2008, 08:01 AM   #9
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PNB to launch debt-swap scheme

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Aiming to pulling out farmers from the clutches of money-lenders, Punjab National Bank (PNB) will soon launch debt-swap scheme. Private money lenders charge interest varying from 50% to 200% against the loan due to which farmers never come out of the vicious cycle of debt trap.

Actually, farmers keep on paying the interest while the principle amount remains the same. Under this new initiative farmers can avail the loan up to Rs 50,000 to repay the loan to money lenders.

Talking to FE after the state level bankers’ committee meeting (Haryana) JM Garg, executive director, PNB said, “Farmers don’t need to produce documents if they want to take loan upto Rs 25,000. If the amount is above 25,000 then bank will carry out the verification procedure. To ensure the money is being rightly used, the bank will procure the certificate from money lenders declaring that debt has been written-off. The scheme will be introduced first in northern region and later will be launched in other parts of the country. Bank will charge the interest rate based on prime lending rate (PLR) from farmers”. Last year PNB had disbursed agriculture loan of Rs 20,000 crore last year and has set a target of around Rs 25,000 crore for this fiscal. The finance ministry has decided that at least 3% of the target for agriculture in 2008-9 is to be earmarked for giving loans under ‘Debt Swap scheme’.

Bringing another initiative PNB is also set to launch concept of agricultural hubs across the country. Explaining about this venture Garg said, “Our branches are getting overburdened with handling loan processing applications in agriculture sector, which usually cause unnecessary delays.

To solve these problems various hubs will be introduced where specialised staff will take care of the applications which will simplify the cumbersome procedure. The idea is that one hub will cater to the cluster of 20 branches”.
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Old August 2nd, 2008, 03:21 PM   #10
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Bank penetration needs more branches, employees: E&Y

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A report on banking sector consolidation by Ernst & Young (E&Y) estimates that the banking sector in the country would require several more branches and employees to increase penetration by 2018.

The country requires an additional 11,600 branches and 142,000 employees by 2013 and an additional 20,300 branches and 250,000 employees by 2018 in order to achieve penetration level of 74% and 81.5% in 2013 and 2018 respectively, E&Y said in the report, which was released during a conclave on 'Indian Banking Vision 2010' in Mumbai.

Moreover, given that a major chunk of the workforce of the public sector banks is set to retire by 2018, banks should make efforts to re-skill and re-deploy their workforce to increase their productivity.

However, according to the report, there are some significant issues that need to be addressed to realize the benefits of bank consolidation for the economy as a whole.

First and foremost, some of the legal hurdles need to be removed to make public sector banks (PSBs), which still control about 68% of the banking sector, an active participant in the consolidation process. Especially, consolidation among PSBs could help realize true benefits of consolidation. These hurdles include bringing down the government ownership from mandatory 51% and amending certain clauses in Acts governing these banks to facilitate their merger. Secondly, on the co-operative banking side, issues of dual control should be resolved for a smooth merger of these credit institutions.

Although the banking industry in India has witnessed many mergers and amalgamations triggered by combination of government diktat and synergetic motives, the benefit of size earned in terms of assets and reach is rarely significant to be called 'consolidation', observed the report. A high level of fragmentation among Indian banks, as compared to some of the advanced economies of the world, still exists posing a severe threat to their profitability and viability of conducting business. Fragmentation is particularly high in the co-operative sector, where over 100,000 entities share just 4% of the total banking assets in the economy. The government should aggressively take steps to bring about large-scale consolidation within this sector by eliminating certain regulatory impediments to create a conducive environment, suggested the report.

Thus, by preserving their rural reach and local feel, the government can promote its big-ticket agenda of financial inclusion.
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Old August 2nd, 2008, 03:28 PM   #11
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Tata Capital to enter home loans business

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Tata Capital Limited, a wholly-owned subsidiary of Tata Sons Limited, plans to enter the booming home loan market by March 2009, its Managing Director and CEO, Mr Praveen P Kadle, has said.

“Although we will be a late entrant in this market, we see good business opportunities in offering home loans. We hope to start this by March next year”, Mr Kadle said here.

Tata Capital, a non-banking finance company, had commenced its operations in 2007. This had marked the entry of Tata Group into a host of new financial services. Currently, the company was capitalised at about Rs 2,000 crore and offered suite of products across multiple financial domains—personal loans, car loans, distribution and broking, wealth management, SME Finance, capital markets, private equity and infrastructure finance.
PE Fund
Quote:
Mr Kadle also said that Tata Capital would by end-September launch its first private equity fund targeted at opportunities in mid-sized companies. While the size of the fund was yet to be finalised, indications are that the initial fund size may be around $ 250 million. Plans are afoot to also launch a venture capital fund focusing on the technology space (information technology/telecom).

Currently, the balance sheet size of Tata Capital is around Rs 4,000 crore. On whether the company would look at inorganic growth, Mr Kadle noted that most of the opportunities here were expensive. “Indian valuations are expensive. Inorganic growth may not be attractive, but that does not mean we will not look at inorganic growth”, he said.
Insurance broking
Quote:
Meanwhile, Tata Capital would soon foray into insurance broking. “A subsidiary of Tata Motors has got licence for insurance broking from IRDA. This company would eventually come under Tata Capital. We will also get into commodities broking soon”, Mr Kadle said.

On whether Tata Capital would consider listing of its shares in the coming months, Mr Kadle said that the company was not looking at listing now.
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Old August 3rd, 2008, 11:10 AM   #12
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India holds huge market potential for Islamic banking: study

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New Delhi: Given favourable regulatory conditions, India holds promising growth opportunity for Islamic finance institutions, whose asset base globally is expected to more than triple to $1 trillion by 2016, according to a study by market intelligence and data analysis services provider Grail Research.
Islamic banking is already fast gaining prominence among the global financial institutions, especially in the backdrop of the banking sector woes impacting the markets like the US and UK and the concept has a huge potential market in India as well, according to market intelligence and data analysis services provider Grail Research.
The study finds that India has the potential of emerging as a significant market for Islamic banking institutions, provided there is a favourable change in regulatory environment and increased awareness among Muslims and India as a whole.
“You need to look no further than at the profitability of Saudi banks (the world’s highest) for reasons why Islamic finance will have strong interest globally as a growth engine for financial services,” Grail research founder and CEO Colin Gounden said.
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Old August 5th, 2008, 01:06 PM   #13
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ECGC to venture in domestic credit insurance

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Export Credit Guarantee Corporation, insurer for the exporting firms, on Tuesday said it is foraying into the domestic credit insurance business.

ECGC, which ranks as the world's fifth largest credit insurer, has already approached the regulator for approval of its new business.

"The domestic credit insurance product has been filed with the Insurance Regulatory and Development Authority for final approval, which is expected anytime," ECGC Chairman and Managing Director AV Muralidharan said in a statement in New Delhi.

The corporation has earned a gross premium income of Rs 668.36 crore during 2007-08 as compared to Rs 617.66 crore in the previous year. It achieved recoveries of Rs 161.50 crores during the year. It has paid a total dividend of Rs 162 crore for the last fiscal to the government.

It earned an after tax profit of Rs 479.43 crore for 2007-08 against Rs 369.70 crore in the previous year.

As much as Rs 100 crore was added to the equity base of the corporation, augmenting the paid up capital to Rs 900 crore.

Muralidharna said ECGC would be giving a big push to its its factoring business. Factoring covers from the corporation help exporters in getting post shipment finance with 100 per cent credit risk insurance protection.
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Old August 5th, 2008, 01:06 PM   #14
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Max New York Life looks at low-income customers

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Max New York Life Insurance Co plans to tap the lower middle-class to boost premium income in a market where insurance penetration is still one of the lowest in Asia, officials said.

"We believe there are 100 million households who are between aspirers and seekers," Deputy Managing Director, Rajesh Sud told reporters while launching a new insurance product with low and flexible premium payment options.

The company plans to garner 10 per cent of the potential market of 100 million households in the next few years, he added. India's total insurance penetration was at 4.8 per cent but the growth potential is seen huge as individual income rise along with awareness levels.

Max New York Life will invest 95 per cent of the investment corpus generated through premiums from this product in government debt while the balance in equity, he said. "We want to avoid exposing these policy holders to the volatility of the stock market," he added.

Max New York Life Insurance is a 74:26 per cent joint venture between Max India Ltd and US-based New York Life International.

The company was set up with a capital of 12.32 billion rupees and the founders have committed to invest another 24 billion rupees over the next four years, Sud said.

It earned a premium income of 15 billion rupees in 2007/09 and 4.25 billion rupees in the three months to June, Sud said.
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Old August 5th, 2008, 01:41 PM   #15
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MF houses eye non-metros to beat AUM squeeze

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Choppy markets and a dent on assets under management (AUM) have forced the mutual fund (MF) industry to look beyond the metro cities. They are now on the prowl to grab a share of the semi-urban and rural markets across the country.

In a bid to expand its reach in the country, UTI Mutual Fund (UTI MF) is going to set up over 650 outlets in the next 6-8 months. Of these 650 outlets, 200 will be UTI Financial Centres (UTI FCs) and the other 450 will be UTI franchise offices in all major districts of the country.

Also joining the fray are Birla Sun Life Mutual Fund (BSLMF) and Reliance Mutual Fund (RMF) which are set to open 100 outlets by March 2009 to promote their mutual fund schemes.

July was a bad month for MFs, with AUMs slithering for the second successive month and declining over 6%. The unstable markets have also kept investors away from funds as they wait for the markets to stabilise.

Reliance, ICICI Prudential, UTI MF have all witnessed declines in AUM last month. The expansion of reach to touch more potential investors and efforts to increase awareness of mutual funds as a safer investment avenue have, therefore, become a priority for these fund majors.

Debashish Mohanty, country head – retail sales, UTI MF, said, “Our main aim is to promote and educate investors on putting their in MFs. We are going to set up 450 UTI franchise offices in all the major districts of the country, which will train people and where we will be promoting and selling UTI MF. In the rest of the 200 UTI FCs, we will look after the mutual fund and portfolio management services (PMS).”

ICICI Prudential Mutual Fund, on the other hand, has already opened over 245 centres in different cities in the country in the last three months. Senior officials from the company said, “We want to penetrate in all the parts of the country. In March this year, we had outlets only in 80 cities, which increased to 245 centres by July. We are not going to slow down the speed of opening the outlets, but we don’t have a specific target.”

Anil Kumar, CEO of BSLMF, said, “Till now, we had only over 30 branches but by March 2009 we are going to open 100 more. Our main aim will be to educate investors how MFs can become another asset class. In all the centres that we are planning to open, we will be providing education programmes and awareness regarding MFs and its importance as an investment mechanism.”
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Old August 8th, 2008, 10:51 AM   #16
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Bharti AXA General plans capital infusion of Rs 645 cr

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Bharti AXA General Insurance, the latest entrant in the general insurance business in the country, is planning capital infusion of Rs 645 crore over the next five years.

Announcing the commencement of its operations in Mumbai, Milind Chalisgaonkar, chief executive officer said the general insurance market in India has strong growth potential.

He said the two joint venture partners, namely, Bharti Enterprises which has 74 per cent stake in the company and AXA, a major insurance player internationally holding 26 per cent stake have already invested Rs 130 crore in the venture.

The insurance regulations require minimum capital of only Rs 100 crore.

Responding to queries on the quantum of business the company is targeting, he said he would not like to make forward looking statement. He also pointed out there is no formula that a company could generate a certain level of business based on the capital invested.

He, however, indicated a company could possibly generate business which is four to five times the capital.

There are 25 crore middle class people. The parent company Bharti has 72 million consumers and Bharti group's reach would be leveraged to grow business, he said.

He said the company will offer products to cover property, motor, health, personal accident across rural, urban and commercial segments.

It is the third JV Bharti has entered into with AXA. Earlier, the company had entered into JV with AXA for life insurance and for an asset management company.
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Old August 8th, 2008, 11:00 AM   #17
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R-Money eyes Rs 10,000 cr currency export

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Anil Ambani group's Reliance Money is eyeing to "export" currencies worth about Rs 10,000 crore in the current fiscal a four-fold jump from previous year's figure as part of its money changing and transfer business.

Reliance Money, the brokerage and financial products distribution unit of ADAG's financial services arm Reliance Capital, is looking for a significant growth in its money changing and transfer business, the company CEO Sudip Bandyopadhyay said in Kolkata.

He said the company exported currencies worth Rs 2,500 crore in the last fiscal and is targetting Rs 10,000 crore in current financial year.

The size of the Indian export currency market was around Rs 40,000-50,000 crore to and was growing further due to increased tourist inflows and trade activity, he said.

When Indian rupee became fully convertible, then currency movements would increase and the market would grow exponentially, he added.

On money transfer, he said, Reliance Money was the largest partner of Western Union. The target was to transact Rs 2 lakh per month by the end of the year, he said.

Meanwhile, Reliance Money had floated a company in the Gulf, Riyada Reliance Money, with a view to sell global products to foreign clients.

He said the company would seek membership of Saudi Arabia's Takaful stock exchange to conduct business there.

Bandyopadhyay added that the Riyadh-based firm would make an issue to raise Rs 240 crore by way of off-loading 74 per cent stake to institutional investors on private placement basis.

To further expand its international presence, the company is also eyeing to acquire an entity in the Middle East, the Reliance Money CEO said.
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Old August 8th, 2008, 11:04 AM   #18
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Bank of Maharashtra plans 8 new branches in North India

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The new head of Bank of Maharashtra (BoM) for Chandigarh Region, PK Aggarwal, has special vision for this region and plans to open eight new branches in Punjab, Haryana and Himachal Pradesh in the current fiscal to increase its focus in north.

PK Aggarwal, who has taken over as assistant general manager from Anil Thakur now promoted as DGM, started his career from Chandigarh and now had come as head of bank operations in this region as such had special plans for the region. The AGM told during an interview that Chandigarh region holds extensive scope for growth as economy of this region is most vibrant and Chandigarh itself was most banked city in the country.

Talking about the plans of BoM for the Chandigarh region, he said that the eight new branches slated to be opened this fiscal include two branches in Himachal Pradesh at Una and Mandi, two in Gurgaon in Haryana, and one each at Chandigarh, Ludhiana, Jalandhar and Zirakpur in Punjab. Aggarwal told that at present the bank had 18 branches in Punjab, 17 in Haryana, three in Chandigarh, two in Jammu and Kashmir and one in Himachal Pradesh. He said all these 41 branches under Chandigarh region were CBS branches offering connectivity of all branches for the convenience of customers.

He informed that during year 2007-08, the BoM had a business of about Rs 20,00 crores from Chandigarh region with Rs 1,080 advances and Rs 920 deposits. He said that the bank was projecting a growth of about 35% this fiscal which would take total business to Rs 2,700 crore having advances of Rs 14,00 crore and deposits of Rs 1300 crore.
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Old August 8th, 2008, 07:11 PM   #19
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Indian Bank to launch exclusive facility for women


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Indian Bank is set to launch its special 'Micro State Branch' here exclusively for women Self Help Group (SHG) members and other women customers to avail easy banking services. The bank, the lead bank in the district, would launch the facility in the third week of this month as the willingness to operate savings accounts with Indian Bank in rural areas, especially among women, was now on the rise, Assistant General Manager and head of the Dharmapuri Circle G Muthappan told reporters yesterday.

Next to metros, Dharmapuri launch would be the first in rural area for the bank. Already a micro credit kendra is functioning in Hanumanthapuram village in Palacode taluk. Besides SHGs, general banking also would be carried out in the Micro State Branch. The banking service would be given exclusively for women in Dharmapuri, he said.

As the district administration was keen on enhancing the revolving funds for SHGs, the new branch would support the members of SHGs to promote their economic status through banking, he said adding that it would help avoid delay in processing SHGs' business.

Muthappan also said more than 6,500 women SHGs were functioning in the district, for which Rs 90 crore had been given as loan for economic development. With this facility, women could have general banking, jewel loan and other services under one roof.
source economictimes.com
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Old August 9th, 2008, 07:49 AM   #20
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Govt to revamp Punjab & Sind Bank, pave way for IPO

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The government will restructure the capital base of unlisted state-run lender Punjab and Sind Bank to improve valuations before it launches an initial public offer, a minister said on Friday.

Kapil Sibal, a senior minister in charge of Science and Technology, said the cabinet has approved a capital restructuring plan that involves conversion of a major portion of the bank's equity into bonds and preferance shares.

The government will convert 1.6 billion rupees of equity into tier-I debt and another 2 billion rupees of equity into preference shares under tier-II debt, he told a news conference after a cabinet meeting.

The bank will have an equity capital of 1.83 billion rupees after the restructuring, Sibal added.

The capital restructuring will help the bank expand in compliance with Basel-II requirements, and get a "reasonable" premium in an initial public offering, minister Kapil Sibal said.

Punjab and Sind Bank reported a 60 per cent increase in profit to 5.15 million rupees in the year ended March 2008.
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