18 November 2000

Standard Life increases its stake in HDFC Bank
Mumbai: Standard Life, the insurance partner of HDFC, has increased its relationship with HDFC by stepping up its holding in HDFC Bank. It recently purchased close to 1.5 per cent of the bank's equity from Chase Capital Partners, who were strategic investors in the bank.

The transaction was concluded through the stock market around 10 days ago at the then prevailing market price of around Rs 250 and has reportedly given Chase Capital a profit of over Rs.60 crore.

15 November 2000

Citibank pips others to the post: IMD mop-up
New Delhi: Despite being short of its self-imposed target, Citibank, with an impressive collection figure of $685 million, was way ahead of all other banks in the sweepstakes for the State Bank of India-sponsored, India Millennium Deposit programme.

Following Citibank in the pecking order were, HSBC ($550 million), Stanchart ($480 million), Credit Llyonnais ($400 million ) and ABN-AMRO ($385 million).

The collection figures of domestic banks were not available.

For the MNC banks the incentive to collect the deposits for the IMD was SBI's promise of giving 50 per cent the amount collected by the arranger banks back to them as a loan at a concessional interest rate of 10 per cent.

13 November 2000

Metlife partners Pallonji Mistry for insurance venture
New Delhi: Construction magnate, Pallonji Mistry, has tied up with J&K Bank and other strategic investors to bring in US-based insurance major, Metlife, for a joint venture into the insurance sector.

In a unique holding pattern Metlife will get a 26 per cent stake in the venture and will be the single largest shareholder with management control, while the Indian partners will pick up a maximum of 25 per cent stake. While the agreement between the partners is expected to be signed shortly, Arthur Andersen is said to be preparing the business plan for the venture.

Though a business plan has been prepared by Metlife, one of the things that the global consultant has been asked to do is look at the launch strategy and the phases in which products will be launched.

Although the initial equity of the life insurance venture is expected to be about Rs 100 crore as prescribed by the IRDA, the partners expect to pump in about Rs 300 crore in the venture over the next two-three years.

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