17 August 2002
Icra reaffirms LAAA rating to IDFCs Rs 1,000-crore bonds
Mumbai: Credit rating agency Icra on Friday reaffirmed highest safety LAAA rating to the Rs 1,000 crore bond issue of Infrastructure Development Finance Company.
Govt to discuss debt-swap of state loans with RBI by Sept
New Delhi: The government will take up with the Reserve Bank of India the issue of retiring high-cost debt of states in exchange for low-cost debt papers as part of efforts to reduce their debt burden which has mounted to 23.93 per cent of GDP.
RBI reviews credit issues with banks
Mumbai: The Reserve Bank of India on Friday met with the chief executives of commercial banks to review progress pertaining to credit deployment, particularly to the priority sector.
Sportspersons may be allowed to have EEFC a/c
Mumbai: Eminent sportspersons may soon be included in the list of professionals who can keep their forex earnings in bank accounts overseas like other professionals. Currently, sportspersons do not come under the RBI's existing definition of of professionals who have now been allowed to retain 100 per cent of their earnings in Exchange Earners Foreign Currency Accounts (EEFC).
GIC, insurance Bills get President's okay
New Delhi: The President has given his assent to the General Insurance Business (Nationalisation) Amendment Bill, 2002, the Insurance (Amendment) Bill, 2002, and the Delhi Municipal Corporation (Validation of Electricity Tax) Act and Other Laws (Repeal) ..
Norms for banks funding PSU bidders eased
New Delhi: Bank financing for PSU disinvestment will now be outside the five per cent ceiling on capital market exposure. The, relaxation will, however, be subject to RBI clearance on a case-by-case basis.
Bank-guaranteed FI loans to attract 20% risk weight
Mumbai: The RBI has clarified that the loan extended by a financial institution (FI) against the guarantee of a bank would attract a risk weight of 20 per cent in computation of CRAR (Capital to Risk-weighted Assets Ratio) of the lending FI.
RBI okays stripping of securities redeemable up to 20 years
Mumbai: The RBI Working Group on Securities Trading for Registered Interest and Principal of Securities (Strips) has said the eligible securities for stripping may be restricted to those whose redemption dates fall between zero and 20 years, with a with a majority of them falling within the 12-15 years range.
ICICI Bank opens extension counter in Mysore
Bangalore: ICICI Bank on Friday opened an extension counter and ATM in Mysore and its first branch and ATM at Dharwad. Cricketer Javagal Srinath opened the Mysore counter, a bank release said.
PSU banks tapping staff for business
New Delhi: Turn your employees into your customers before your competitors do so. That is the tenet that some bankers seem to be working on as they are fast cashing in on the idea of extending `clean overdraft facility to staff members'.
Eight PSBs seek nod to raise Rs 1,410 crore via pvt placements
New Delhi: Public sector banks are coming out with a slew of bond issues to shore up their tier II capital. As many as eight banks have sought clearance to raise an aggregate Rs 1,410 crore worth of funds via the private placement route over the next few months.
FIs, banks to exchange data on loan defaulters
New Delhi: Financial institutions and banks have initiated moves to exchange data on loan delinquency with a view to tightening due diligence procedures. Banking sources said that currently such data was treated as confidential.
Union Bank files suits against 30 defaulters
Mumbai: Union Bank of India has initiated legal proceedings against 30 of its clients, taking advantage of the recent ordinance promulgated by the Government that enables banks and financial institutions to seize assets against bad loans.
Ordinance to be repromulgated
New Delhi: The Cabinet on Friday approved the repromulgation of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Ordinance, 2002.
ING stake hike in Vysya Bank okayed
Hyderabad: Banque Brussels Lambert's (BBL) proposal to hike its holding in Vysya Bank from 30 per cent to 49 per cent for a consideration of Rs 225 crore has been cleared by the Government.
RBI cracks down on terror funds
Mumbai: The Reserve Bank of India has finally come out with the 'know your customer' guidelines to check money laundering and funding of terrorist organisations.
New Bima Nivesh may be snuffed out by LIC
Mumbai: Yet another Life Insurance Corporations (LIC) popular products, `New Bima Nivesh has been put on the hit list. Few months ago, it was `Jeevan Shree, and now LIC is likely to withdraw New Bima Nivesh too, one of the most popular single premium product. Single premium policies fetched almost 40 % of premium income for LIC until recently.
RBI eases norms for PSU sell-off financing
Mumbai: In a major move for funding public sector unit divestment by scheduled commercial banks, the Reserve Bank of India (RBI) has said it will consider on a case-by-case basis relaxing the ceiling of 5 per cent on banks exposure to the capital market to enable them to finance the programme.
The relaxation will be made so as to keep the exposure of banks to the capital market in all forms, net of its advances for financing of acquisition of PSE shares within the regulatory ceiling of 5 per cent, the RBI said in a circular to all scheduled commercial banks.
S B Mathur takes over as chairman of LIC
Mumbai: Sunil Behari Mathur has taken over as the chairman of the Life Insurance Corporation of India (LIC).
Mathur is a qualified chartered accountant. He joined LIC in May 1967 as a direct recruit officer. Prior to his taking charge as the chairman, Mathur was the executive director in charge of marketing and international operations.
He had earlier held various prestigious positions in LIC from senior divisional manager, in charge of the Gwalior division, to chief of corporate planning at the central office, general manager of LIC International EC, Bahrain, zonal manager in-charge of the western zone, before taking charge as executive director.
During his tenure as general manager LIC International EC, an offshore subsidiary of LIC, from June 1998 to December 2000, the companys asset base increased from $24 million to $54 million. The company also expanded its operations in Qatar and Dubai 10 years after commencement of operations in the Gulf in June 1989.
Under his leadership, the western zone, LICs largest zone, has shown unprecedented growth in business with total first premium income, registering an increase of around 500 per cent in fiscal 2001-02. The zone has also excelled in customer servicing and application of technology and is operating at the lowest cost ratio in LIC.
Mathur was sponsored by USAID for a training programme on housing finance at the Wharton Business School, Philadelphia, in April-May 1992. He has also attended a programme on globalisation, technology and management of change conducted by the Indian Institute of Management, Bangalore, jointly with Sloan Business School, MIT, Boston, in April-May 1997.
Mathur is a voracious reader and has attended various seminars at national and international forums. Under his able leadership, LIC is poised to scale new heights in all facets of performance.
16 August 2002
Panel for major changes in RRB Act
Kolkata: The RRB Act Amendment Committee, headed by M.V.S. Chalapati Rao, Managing Director of Nabard, which submitted its report recently, has suggested amendments to several provisions of the Act.
Corporation Bank cuts home loan rates
Mangalore: Corporation Bank has reduced its interest rates on housing loans on a floating rate basis to 9.5 per cent per annum from 10.5 per cent for loans of a maturity period up to five years.
Rural business of PSU insurers to be transferred to new co
The rural insurance business of the four public sector general insurance companies is expected to be transferred to the proposed Agricultural Insurance Corporation of India.
`AA+' for Larsen & Toubro NCD issue
Mumbai: The non-convertible debenture (NCD) issue of Larsen & Toubro, amounting to Rs 300 crore, has been assigned `AA+' rating by Crisil.
KMPL debt programme gets `P1+'
Mumbai: Crisil has rated Kotak Mahindra Primus Ltd's (KMPL) Rs 400-crore short-term debt programme `P1+' (enhanced from Rs 350 crore). All existing long-term non-convertible debenture issues are AA.
'P1+' for Kotak Mahindra Fin PTC
Mumbai: Crisil has assigned the highest short-term and long-term ratings to the Rs 114.85 crore `Senior Series' pass through certificates (PTCs), issued under the securitisation programme of Kotak Mahindra Finance Ltd (KMFL).
Exim Bank ties up with IIT Mumbai
Mumbai: Export-Import Bank of India (Exim Bank) and IIT Mumbai have signed a memorandum of understanding to promote and market the latter's technologies overseas. The two institutions have agreed to leverage their respective strengths and exchange regular information on research, technology, trade, business and investments opportunities to facilitate increased co-operation for commercial exploitation of various technologies in overseas markets, said a press release
StanChart card for cricket lovers
Mumbai: Standard Chartered Bank has now tied up with Air Sahara to introduce `Air Sahara Standard Chartered Cricket Card', to celebrate India's most watched sport.
IRDA to clear brokers' norms next month
New Delhi: The Insurance Regulatory and Development Authority (IRDA) would finalise the guidelines pertaining to brokers and consultants by September-end and start granting them licences from the end of October.
Bank officers' fedn calls for strike
New Delhi: The Federation of Bank of India Officers' Associations (FBOIOA) has called for a day's strike towards the end of this month to express its revolt against what it called `the management's unreasonable, unilateral and vindictive attitude' towards.
Birla Sunlife To Target Rajasthan Youth
Mumbai: Birla Sunlife is planning to take on the Rajasthan market in life and non-life insurance sectors in a big way by targeting the young employed consumer group. Full story
Professionals allowed to retain 100% of forex
Mumbai: The RBI on Thursday permitted individual professionals to keep up to 100% of their foreign exchange earnings from consultancy and other services rendered to persons or bodies outside India, in their foreign exchange earners foreign currency account.
UTI investors may get dividend tax relief
New Delhi: The government is considering restoring tax-free status on dividend income earned by unit holders of Unit Trust of India. This option was discussed at a Group of Ministers meeting on UTI restructuring recently. However, a final view is yet to be taken.
Corporation Bank slashes home loan rates
Mangalore: Corporation Bank has reduced its interest rates on housing loans on a floating rate basis to 9.5 per cent per year from 10.5 per cent for loans of a maturity period up to five years. The rate of interest is 9.5 per cent for the same period on a fixed rate basis.
The new rates will be effective from 16 August 2002. The bank has already notified a special offer to waive processing charges on housing loans till 30 September 2002. The rate of interest for loans with a maturity period of above five years but below 10 years will be 10 per cent on a floating rate basis and 10.25 per cent on a fixed basis.
For loans with a maturity period of above 10 years with a maximum maturity of 25 years, the rates will be 10.5 per cent on a floating basis and 10.75 per cent on a fixed basis.
The loans, which are available for buying, building, extending or renovating houses, are to be repaid at a low-equated monthly instalment (EMI) calculated on the basis of a daily reducing balance. Customers can also choose between floating and fixed rates of interest. The EMI for a loan of 25 years, for instance, is Rs 938 per lakh on a floating basis and Rs 955 on a fixed basis.
HSBC in bancassurance, insurance broking
Mumbai: The HSBC group plans to get into insurance distribution through both the corporate agency as well as through the insurance broking channel.
While the bank plans to become a corporate agent through the bancassurance route, the broking business will be undertaken through a separate affiliate.
A couple of weeks ago the Indian parliament had passed the IRDA Act Amendment Bill, which enables banks to get licensed as corporate agents and sell insurance products through their branches.
The Bill also recognises brokers as intermediaries, which are allowed to distribute products of multiple companies, unlike corporate agents who can sell products of only one life and one non-life company.
At present, HSBC sells insurance products of Tata AIG Life and General Insurance through a separate company, HSBC Insurance Services.
Globally, HSBC is among the top 12 insurance broking firms. In India, the group has been among the first movers in institutional distribution of insurance.
HSBC country head (personal financial services) Vivek Kudva says there will be no conflict of interest in the bank being a dedicated corporate agent and having stake in an insurance broking company.
HSBC will, however, have to rope in multiple partners since the IRDA has capped the maximum foreign equity in a broking company at 26 per cent.
14 August 2002
Finmin promises to shoulder UTIs liabilities
New Delhi: Cash-strapped UTI has received a blank cheque from the finance ministry. At a meeting here on Monday, between the chief of the beleaguered mutual fund chief M Damodaran and Finance Secretary S Narayan, UTI was promised all the money required to meet its liabilities.
Allahabad Bank plans Rs 100-cr IPO in December
Kolkata: Allahabad Bank is planning to tap the capital markets by coming out with an initial public offering (IPO) of Rs 100 crore by December this year.
Companies take refuge in MFs
With traditional modes of investments such as US-64 and bank deposits no longer paying off, even corporates are faced with fewer investment options than before.
Moser Baer plans insurance foray with Vijaya Bank, PNB
New Delhi: Optical and magnetic storage maker Moser Baer India Ltd is likely to partner state-owned Vijaya Bank and Punjab National Bank (PNB) in their proposed joint venture in life and general insurance with Zurich, banking sources said.
SBI slashes housing rates
Mumbai: Housing loans are now moving into single-digit figures. And this is an Independence Day gift from the country's largest bank - State Bank of India. Effective August 16, SBI will cut its housing loans by 50 basis points across the board -
Aviva to expand operations in eastern States
Mumbai: In the next two months, Aviva Life Insurance, the joint venture between Dabur and UK-based CGU, will complete its product portfolio by introducing term products, pension-linked insurance and group insurance schemes. T
Can Jalan get the horse to drink?
Mumbai: On a day short (August14) of 55 years of India's Independence, the central board of RBI will be meeting at Mumbai to finalise the accounts for the year ended June 30, 2002. The RBI's profits are reckoned at Rs 10,300 crore.
LVB star performers
Hyderabad: Lakshmi Bank (LVB), the Karur-based bank focussing on constantly training its human resources, has selected the star performers among the managers of its branches spread across the country for the year 2001-02.
SBI cards for FD holders
Coimbatore: SBI Cards and Payment Services Private Ltd, the credit card subsidiary of the State Bank of India, has recently introduced two new schemes - SBI Advantage Card to the bank's fixed deposit customers and SBI International Card for its home loan borrowers.
10th Plan power capacity to fall short of target
New Delhi: The government of Indias targets on capacity addition in the power sector during the Tenth Five-Year Plan period (2002-07) is unlikely to be met according to a report published by CRIS-INFAC, a subsidiary of The Crisil.
Crisil gives top ratings to KMFL Rs 115-crore PTCs
Mumbai: Kotak Mahindra Finance Ltds Rs 114.85 crore senior series pass through certificates backed by commercial vehicles loan and hire-purchase receivables have been assigned the highest short- and long-term ratings by the Crisil.
OM Kotak Life plans to lower assured returns
Mumbai: OM Kotak Mahindra Life Insurance Company proposes to lower the assured returns on its products next month.
NHB to issue 7.15% capital bonds today
Mumbai: The National Housing Bank will be launching a 54 EC capital gains bonds issue on August 14, 2002.
Corporation Bank launches Internet banking
New Delhi: Corporation Bank has launched three technology initiatives, including facilities to pay insurance premia of Life Insurance Corporation (LIC) and telephone bills of Bharat Sanchar Nigam Ltd (BSNL) through the Internet, while introducing Internet banking for non-resident Indians.
The payment of LIC premium will be free of cost and hassle-free, says LIC executive director S K Sakhuja.
BSNL general manager K J Chacko says the majority of 2.70-lakh telephone subscribers of Dakshina Kannada Telecom District can use this facility.
SBI to cut housing rates by 50 basis points
Mumbai: Effective 16 August 2002, State Bank of India (SBI) will cut its housing loans by 50 basis points across the board - the second in a months time. This, according to officials, makes SBIs housing loans the most inexpensive in the market.
The banks floating rate deposit up to five years has now been reduced to 9.50 per cent (10 per cent) while on fixed loans the bank charges 9.75 per cent (10.25 per cent).
For loans above five years to less than 10 years, the floating rate is now 10 per cent (10.50 per cent) and fixed rates for the same tenure is 10.25 per cent (10.75 per cent).
For tenure of 10 years to 20, on floating the rate is 10.5 per cent (11 per cent), while on fixed the rate is 10.75 per cent (11.25 per cent).
Besides the rate cuts, the bank has also waived its processing charges of half a percentage, for a limited period.
13 August 2002
Tata MF one-day IPO fetches Rs 103.65 crore
Mumbai: Tata Mutual Fund on Monday announced that the one-day initial public offer (IPO) for its new Tata Short Term Bond Fund has been concluded with a mobilisation of Rs 103.65 crore on August 8.
RBI seeks details on DBL directors firms
Mumbai: RBI has reportedly asked the Thrissur-based Dhanalakshmi Bank Ltd to submit a clean chit from the Department of Company Affairs about the companies of Mr Rajmohan Rao, a director of the bank, and his associates.
Sundaram MF plans debt fund with long-end maturities
Chennai: Sundaram Mutual Fund has lined up a debt fund with sub-plans carrying three-, five- and ten-year average maturities, aimed largely at wholesale investors.
NHB to securitise Rs 1,000-crore housing loan this fiscal
Mumbai: National Housing Bank is planning to securitise the home loan portfolio worth Rs 1,000 crore, including that of Citibanks Rs 150 crore, in the current fiscal.
KMFL hits mart with Rs 100-crore debt
Mumbai: Kotak Mahindra Finance Ltd on Monday entered the market to raise over Rs 100 crore by way of securitising hire purchase and receivables from loans for financing commercial vehicles.
United India ropes in 5 TPAs; cashless settlement from Sept
Chennai: United India Insurance Company Ltd has roped in five companies as Third Party Administrators for its mediclaim policies.
Nabard to foray into consultancy services
New Delhi: Nabard plans to make it big in consultancy services. The institution is trying to cash in on its expertise in rural development by offering consultancy service in agricultural and allied activities.
HDFC Life crosses Rs 1,000-cr mark in group insurance
Mumbai: HDFC Standard Life Insurance Company's total life cover in its group insurance business has now crossed Rs 1,000 crore as sum assured. This has primarily been led by the performance in the company's group term insurance plan, according to the sources.
Rs 500 cr more for US-64
New Delhi: The Government is set to provide a second tranche of Rs 500 crore to the Unit Trust of India (UTI) as part of the bailout package to enable the fund to meet its payment obligations in the US-64 scheme.
Banks begin to lodge crop insurance claims with GIC
New Delhi: Banks have begun lodging crop insurance claims with the General Insurance Corporation of India (GIC) on account of failure in the kharif crops.
Union Bank to spend Rs 150 cr on tech upgrade
Mumbai: Union Bank of India is implementing a centralised core banking solution in the sphere of technology upgradation by investing Rs 150 crore in the next two to three years. The bank had tied up with two IT majors, Wipro and Infosys for the technology upgradation.
J&K Bank gets State nod for foreign partner
Srinagar: The Jammu and Kashmir Government has given in principle clearance to the proposed induction of a foreign partner by J&K Bank Ltd through a strategic sale of equity. "The State Government has given us the go ahead to scout for a foreign partner.
Rs 1,000-cr bond issue from NHB
Mumbai: The National Housing Bank (NHB) is expected to raise around Rs 1,000 crore through the issue of capital gains bonds, at a coupon rate of 7.15 per cent per annum.
MF investments have crossed Rs 100,000 crore, shows sebi study
Mumbai: Sebi study on the unit holding pattern of the mutual fund industry says that there are 3.08 crore investors in the industry, holding units worth Rs 1,00,594 crore as on March 31, 2002.
Pass through certificates may get listed on NSE
Mumbai: Pass through certificates (PTCs) of mortgage-backed securities, may soon be listed on the National Stock Exchange. The National Housing Bank is working on a plan that is expected to integrate the housing finance sector with the capital market.
SBM reduces deposit rates
Bangalore: State Bank of Mysore (SBM) has reduced rates on domestic term deposits and on NRE deposits by 25-50 basis points with effect from August 12, 2002. The new rates for domestic term deposits will be 5 per cent for 7-14 days.
BoI cuts deposit rates again
Mumbai: For the second time in a matter of just 15 days, Bank of India has cut its deposit rates by around 25-75 basis points with effect from August 16.
Saraswat co-op bank board removes MD
Mumbai: In a surprise development, D.R. Shirodkar, Managing Director, Saraswat Cooperative Bank Ltd, a multi-state urban co-operative bank, has been removed by the bank's board.
Board ousts Saraswat Bank MD Shirodkar
Mumbai: D R Shirodkar, the managing director of Saraswat Cooperative Bank Ltd, a multi-state urban cooperative bank, has been ousted by the banks board.
According to officials, the bank board, at its meeting on 10 August 2002, passed a no-confidence resolution against Shirodkar.
While officials attribute administrative reasons for the managing directors removal, sources in the bank allege political motives behind the boards action.
There were differences between the board members and Shirodkar over the delay in the implementation of core-banking solutions provided by i-flex, says a bank official. The board has held Shirodkar responsible for the delay in the implementation of the core banking solutions provided by i-flex Solutions.
However, a bank source alleges that Shirodkar, who has been with the bank for the past 30 years, refused to follow directions from political bosses.
S K Banerjee, who has taken over as the banks managing director, says: Shirodkar has ceased to be an employee of the company on account of various administrative issues. He, however, declines to clarify as to what these administrative issues were.
The bank has also decided to proceed against i-flex Solutions for the delayed implementation of the core banking solutions and filed a notice against the company through Little and Company.
HDFC Life crosses Rs 1,000-crore mark
Mumbai: HDFC Standard Life Insurance Companys total life cover in its group insurance business has now exceeded the Rs 1,000-crore mark as sum assured.
This has primarily been led by the performance in the companys group term insurance plan, says an HDFC Standard Life spokesperson.
The group term insurance plan, which is aimed mainly at corporate clientele, has already found many takers in several multinational corporations, large Indian companies, foreign banks and software companies. At present the number of lives covered under this plan is 11,500.
The group term insurance plan is a one-year renewable plan where one master policy issued covers all the members of the group.
The companys development insurance plan is a group term insurance plan, which is aimed at non-government organisations and the rural markets. So far, HDFC Standard Life has covered 7,000 lives for a sum assured of Rs 7 crore.
The spokesperson says the target for this year is to triple the business done last year, in both the retail and group segments. Last year, the company had insured a total of 44,000 lives, together in group and retail, with a total sum assured of Rs 1,266 crore, earning a premium income of Rs 36 crore.
Union Banks technology expansion effort
Kochi: Union Bank of Indias (UBI) technology modernisation drive, called core banking solution, involving an investment of Rs 150 crore, will be completed in three years, says UBI deputy general manager (central advances department) M S Sundara Rajan.
The programme that is implemented in around 500 branches covering 60 per cent of the banks business, will provide anywhere-and-anytime-banking, Internet-banking, mobile-banking and tele-banking.
UBI has tied up with Wipro, Infosys and two IT majors for the programme. The bank has also decided to widen its ATM network from the present 30 to 100 in another two years.
Out of its total 2,023 branches, 1,304 have been computerised already, covering 83 per cent of the banks business. The bank has also put in place a wide-area network, which facilitates cash management system.
Apart from its renewed thrust on retail and personal banking, especially housing loans, loans to professionals and trade financing, the bank has also lined up new services like insurance product distribution and gold import.
Its public issue of 18 crore equity shares of Rs 10 each for cash at a premium of Rs 6 aggregating Rs 288 crore is for augmenting the long-term resources of the bank and to meet its future capital adequacy requirements. The issue opens on 20 August and closes on 28 August 2002. The bank has reserved Rs 28 crore for its employees.
UBIs gross non-performing assets (NPA) stood at 10.77 per cent at the end of last year. This year, the bank has targeted a recovery of 20 per cent, amounting to Rs 480 crore. It will also make quarterly review of the NPA situation. The bank earned a net profit of Rs 301.33 crore on a deposit level of Rs 39,974 crore in 2001-02. The total advances were at Rs 21,383.31 crore.
UBI Kerala regional head M Paul Mathew says the total business of the bank through 124 branches in the state is Rs 3,000 crore, of which deposits account for Rs 1,900 crore. "The bank has given maximum loans to self-help groups in the districts of Ernakulam, Idukki and Wayanad. Its CD ratio in the state is comparatively higher than the other banks at 58 per cent."
12 August 2002
IRDA moots Rs 3-cr net worth floor for brokers
New Delhi: While proposing to restrict foreign holding in broking entities to 26 per cent, the Insurance Regulatory and Development Authority (IRDA) has suggested that composite insurance brokers carrying on both insurance and reinsurance broking should have a minimum net worth of Rs 3 crore.
Floating rate deposits: The idea is still to sink in
Mumbai: The Reserve Bank of India, in its monetary and credit policy for 2002-03, advised all banks to put in place a flexible rate system with a fixed rate option also for depositors.
Interest rate outlook continues to be soft
Mumbai: The bond market gave up some of its recent gains on a remark by the central bank Governor that the recent OMO was done to suck out liquidity and stabilise the market.
Rethink on UTI, IFCI,IDBI privatisation Govt to exit only after revival
The new strategy which is being thought of could imply that the Government may infuse some more funds for these institutions to help stage a revival.
Yields on corporate bonds also falling
Mumbai: Faced with this deluge of liquidity in the market, bankers are now beginning to take more interest in the corporate bond market. But to be on the safer side, the focus is exclusively on public sector and FI bonds, and some `AAA' rated corporate secur ities. As a result, yields on corporate bonds are also falling.
SBT revises FCNR rates
Kochi: State Bank of Travancore (SBT) has revised the interest rates on FCNR deposits with effect from August 12. The revised rate for US dollar deposits for one year to less than two years is 1.5 per cent, for two years to less than three years two above 2.65 per cent.
Rupee may touch 48.50 by Aug-end
Mumbai: The rupee had a busy week, moving down by about 10 paise to 48.76 levels before ending the week at its 48.65 pivot.
G-sec norms for small urban co-op banks may be eased
New Delhi: The Reserve Bank of India has told the urban co-operative banking sector that it is considering relaxing the stipulations for the smaller banks on mandated investments in Government securities for the purposes of statutory liquidity ratio (SLR)requirement.
Jaswant opposes UTIs distress equity sale
New Delhi: The finance ministry is opposed to any distress selling of Unit Trust of Indias equity holdings. Top government sources revealed that finance minister Jaswant Singh is not in favour of "equity bleeding" by UTI.
IRDA sets guidelines for insurance brokers
New Delhi: The Insurance Regulatory and Development Authority (IRDA) has suggested that composite insurance brokers carrying on both insurance and reinsurance broking should have a minimum net worth of Rs 3 crore.
In its draft regulations, IRDA has proposed a much lower net worth of Rs 25 lakh for brokers who only hold the licence for either direct life insurance or general insurance brokerage. Reinsurance brokers, however, should have to have a minimum net worth of Rs 2 crore. An insurance consultants net worth has been proposed at Rs 10 lakh.
A broker has been described as an intermediary who, for a consideration or otherwise, arranges insurance for clients with underwriting insurance companies and to whom an insurance broking licence has been granted.
An insurance consultant has been described as a person other than a broker who directly or indirectly represents or assists an insured or an insurer in negotiating insurance, disseminating information relating to coverage or rates, risk management and inspection of risk and assists the policyholder in matters relating to settlement of claims.
According to IRDA, for a partnership firm or a corporate body, the net worth would mean the value of the capital contributed or the paid-up equity capital of a body corporate plus free reserves. The figure would be arrived at after deducting any losses carried forward and any loans advanced by the partners of the firm to its partners or by a firm or company to directors, and shareholders as the case may be, at the time of an application made to the authority.
The net worth should be in the form of assets that are easily realisable, IRDA has said. But for a company the net worth would mean only paid-up equity shares.
The authority also proposed that the foreign holding in a brokerage firm should not exceed 26 per cent. In the case of an applicant being a firm or a company, no part of the capital of the applicant can be held by a non-Indian interest beyond 26 per cent of the net worth, it has said.