31 may 2003
irda
panel on free pricing of own damage
hyderabad: the insurance regulatory and development
authority (irda) has decided to allow free pricing on
the own damage portion of motor liability, a significant
move that could pave the way for the de-tariffing regime
in the insurance industry. the decision followed detailed
examination of different views expressed on de-tariffing
by the industry participants so as to enable the customers
to have a choice in the products and also their pricing.
earlier, the problems relating to the own damage portion
of the motor tariff were examined by a committee appointed
by irda under the chairmanship of justice t.n.c. rangarajan.
the committee had furnished its report to the regulator
by march 31, 2003. according to irda chairman, n. rangachary,
the committee after examining various alternatives had
concluded that the initial step with regard to de-tariffing
of the premium structure could be undertaken in the case
of own damage portion of the motor insurance.
icici
bank to set up 65 new branches this year - to relocate
unviable ones
mumbai: icici bank, the largest private sector
bank in the country, will be more visible in the metropolitan
cities. the bank has recently received 65 new branch licences
for the year. "most of the new branches will come
up in the metropolitan cities, fourteen of them will be
in mumbai," said a senior official in icici bank.
the bank has a network of 450 branches and extension counters
for the year ended march 2003. this financial year the
private sector bank is focussed on developing its branch
network and not so much the atm network. explaining how
the locations for the new branches have been chosen the
official said, "several regional branch managers
have been demanding a new branch in their area, we gave
them a challenge. double the business with an extra branch,
the managers who accepted the challenge were mostly situated
in the metro cities and therefore we shall increase penetration
in these cities."
sbbj
net rises 24 pc
mumbai: a 13 per cent increase in both, non-interest
income and other income, has enabled state bank of bikaner
and jaipur (sbbj) to record a 24 per cent increase in
net profit for the financial year ended march 31,2003
at rs 203.28 crore, as compared to rs 164.50 crore in
the corresponding period the previous year. addressing
a press conference here on friday, n.k. puri, managing
director of the bank, said the bank's board has proposed
a 50 per cent dividend for its shareholders subject to
rbi approval. on the bank's future business strategies,
puri said, "our aim is to garner at least 50 per
cent of business from outside rajasthan. at present, around
70 per cent of the banks business is from rajasthan itself."
the bank has targeted a net profit of rs 250 crore for
the current fiscal and a deposit growth of rs 2,500 crore
and an increase in advances by rs 1,450 crore.
ksidc
to enter film financing
thiruvanathapuram: the kerala state industrial
development corporation (ksidc) has decided to finance
production of feature films in malayalam by corporate
entities, i.e. private or public limited companies. announcing
this here, a ksidc spokesman said the board felt that
film financing was a "good area" to venture
into, especially in the context of the critical need of
the industry for support at a time when it found itself
right in the midst of a grave crisis. representatives
of the industry have been urging ksidc to enter the field
ever since filmmaking was accorded industry status by
the centre. ksidc is following the lead of the industrial
development bank of india (idbi) in this respect, the
spokesman said. the amount of loan will be 50 per cent
of the cost of the film subject to a maximum of rs 50
lakh. the promoter's contribution should not be less than
15 per cent of the estimated cost of the film. the period
of repayment is limited to a maximum of one year from
the date of the first disbursement. the applicable interest
rate will be 18 per cent per annum on a diminishing balance
method. the securities to be provided will include: (a)
letter from the film processing laboratory conveying rights
on the negatives of the film in favour of ksidc. (b) assignment
of all agreements and intellectual property rights (ipr)
in favour of ksidc. (c) maintaining of a trust and retention
account for all capital as well as revenue inflows and
outflows with ksidc having the first charge on the same.
(d) a hypothecation in favour of ksidc on all tangible
movables acquired for the project. (e) personal guarantee
of the directors of the corporate entity producing the
film, and (f) assignment of existing rights like music,
video, internet, cd, dvd rights, old films etc.
psbs'
deposit growth slows
chennai: deposit growth for 15 public sector banks
grew by around 12.4 per cent during the past fiscal ended
march 2003. this was marginally lower than the 13.1 per
cent growth recorded by them in fiscal 2002. deposit growth
rates have been slowing down during the past few years.
deposit growth rates for public sector banks were of the
order of 14 per cent in fiscal 2001 and around 15.5 per
cent in fiscal 2000. interestingly the deposit growth
rates in the past fiscal have ranged between various banks
from as low as 5 per cent for oriental bank of commerce
to a high of 18 per cent growth for punjab national bank.
over the past four years, interest rates have dropped
by nearly 400 basis points. this has not, however, impacted
banks to the extent that was once feared by them. absence
of alternate investment avenues, indifferent performance
of mutual funds, the general dullness in the stock markets,
and the reduction in non-banking finance companies have
provided banks a fairly conducive environment for unabated
flow of deposits.
knnl bonds issue
gets `adequate safety' rating
bangalore: credit rating agency, icra, has assigned
la+ (so) rating indicating "adequate safety"
with regard to timely payment of interest and principal
to karnataka neeravari nigam ltd (knnl)'s proposed rs
500-crore bonds issue in the current financial year.
according
to an icra report, the state utility had earlier indicated
its intention to raise rs 350 crore either through the
sale of bonds or as term loans in the current financial
year. the state government will provide guarantee up to
rs 250 crore in the case of bond issue. "depending
upon the market conditions, knnl could mop up the entire
amount in different tranches through bonds", the
government sources said. during last year, the utility
had received a similar rating from icra for its rs 500-crore
bonds issue but it did not mop up the stipulated amount.
in its first tranche, it raised rs 174.20 crore through
private placement of bonds at a coupon rate of 10.66 per
cent. in the second round, it raised rs 75 crore.
cisco
to network federal branches
kochi: cisco will implement a multi-location voice
ready wide area network (wan) solution, interconnecting
all the 421 branches of federal bank in india by december
2003. cisco has already networked 250 federal bank branches
to date. the bank has also implemented cisco security
for confidentiality of data over the network, a fax from
the company has said. the bank's plan is to link its branches
via a network of leased lines with a secondary network
of isdn and vsat links, providing backup in case of disruptions.
cholamandalam
q4 net up at rs 8.5 cr
chennai: cholamandalam investment and finance company
ltd has reported a net profit of rs 8.48 crore for the
fourth quarter of 2002-03, compared to rs 6.02 crore in
the corresponding quarter of the previous year. for the
full year, the company made a net profit of rs 28.14 crore,
compared to rs 18.78 crore in 2001-02. the board of directors
has recommended that the interim dividend of rs 5 per
share (50 per cent) be declared as the final dividend.
however, a change in the accounting policy contributed
rs 4.44 crore to the post-tax profits. earlier, the company
used to recognise revenue on securitised agreements over
the tenure of the agreement. but, consequent to the `guidance
note on accounting for securitisation' issued by the institute
of chartered accountants of india, the company has begun
to recognise revenue fully in the year of securitisation.
during 2002-03, the company's disbursements in vehicle
finance grew 45 per cent, to rs 1,008 crore.
dca
help sought to educate investors
kolkata: the association of financial planners
(afp) has made its case before the department of company
affairs in an effort to create awareness of financial
planning. for starters, the association hopes to secure
dca's co-operation in organising programmes on investor
education. the events could range from interaction between
various interest groups to dissemination of information
to investors through the electronic medium. the idea was
to tap the resources available with the authorities, who
were also keen to communicate with investors more effectively,
observed mr ranjeet mudholkar, ceo of afp. the association's
latest initiative is in keeping with the efforts made
recently by the financial planning standards board, which
oversees the global development of the cfp (certified
financial planner) certification programme. afp is the
licensing authority for the cfp trademark in india.
30 may 2003
bank
of maharashtra net rises 53 per cent in '03
pune: the ground for a probable ipo by bank of
maharashtra is ready with the bank turning out a good
performance for 2002-03. net profit jumped by 53 per cent
while operating profit is up 25.43 per cent. deposits
grew by 15.92 per cent while advances grew by 15.18 per
cent. npas declined from 5.81 per cent to 4.82 per cent.
the net worth of the bank during 2002-2003 rose to rs
980.27 crore from rs 697.72 crore in the previous year
with increase in reserves. sc basu, cmd, bank of maharashtra,
has set a target for taking the bank's total business
to rs 50,000 crore and a depositor base of 10 million
by 2005. the bank's good performance was attributed to
lower exposure to corporate borrowing and a larger share
of retail borrowing, which witnessed a steady growth during
the year. despite reduction in plr and competition the
bank managed to increase its spread to 3.01 per cent from
2.91 per cent. the profit has come from core banking,
he said with retail segment, comprising small traders,
ssi, agriculture giving the bank better returns.
public
sector banks race ahead with automation in kerala
thiruvanathapuram: they may well have been ignored
as also-rans, but nationalised banks in kerala are getting
their act together and hitching a ride on the automation
bandwagon, forcing their private sector competitors to
sit up and take notice. central bank of india, bank of
india and syndicate bank are among those who have taken
the lead and are now busy migrating from their legacy
systems to the latest enabling environment to offer services
that are in conformity with the latest business paradigms.
for instance, bank of india, among the top nationalised
banks, is going full steam ahead with their branch automation
and networking plans in the state. working on setting
up leased circuit is progressing fast and the bank plans
to interconnect all 26 branches from thiruvananthapuram
to kozhikode. according to muralidharan, chief officer,
it, zonal office, ernakulam, the central server will be
located at ernakulam itself. the 26 branches in kerala
will be part of the 750-odd being networked across the
country.
pension scheme not for pvt insurance cos
new delhi: concern over the subsidy bill has forced
the government to decide to keep in abeyance the demands
of private life insurance companies to participate in
the assured returns pension scheme for senior citizens
- the varishtha pension bima yojana. the scheme, which
was announced in the budget, would remain the exclusive
preserve of the life insurance corporation of india (lic).
a decision on whether to allow private players to offer
the scheme would be taken after assessing the response
that lic gets once the scheme is put on offer. "we
would like to wait and see what response lic gets to the
scheme over a period of time before our next move,"
they said. a review of the functioning of the scheme could
be done within the current fiscal. "we would have
to give it a go for a few months," officials said.
details of the scheme are being worked out by lic and
are likely to be announced shortly.
treasury
gains: psbs do an encore
chennai: net profits have zoomed up once again
for public sector banks in 2002-03. this time they have
grown on the average by around 60 per cent. this comes
on the back of a 100 per cent growth in fiscal 2002. profits
have come in once again from treasury gains - through
profits made on sale of government securities. there was
a significant appreciation in the prices of government
securities last fiscal as yields on government paper dropped
to new lows. yields on 10-year government paper have dropped
to around 5.8 per cent, a drop of nearly 150 basis points
during the past fiscal ended march 2003. this drop in
yields came on the back of another 300 basis points drop
in the previous fiscal ended march 2002. at the end of
fiscal 2002, when banks had reaped a bumper harvest through
treasury profits, it was widely seen as a one-time affair
and not expected to be repeated this year.