RBI projects lower inflation and higher growth for 2004-05
Mumbai: The Governor of the Reserve Bank of India (RBI) has said that the inflation for the 2004-05 will be lower than estimated 6.5 per cent and the economic growth will be higher than projected 6-6.5 per cent. The RBI Governor, Y V Reddy was speaking on the sidelines of the seminar organised by Fixed Income Money Market and Derivatives Association of India (FIMDA).

In its mid-term review of the annual policy for 2004-05, the RBI had raised inflation forecast to 6.5 per cent from five per cent estimated in May 2004, while it had lowered estimates for Gross Domestic Product (GDP) to 6-6.5 per cent from 6.5-7 per cent earlier. The central bank would conduct a comprehensive review of monetary policy in the third week of April, the Governor said.

On the Special Purpose Vehicle for funding infrastructure projects, Reddy said that the market was ripe for long term paper to fund special purpose vehicle for infrastructure projects.

The Government has fixed the borrowing limit for SPVs in 2005-06 at Rs10,000 crore.
Back to News Review index page  

Tata AIG targets $1 bn business by 2007
Ludhiana: The Tata AIG Life Insurance Company has set an ambitious target of $1 billion by way of business, and the coverage of three million lives by the year 2007.

Tata AIG officials have said that there was a huge potential for life insurance products in India, which was still untapped, particularly in rural areas. The officials said that they were enhancing the number of their agents and distributors, in order to enhance the penetration of their insurance products. The company also intends to increase the numbers of its agents from 30,000 to 1,30,000 by 2007.

Tata AIG Life Insurance Company, a joint venture between Tata group and American International Group, also plans to open 140 branch offices, spreading across 60 cities in India by the year 2007.

At present, the company has 45 branch offices in 25 cities.
Back to News Review index page  

IKF Finance ties up with Sundaram Finance
New Delhi: IKF Finance Ltd has said that the Chennai-based Sundaram Finance Ltd has tied up with the company for the purchase of HP, Lease Receivables Portfolio.

Sundaram Finance has so far paid Rs2 crore in two trenches as part of the tie-up, IKF informed the Bombay Stock Exchange. The company's borrowing cost will come down proportionately with the securitisation of receivables at lower rate of interest than the existing market rates, it said.

It will help to maximize the liquidity of the company, which will enable it to spearhead its lending activity, it added.
Back to News Review index page  

SBI to raise Tier II capital to support credit growth
Mumbai: The State Bank of India (SBI) is planning to raise Tier II capital (subordinated debt) worth Rs3,000 to Rs4,000 crore to support the credit growth of the bank.

Speaking on the sidelines of a derivative seminar organised by the Fixed Income Money Market and Derivatives Association of India (FIMDA), SBI Chairman, A K Purwar said that since the credit growth was going to be substantial in the next fiscal (2005-06) in all sectors, accordingly the bank was exploring the option to raise capital through Tier II bonds worth Rs3,000-4,000 crore to support the credit growth. Purwar, however, did not specify the time frame, in which the bonds would hit the market.

Purwar also did not rule out tapping the equity capital market saying that the current market was very attractive. The bank was also likely to comply with US-GAAP accounting norms by the end of this fiscal.
Back to News Review index page  

ICICI Bank to hold 51 per cent stake in Prudential ICICI AMC
Mumbai: The ICICI Bank Ltd has decided to raise its stake in the Prudential ICICI Asset Management Company Ltd to 51 per cent, by buying out six per cent stake from Prudential Plc, a joint venture partner. The decision to raise stake was an outcome of discussion between joint venture partners, ICICI Bank has said in a release.

The transaction was subject to regulatory approvals, it said.
After the transaction, the holding of Prudential Plc would come down to 49 per cent stake in the asset management company, the release said.
Back to News Review index page