ICICI Lombard market share highest among private players in April-Dec 2011

ICICI Lombard General Insurance Company had the highest market share in the gross premium underwritten by private non-life insurers in India between April-December 2011.

According to segment-wise figures released by the Insurance Regulatory and Development Authority, ICICI Lombard had a market share of 9.07 per cent with a total gross premium underwritten across all segments at Rs 3,812 crore, compared with Rs 3,123 crore in the year-ago period.

In terms of market share, the company saw a marginal decline of about 15 basis points.

Bajaj Allianz came in second with a market share of 5.67 per cent and Rs 2,384 crore in the total gross premium underwritten.

The total gross premium underwritten by the private non-life insurers has increased to Rs 17,525 crore from Rs 13,825 crore, representing 41.70 per cent market share.

Among the public players, New India had the highest market share of 14.96 per cent with Rs 6,287 crore of total gross premium underwritten.

United India followed with 13.82 per cent market share and a premium of Rs 5,808 crore.

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Sidbi lends Rs 100 crore to SKS Microfinance with strings attached

Small Industries Development Bank of India, which has sanctioned a Rs 100-crore term loan to SKS Microfinance, has put a condition that the troubled MFI will have to use the resource for on-lending to the poor outside Andhra Pradesh, and especially in states which are under-served in terms of microfinance penetration.

SKS' collection efficiency dropped to 25% in Andhra Pradesh, while collection in the non-Andhra Pradesh portfolio remained at 95% on an average, it said in a report circulated among analysts. At present, Andhra Pradesh accounts for 30% of SKS' gross loan portfolio, followed by West Bengal (12.6%) and Karnataka (11.6%).

"We advise geographical diversification to mitigate credit risk. If an MFI is overexposed in one particular state, then it should explore new horizons for business," Sidbi managing director Sushil Muhnot said. All states except those in the southern region remained underserved in so far as microfinance goes, Sidbi said.

Sidbi's Rs 100-crore term loan has thrown a lifeline to SKS, which reported a Rs 428-crore loss in the third quarter to December 2011 as it was forced to write off loans of Rs 332 crore in Andhra Pradesh. Following this crisis, SKS' loan book shrunk to Rs 1,810 crore at the end of December 2011 from Rs 5,000 crore in September 2010.

This was the first major loan to an MFI in the southern state since October 2010. Banks have, however, started opening their purse strings slowly for other micro-lenders following Reserve Bank of India's move to impose operational regulations on MFIs and cap their lending rate at 26% a year, in step with the Malegam Committee's recommendations. However, banks are still shying away from Hyderabad-based MFIs, five of whom went for debt restructuring.

Sidbi has sanctioned loans of 490 crore to MFIs in January, of which Rs 200 crore has been disbursed. The state-run lender has assisted 128 MFIs so far. Its outstanding MFI portfolio stands at Rs 2,317 crore. "We are telling all MFIs that 70% of their loans should go to underserved areas," Sidbi's chief general manager PK Saha had said last week in Jamshedpur.

Source: EconomicTimes

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Coming soon: Up to 2 years' sabbatical for women bank staff

Come April, and women employees of public sector banks (PSBs) may be able to get sabbatical of up to two years during their career.

The Finance Ministry has asked PSBs to place this proposal before their respective boards for decision and its introduction with effect from April 1, official sources said.

This follows the Government agreeing to the Khandelwal Committee's recommendation to introduce sabbatical for women employees of PSBs. The sabbatical benefit will be available only to employees who have put in a minimum of five years of service. The leave will have to be taken for a period of at least three months at a time and it should not be taken more than once in a year.

But, the Government's decision has somewhat irked trade unions, as they contend that such a move would be unilateral and in violation of the service conditions provided in the bilateral settlement between the Indian Banks' Association (IBA) and the unions.

UNIONS CUT-UP

“We are not against sabbatical for female employees. But we are against unilateral changes in service conditions,” C.H. Venkatachalam, General Secretary of All-India Bank Employees' Association, said. The AIBEA has written to the Department of Financial Services in the Finance Ministry seeking a rethink on the issue and the need to abide by the provisions of law.

He pointed out that leave rules are part of service conditions of bank employees and governed under the bipartite settlement signed between IBA and the unions. Either side cannot change, amend or alter the service conditions, except through mutual discussions or through the due process of law.

As and when the proposal (sabbatical for women employees) is brought before the boards, the workman directors will mark their protest for such a unilateral change in service conditions, Venkatachalam said.

The Khandelwal Committee was set up in October 2009 to study human resource issues in public sector banks. The Committee had made 105 recommendations, of which the Centre has given its green signal for 56.

krsrivats@thehindu.co.in

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Diners Club International cards will be accepted at more ATMs, point-of-sale terminals

National Payments Corporation of India (NPCI) has tied up with Discover Financial Services (DFS), a US-based direct banking and payments services company. Under this tie-up, Discover and Diners Club International cards will be accepted at NPCI ATMs and point-of-sale terminals for purchases in India.

It also will allow RuPay (the national card payment network in India) cardholders to utilise the Discover, Diners Club International and PULSE networks for international purchases and cash access outside of India, said a press release issued by NPCI.

The arrangement will be implemented in a phased manner. To begin with, DFS and DCI cards will be accepted at RuPay ATMs in India, followed by acceptance at RuPay POS locations. The final phase will enable acceptance of RuPay Global Cards on Discover's global payment network outside of India.

Currently, there are about 120 million DFS and Diners Club cards worldwide, which can be accepted on the RuPay network.

Similarly, the DFS and DCI cards will be accepted at over 90,000 ATMs that are linked to the NPCI's National Financial Switch. Eventually they would also be accepted at over six lakh POS terminals that are linked to the NFS, said an official from NPCI.

“The network-to-network alliance between DFS and NPCI eventually will result in the issuance of RuPay Global cards once the domestic RuPay cards being launched later this month stabilise,” said Mr A. P. Hota, Chief Executive Officer and Managing Director of NPCI.

Mr Hota added that seven promoter banks have signed an MoU with NPCI to be part of the pilot launch of domestic RuPay cards.

NPCI has been promoted by State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC.

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OBC raises fixed deposit rates by 3.5%

State-owned Oriental Bank of Commerce today raised rates on high value fixed deposits by up to 3.5 per cent on select maturities amidst tight liquidity conditions.

Deposit of Rs 15 lakh and Rs 1 crore for 31-45 days maturity period will earn 8.5 per cent interest as against 5 per cent earlier, the bank said in a statement.

At the same time, interest rate on 46-90 days fixed deposits have been raised by 3.25 per cent to 9 per cent while those on 91-179 days term deposits have been increased from 8 per cent to 9 per cent.

The new rates are effective from March 1, it added.

Besides, rates on select maturities of fixed deposits beyond Rs 1 crore have been revised upwards by 1 per cent.

Banks are facing tight liquidity condition and have to borrow more than Rs 1.5 lakh crore from RBI on daily basis.

Tight liquidity conditions have also led to rise in rates of certificate of deposits and commercial paper issued by the banks.

Source: Financial Express

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