SBI installs cash deposit machine

State Bank of India inaugurated a cash deposit machine at its Hyderabad main branch premises.

The machine, which will be available for 24 hours, can be used for cash deposits of maximum 200 pieces up to Rs 49,900 per transaction.

It will accept only denominations of Rs 1,000, 500 and 100. Apart from this, customers can avail services such as balance enquiry, mini statement and pin change facility. This is the seventh machine in Hyderabad city.

Read more »

IRDA to come out with norms for new products soon

The Insurance Regulatory and Development Authority is working with the insurance industry to bring out a new product design template that will see the emergence of new products in the market.

The insurance watchdog is in the advanced stages of preparing the draft guidelines for new products, both in the life and non-life segments.

“We will come out with the new guidelines by the month-end,” IRDA Chairman J. Harinarayan, told media persons on the sidelines of an event here today.

The new guidelines will specify things such as quantum of guaranteed death benefit and, if these are in the pension segment, the quantum of annuity.

“The new products should cater to different segments of people and the insurers have to take into account the new expectations of the customers,” he said.

Insurance markets

He cited the example of the insurance markets in Europe and America, where the products changed contours over the years, with pension products on the rise and endowment products on the decline.

“Insurance products in Europe in the 1980s are no longer in the market now. We should also head in this direction with more savings oriented products with smaller tenure,” he pointed out.

New regulatory framework

The insurance regulator is also in the process of finalising new guidelines and regulations for micro-insurance, health insurance and bancassurance segments.

“While the new regulatory framework for the health insurance sector will be ready by this month-end, the new bancassurance guidelines will be brought out in the later part of January 2013,” Hari Narayana said.

In response to a question, he said the Indian non-life insurance sector was growing at a healthy clip of about 20 per cent.

The life insurance sector, which has seen a decline in growth in the last few years, could land in positive territory this fiscal, with a marginal growth, he said.

amitmitra@thehindu.co.in

Read more »

World Bank arm IFC open to investing in Religare’s proposed banking venture

The International Finance Corporation (IFC) has indicated its willingness to invest in Religare’s proposed banking entity. IFC is an arm of the World Bank which invests and lends to the private sector.

IFC has invested $75 million (around Rs 405 crore) in Religare through compulsorily convertible debentures. This transaction has been completed. Once all the debentures are fully converted into equity, IFC will have 7.9 per cent equity making it the single largest institutional investor in Religare. This is the largest investment by IFC in financial sector in entire South Asia.

Religare, in its notice to BSE last month, informed that 1,000 equity shares of face value of Rs 10 each for cash at a price of Rs 315.85/per equity share allotted against 40,48,354 15 per cent compulsory convertible debentures of face value of Rs 1000/each, for cash at par, on a preferential allotment basis to IFC.

Religare is one of the few corporates interested in applying for a new banking licence. When asked about any plan to invest in the new venture, IFC’s Director (Financial Market-Asia) Serge Devieux said, “We will be open to do so. We will decide at the time of setting up.” However, it will depend upon Religare’s willingness, he added.

On his part, Group CEO of Religare Enterprises Sachindra Nath said any decision will be taken later. But he said that IFC’s focus on inclusive growth and financial inclusion will be keys. Religare has been identified by IFC as ‘Partner in Development’ to work collaboratively towards co-developing relevant financial products and services for individuals and SMEs in India.

IFC intends to invest approximately $1 billion in India during year 2012-13 starting (July-June). It has already invested nearly $400 million. Apart from Religare, it has invested in Inox and Power Grid

Shishir.Sinha@thehindu.co.in

Read more »

Corp Bank SME loan centre in Jaipur

Ajai Kumar, Chairman and Managing Director of Corporation Bank, opened the bank’s 16th SME loan centre in Jaipur recently.

A bank release said here on Thursday that the other SME (small and medium enterprises) loan centres are located at Delhi, Hyderabad, Bangalore, Chennai, Coimbatore, Pune, Mumbai, Vadodara, Kolkata, Mangalore, Ludhiana, Chandigarh, Ahmedabad, Kochi and Tiruchi.

The bank has launched exclusive SME loan centres in various cities across the country to cater to the SME segment in a big way, the release said.

Read more »

IndusInd Bank to allot equity shares to QIBs

IndusInd Bank Ltd said the finance committee of its Board of Directors has approved the allotment of 5.21 crore equity shares at a price of Rs 384 per equity share (including a premium of Rs 374 per equity share) aggregating to Rs 2,000.63 crore to qualified institutional buyers, the private sector bank said in a notice to the BSE.

The private placement of equity shares is at a 9.16 per cent discount to Wednesday’s closing price of Rs 419.20 per share.

Read more »