13 October 20000

ICICI merger plan hits roadblock
Mumbai: After having made a detailed presentation to the country's apex bank, ICICI has found that its plans to convert itself into a universal bank may hit a roadblock.

According to industry sources, the Reserve Bank of India is unwilling to clear its proposal at this stage, as a result of which ICICI has temporarily shelved its idea of converting itself into a universal bank. It is understood that RBI is more in favour of a gradual and graded change of the financial institution into a bank.

In effect, the central bank has turned down ICICI's plea for exemption of compliance with liquidity and cash reserve norms for some time. RBI apparently wants ICICI to adhere to small doses of statutory liquidity ratio (SLR), cash reserve ratio (CRR) and priority sector stipulations on its existing liabilities and assets to be eligible to have restricted access to demand deposits on the course to become a full-fledged bank.

The apex bank's contention was that if ICICI is allowed specific concessions on this ground, other banks would be denied of a level playing field.

12 October 2000

RIL, ICICI, HDFC frontrunners to get first insurance licences
Mumbai: The long period of waiting by prospective private insurers to get a foothold in the Indian insurance industry will soon come to and end when the insurance regulator announces the first few licenses for the insurance privatisation the third week of this month.

It is understood that Reliance Industries, Prudential-ICICI and HDFC-Standard Life are tipped to be receiving the first set of insurance licences, when they are announced on October 23. These will be the first tranche of licenses that the IRDA will be giving out, as part of its phased issuance of licenses.