30 March 2001

SBI and Bajaj Auto get approval for entry into insurance sector
New Delhi: The country's largest commercial bank, State Bank of India, and the country's leading two-wheeler manufacturer, Bajaj Auto, have got their applications for entering the insurance sector cleared by the Insurance Regulatory and Development Authority.

State Bank of India has teamed up with France's Cardif, a wholly-owned subsidiary of Paris-based BNP Paribas, to set up a life insurance company.

Bajaj Auto has tied with German insurance giant Allianz to enter the general insurance sector.

IRDA chairman N Rangachary has said new-comers to the Indian insurance industry are expected to capture about 25 per cent of the non-life market over the next five years, despite stiff competition from the state monopoly through Life Insurance Corporation and General Insurance Corporation, which together held a monopoly until the sector was thrown open.

29 March 2001

Madhavapura Bank may be liquidated
Ahmedabad: With no hope in sight about reviving the troubled Madhavpura Mercantile Co-operative Bank, the second largest co-operative bank in Gujarat, the Reserve Bank of India is considering the liquidation of the bank.

The apex bank has also stated that in keeping with the principles of natural justice, individual depositors should get highest priority. Institutions, companies and banks will have to wait.

The cooperative bank had held deposits of around Rs 1,500 crore, largely from several smaller cooperative banks which are single branch operations catering to local communities.