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IRDA
nod for AFP courses
Hyderabad: The Association of Financial Planners
(AFP) has received recognition from the Insurance Regulatory
and Development Authority (IRDA) as its approved training
& examining body. In a press release here on Thursday,
AFP said it was the first organisation whose courses had
been given IRDA's approval to be equivalent of 100 hours
of training and pre-licensing examination. At present,
any candidate desirous to become an insurance agent is
required to have, from an IRDA approved institution, a
practical training of minimum of 100 hours and appear
for pre-licensing examination. AFP, a non-profit professional
association, based in New Delhi was established in April
2001 through the contributions of financial services companies
such as Alliance Capital, American Express, Bajaj Capital,
Cholamandalam Finance, Deutsche Bank, Franklin Templeton
Investments, HDFC Mutual Fund, HSBC, ICICI Prudential
Life Insurance, IDBI Principal, IL&FS AMC, Prudential
ICICI Mutual Fund, SKP Securities Limited and Sun F&C
Mutual Fund.
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Andhra
Bank to offer new services
Hyderabad: Andhra Bank proposes to diversify into
other financial segments such as distribution of insurance
products, mutual fund products, cash management services,
health insurance for customers, hassle-free electronic
card for people who are going abroad. The bank has realised
that its spreads would continue to be under strain in
the soft interest regime and also in the framework of
stringent income recognition and provisioning norms. "Reduction
in costs, increase in income flows and improving delivery
channels by effectively using the technology initiatives
would be focussed with clear-cut strategic intent,"
the bank assured its shareholders. Aimed at leveraging
information technology for better customer service, reducing
costs and imparting the ability to handle higher volume
of business, the bank has computerised 1,087 out of 1,100
branches. "The bank is racing towards seamless integration
of branches through cluster banking solution by September
30, 2003."
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Syndicate
Bank to adopt new risk management system
Hyderabad: Aimed at effectively addressing the
three categories of risks - credit, market and operational,
Syndicate Bank has decided to put in place a new risk
management architecture. This is expected to enable the
bank prepare groundwork for the implementation of new
Basel framework on risk management. "For the first
time, a comprehensive risk profile of the bank has been
prepared on the basis of templates provided by Reserve
Bank of India," the Syndicate Bank chairman and managing
director, Michael Bastian, said. The risk profile captures
eight business risks and four control risks. Further,
the risk profile indicates level and direction of risk
in each of these areas, Michael Bastian informed the shareholders
in the management discussion and analysis enclosed to
the latest balance sheet. According to him, a board level
sub-committee on risk management (IRMC) has been constituted
to oversee the risk profile and implementation of various
risk management and control policies and procedures. Separation
of risk control and risk taking functions were clearly
delineated, he said.
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Exim
Bank pays out Rs 45 cr to Govt
Mumbai: Exim Bank has paid Rs 45 crore dividend
to the Union Government for the financial year ended March
31, 2003. The dividend payout amounts to 22 per cent of
the bank's net profit of Rs 207 crore. T.C. Venkat Subramanian,
managing director and chief executive officer, handed
over the cheque to Anandrao Adsul, union minister of state
for finance.
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Corpn
Bank cuts rates on forex deposits
Mangalore: Corporation Bank has revised its interest
rates on FCNR(B) deposits with effect from June 9. According
to a bank release issued here today, the interest rates
on dollar deposits for tenures of one year to less than
two years and two years to less than three years remain
unchanged at 0.90 per cent and 1.20 per cent respectively.
The interest rate applicable for deposits for a period
of three years only is 1.55 per cent (previously 1.65
per cent). Currently, FCNR(B) deposits are accepted in
three currencies — US dollar, pound and euro. Interest
rates on euro deposits have also been revised. Euro deposits
for a period of one-year to less than two years will earn
interest at the rate of 1.90 per cent (1.95 per cent earlier).
The revised rate for deposits of two years and less than
three years is 2.00 per cent (2.05 per cent) and for deposits
of a period of three years 2.25 per cent (2.30 per cent).
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Rating
for New India Assurance
Mumbai: A.M. Best Co, an international insurance
rating company, has affirmed the financial strength rating
of New India Assurance Company Ltd at A (Excellent), for
the fourth time in a row. The rating reflected the company's
excellent capital position, the maintenance of its leading
position in the domestic insurance market and substantial
returns from its investment portfolio, said a press release.
According to A.M. Best Co, New India's capital adequacy
is excellent. The company's capital fully supports its
plans for growth and diversification.
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Centurion
prunes net loss
Mumbai: Centurion Bank, which is being taken over
by the Rana Talwar-led Sabre Capital Worldwide, has reported
a sharp drop in net loss for the quarter ended March 31,
2003 of 89.6 per cent to Rs 11.39 crore from Rs 109.66
crore in the corresponding period of the previous year.
The bank has convened an EGM in Goa on June 14 to seek
shareholders' approval for change of management control
and infusion of capital to revive it. For the full financial
year, the bank has registered 84 per cent decrease in
net loss for the year ended March 31, 2003 at Rs 25.36
crore, down from Rs 161.84 crore in the previous year.
V. Janakiraman, chairman and managing director, told newspersons
that the net loss of Rs 25.36 crore should be viewed against
the fact that the bank had taken an "extraordinary
one-time loss of Rs 14.10 crore on account of the sale
of certain non-banking assets, namely windmills.''
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HDFC
sells 10 per cent in HDFC AMC for Rs 34 crore
Mumbai: HDFC on Thursday sold 10 per cent stake
in its subsidiary, HDFC Asset Management Company Ltd (HDFC
AMC), to Standard Life Investment for Rs 34 crore. With
this sale, HDFC’s holding in its asset management
arm has come down to 50.1 per cent from 60.1 per cent,
and the balance 49.90 per cent is now with Standard Life
Investment, HDFC’s treasury head Conrad D’Souza
said. HDFC AMC has a corpus of about Rs 7,500 crore. HDFC
has sold 20 lakh shares of Rs 10 each of HDFC AMC to Standard
Life Investment. This is the third time, HDFC sold its
stakes in HDFC AMC to bring in its holding to 50.1 per
cent level.
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Kotak
Bank wants ‘reasonable mass’ before inorganic
growth
Mumbai: Kotak Mahindra Bank Ltd will endeavour
to attain reasonable mass and size by strengthening its
branch network and expanding its customer base, before
giving a concrete shape to its plan to grow through mergers
and acquisitions (M&A).
“We are open to mergers and acquisition, but not
in the near future. The bank, for the time being, will
concentrate on infrastructure, expansion of branch network
and technology,” bank executive director Dipak Gupta
said. The promoters of the bank are required to lower
their stake by 11 per cent to 49 per cent after March
2004, in order to comply with Reserve Bank of India’s
stipulations. The bank is exploring various options for
offloading promoters equity, which now stands at about
60 per cent. It will consider mergers, public offers,
private placements and other options and work out the
plans. “We are open to these ideas. But not now,”
Gupta said.
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StanChart
courts consumers with mega loan mela
Pune: Class bankers are now wooing the masses.
Standard Chartered Bank has for the first time organised
a mega mela to promote its home loan, auto loan and consumer
loans at Pune. It has got 60 builders, 15 automobile companies
and 50 consumer durable brands under one roof to offer
customers a range of products. If the response is good
it will take the mela to other cities as well. It also
plans to take home loan to 22 cities by the end of this
year, including Nasik, Nagpur and Indore, using its DSA
network in places where it doesn’t have branches.
Murali MN, GM and head, home loans, car loans and banking
strategy, said that the bank’s home loan portfolio
grew four fold since 2001, but did not disclose the exact
size. “Our portfolio has grown at a brisk rate of
25 to 40 per cent in the market we operate,” he said.
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$10-M
USAID deal for insurance sector
New Delhi: The United States Agency for International
Development (USAID) has awarded a $10-million contract
to BearingPoint for a four-year programme to develop the
insurance sector in India. Under the contract, awarded
late last month, BearingPoint (formerly KPMG Consulting)
will implement a programme of technical assistance with
the Insurance Regulatory and Development Authority (Irda).
BearingPoint has set up a project office in Hyderabad
to maximise its interaction with Irda, also based there.
The US assistance will help Irda to build its institutional
capacity in the areas of solvency and market conduct supervision,
promote an enabling policy and a regulatory and institutional
environment for the development of health insurance system,
develop key professions associated with the insurance
sector, and also develop comprehensive database on insurance
such as health insurance, non-life and life insurance,
a press release issued by the US embassy said here on
Thursday.
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Sundaram
Finance net up 13 per cent to Rs 46 cr in FY03
Chennai: Chennai-based Sundaram Finance Ltd (SFL)
has reported a 13 per cent growth in its net profit during
the year-ended March 2003. Net profit of the company was
Rs 45.66 crore as against Rs 40.36 crore in the previous
year. Gross income, including other income, has gone up
to Rs 476.06 crore (Rs 467.64 crore). The company has
recommended a tax-free dividend of 75 per cent for the
year. This includes additional dividend of 15 per cent
to commemorate the commencement of the 50th year of operations
of SFL. The outgo towards dividend would be Rs 20.30 crore.
Capital adequacy ratio was 17.29 per cent. Net non-performing
assets of the company was 1.45 per cent (2.37 per cent).
Addressing a press conference on Thursday, GK Raman, managing
director, SFL said the company has shown a 25 per cent
growth in hire purchase and loan disbursements.
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Bonds
to protect banks from rate swings: Crisil
Mumbai: The domestic banking system is sitting
on unrealised appreciation of Rs 63,900 crore on its investment
portfolio, with the sharp fall in interest rates over
the last few years. A study released by Credit Rating
and Information Services of India Ltd (Crisil) on Thursday
indicated this potential and estimates that this would
provide a cushion to withstand an interest rate shock
of up to 241 basis points (bps). Interest rates have slumped
by about 600 bps in the last four years, which has led
to a significant rise in the prices of outstanding dated
stocks. Given the soft interest rate outlook, the cushion
seems to be adequate to protect banks from an interest
rate shock, at least in the short term. Crisil’s
chief rating officer and executive director Roopa Kudva
said: “We do not expect any material change in interest
rates over the one-year time horizon and hence there is
low likelihood of erosion in banks’ investment portfolio.”
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