NHB plans to buy back VHFL stake
Bangalore: National Housing Bank plans to buy back its 5-per cent stake in Vibank Housing Finance Ltd at par, top sources of Vijaya Bank were quoted as saying. Vibank Housing, a subsidiary of Vijaya Bank, is likely to be merged with the bank before March-end. "In the current circumstances, there is no effort either from us or from NHB for the stake transfer to come at a premium," the sources said.

National Housing Bank had approved of this proposed merger and the legal issues were currently being processed, Vijaya Bank sources said. "We want to consolidate the housing loan portfolio of the bank as well the subsidiary from April 1... hence we are rushing through the legal issues," a top bank source said. "The home loan segment is booming and this fiscal, we are likely to report a significant business in the home loan business," sources said. However, they did not detail expected disbursement in that segment for the full fiscal. The paid-up capital of the company, which was floated in 1995, was Rs 10 crore of which Vijaya Bank contributed Rs 8.8 crore and NHB Rs 1.20 crore.
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LIC's new business at over Rs 1 lakh crore
Mumbai: Life Insurance Corporation of India has recorded new business in excess of Rs 1 lakh crore for the third quarter ended 31 December 2003. During the period April-December, the insurer earned a first premium income of Rs 3,967.78 crore on the sale of 1,43,34,980 policies for a sum assured of Rs 1,04,452 crore. This was exclusive of 2,31,042 policies and Rs 4,141 crore premium under the Varishtha Pension Bima Yojana, a scheme subsidised by the central government.

LIC's group insurance portfolio has garnered premium of Rs 1,768 crore under 16.27 lakh lives. While the growth on individual assurances was 12.71 per cent on policies, 26.38 per cent on sum assured and 24.6 per cent on first premium income, a group insurance portfolio showed a thumping growth of 138 per cent in first premium income and 48 per cent on lives.
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Vijaya Bank to sell Principal group's MF products
Bangalore: Vijaya Bank has launched the distribution of Principal Group's mutual funds from its branches. The move follows the tripartite partnership between Punjab National Bank, Vijaya Bank and the Principal Financial Group to float an asset management company that will sell long-term mutual funds and related financial products.

As part of this transaction, the Principal Financial Group will roll its existing fund management company, Principal Asset Management Company, into the joint venture. The Principal group is likely to benefit from the distribution of its products through over 5,000 branches of Punjab National Bank and Vijaya Bank.
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Tata AIG launches policy for Indian emigrants
Mumbai: ITata AIG General Insurance Company Ltd has launched the 'Travel Guard Immigrant Travel Insurance Policy'. The Tata AIG scheme offers a compensation of Rs 2 lakh for death or permanent disability, Rs 10,000 hospitalisation cover and Rs 50,000 worth of medical cover for illness or accident, to the nominee or legal heir in the event of death or permanent disability of any Indian emigrant who goes abroad for employment purpose after obtaining emigration clearance from the concerned Protector of Emigrants (POE). The company will be offering this product from all its offices across India and agents.
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