ECGC may diversify product range
Chennai: The Export Credit Guarantee Corporation of India is likely to diversify into insurance lines that complement its primary business of export credit insurance following increased competition from the private sector. P M A Hakeem, chairman and managing director, said in the event the company chose to diversify it will be in the areas that complement export credit insurance.

As an example, he identified marine insurance as an area that would sit well with ECGC's core business. At present, ECGC insures about 15 per cent of India's exports. ECGC officials expect private sector players to take away a few high-end clients, but are confident of dominating the segment of the market that comprises small consignments to third world countries.
Back to News Review index page  

OM Kotak's unit-linked plans a success
Kolkata: The unit-linked insurance plan of OM Kotak Mahindra Insurance Company, launched in May 2003, has become a major success among investors, says the company. Subhasis Ghosh, associate VP and regional head (east), said the policy, called Kotak Safe Investment Plan, is already the third largest revenue earner of the company.

Approximately, 20 per cent of OM Kotak's income comes from this policy. However, the largest revenue earner continues to be the endowment plan with a share of 35 per cent and is followed by the capital multiplier plan with a share of 25 per cent. "Over the years, our insurance market had developed only on two products. It is either endowment or money-back policies. Hence, it is difficult to get out of this age-old syndrome. However, new policies like unit-linked policy are fast picking up," Ghosh told reporters.
Back to News Review index page  

Vijaya Bank opts for new dividend policy
Bangalore: Vijaya Bank has reduced its PLR to 11 per cent from 11.5 per cent. It also announced a new dividend payout policy, which ensures a minimum payout ratio of 25 per cent of the bank's net annual distributable profits (net profit as reduced by mandatory appropriations).

M S Kapur, chairman and managing director of the bank, said payout ratio of 25 per cent would be inclusive of dividend tax and surcharge. Vijaya Bank is among only a few banks which have come out with such dividend payout policy as a part of its endeavour towards better corporate governance. These decisions were taken at a board meeting held to adopt the third quarter results.
Back to News Review index page  

Indian Bank to sell ECGC risk products
Chennai: Indian Bank on Thursday signed an agreement with Export Credit Guarantee Corporation of India to distribute the latter's credit insurance packages for exporters. ECGC's agreement with Indian Bank is its sixth such deal to use the banking network to distribute its products. Geetha Muralidhar, general manager at ECGC, said the company is expected to shortly sign up with Punjab National Bank to distribute its products.

M B N Rao, chairman and managing director of Indian Bank, said the agreement allows ECGC to reach customers through the bank's 177 branches spread across the country. Explaining ECGC's motivation, P M A Hakeem, chairman and managing director, said the agreements with banks complement its business because they play an important role in promoting exports.
Back to News Review index page  

LKB goes for brand makeover with new logo
Kochi: Lord Krishna Bank will do a brand makeover with the adoption of a new blue and orange colour logo with LKB branding in modern italic fonts, meant to reinforce its new image as a modern, technology driven and consumer friendly bank. The new logo in blue background represented a visual metaphor for foundation of trust on the shoulders of steady progress, a press release issued by the bank has said.

"The logo is part of our brand makeover strategy as we are now on a fast track to become a national bank,'' managing director and CEO R M Nayak said. "The new logo showcases our national presence and the modern state of the services.'' The bank had recently opened its 103rd branch and has presence in 11 states across the country.
Back to News Review index page  

Vijaya Bank Q3 net profit rises
Bangalore: Vijaya Bank has reported a net profit of Rs 110 crore for the third quarter of this fiscal, up from Rs 95.89 crore in the second quarter. The improved net profit comes despite the reduced earnings; total income of the bank fell to Rs 627.30 crore in Q3 from Rs 631.67 crore. The drop was mainly due to fall in other income, which fell from Rs 159.52 crore in Q2 to Rs 111.15 crore in Q3. Other income mainly consists of fee based incomes and trading profits.

The bank has, however, managed to reduce expenditure during the period; total expenditure was pushed down to Rs 395.72 crore (Rs 415.35 crore). The drop was mainly driven by the reduction in interest and operating expenditure. Interest expenditure was down to Rs 280.55 crore (Rs 282.34 crore). Operating expenditure was down from Rs 133 crore (Rs 115.17 crore).
Back to News Review index page