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Rupee firms up - G-Secs range bound
Mumbai: The rupee closed marginally stronger at 43.71/72 per dollar on Wednesday as against its previous closing at 43.74/75.

Forwards Market: The six-month premium closed at 2.35 per cent (2.30 per cent), while the one-year premium closed at 1.86 per cent (1.85 per cent).

G-Secs: Prices moved in a 10-paise band. The benchmark ten-year paper - the 7.38 per cent 2015 closed at Rs104.70 (6.75 per cent YTM).

Call Rates: In the range of 4.60 per cent to 4.50 per cent in the inter-bank market.
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Andhra Bank picks up stake in Principal Financial Group
Hyderabad: By way of enhancing its fee-based income, Andhra Bank has acquired five per cent holding in the Principal PNB Asset Management Company. The bank has entered into a memorandum of understanding with Punjab National Bank (PNB), Vijaya Bank and the US-based Principal Financial Group towards this end.

With this, Andhra Bank joins the existing joint venture between PNB, Vijaya Bank and Principal Financial Group (PFG) to sell the long-term mutual funds and related financial services of the joint venture in the country. On receipt of requisite regulatory and Government approvals, Andhra Bank proposes to enter into definitive joint venture agreements with the partners.

Andhra Bank has invested Rs13.25 crore to acquire the five per cent holding in the AMC. At present, PNB has a holding of 30 per cent and Vijaya Bank five per cent, while Principal Financial Group enjoys majority holding of 60 per cent.

According to PFG, the partnership was intended at creating a synergy that would develop significant financial and other benefits to the partners. Andhra Bank would now promote and support the asset management company to manage the mutual fund business and market and distribute the alliances' products through their branch network.

Appreciating the efforts of Andhra Bank in selling over Rs40 crore worth mutual fund products of Principal PNB during the last 45 days, PFG said the asset management company would now upwardly revise its business targets on Andhra Bank joining the venture.

The bank has set a target of Rs500 crore of business through selling mutual fund products alone. The bank currently has sales alliances with Tata MF, UTI and SBI MF.
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Magma Leasing's Q3 income dips even as disbursals go up
Kolkata: Magma Leasing has achieved disbursements of Rs276.47 crore for the quarter ended December 31, 2004 against Rs224.47 crore for the corresponding quarter of the last fiscal, registering an increase of 23 per cent.

Total disbursals for the 9-month period has touched Rs854.93 crore, against Rs867 crore achieved during the whole of 2003-04. The company says it is confident of achieving the targeted business of Rs1,352 crore for 2004-05.

The gross income for the period under review has dipped to Rs20.26 crore from Rs22.46 crore in the last financial year. This has also impacted the profit after tax at Rs3.25 crore (Rs7.65 crore).

The company said that the drop in earnings during the lean third quarter could largely be attributed to the increasing competition in the financial services sector.

The mandatory open offer made by the promoters of the company (the Chamria-Poddar combine) to minority shareholders had been concluded, and with this, the promoters' holding has now gone up to 83.15 per cent.
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Birla Sun Life to shift focus to semi urban and rural areas
Hyderabad: Birla Sun Life Insurance Company Ltd (BSLI) is planning to strategically shift its focus towards the semi urban and rural markets in an aggressive way.

Disclosing this at a press conference BSLI has said that the company currently has presence in 33 cities across the country with 44 branches. Of the total premium revenue of Rs524 crore, direct sales contributed around 42 per cent, alternative channels around 40 per cent and the balance came from group business.

The company planned to set up 11 more branches by June, nine of them in class-III cities. In the alternative channels, the company has entered into alliances with 10 banks across the country. The company has also recorded a growth of around 160 per cent in premium revenues for the nine-months period ended December 2004.

Aimed at meeting the substantially expanding business volumes, the company has recently increased its capital to Rs350 crore.
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IDBI Ltd. and IDBI Bank boards meet for merger
Mumbai: The board of IDBI Bank Ltd will meet on Thursday to discuss the merger with IDBI Ltd, the bank has said in a notice to the BSE on Wednesday. IDBI transformed into a bank from October 1, 2004.

Post-merger, the bank envisages two strategic business units - one focusing on development finance (corporate banking) and the other on commercial banking needs like retail.

IDBI is also understood to be scouting for acquiring banks with an international presence.
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domain-B : Indian business : News Review : 20 January 2005 : banking and finance