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Banks
rush to take NBFC route to private banking
Mumbai:
A
number of banks are opening non-banking finance companies
(NBFC). These include BNP
Paribas, Centurion Bank and UTI Bank.
The
reason fo this is that banks in India can only advise,
but not take financial decisions on the customer's behalf,
as per government stipulations.
Centurion
Bank, which recently merged Bank of Punjab with itself,
is also contemplating the option of floating a NBFC.
The
bank plans to supplement its wealth management services
with asset management services via an asset management
company floated by Sabre Capital. The asset management
company would offer specialised asset management mutual
fund products to high networth individuals (HNIs).
Through
this subsidiary the aim would help to optimise the customer's
wealth through best use of technology and upgraded customer
service standards.
The
French Bank BNP Paribas plans to float an NBFC for its
discretionary portfolio management services.
China
has 236,000 'high net worth individuals', India 61,000
and Brazil (80,000).
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SBH
offers United India Insurance for clients
Hyderabad:
State
Bank of Hyderabad (SBH) has tied up with United India
Insurance Company to launch `SBH Arogya Suraksha,' a special
health cover to its account holders. For the first time
the bank has relaxed age limit. The bank said the premium
was the lowest available compared to similar schemes in
the market.
The
policy covers reimbursement of hospitalisation expenses
for accidents/ illness for a sum insured ranging from
Rs50,000 to Rs3 lakh on a family floater basis —
the family being self, spouse and two dependent children.
The policy also covers pre-hospitalisation expenses up
to 30 days and post-hospitalisation expenses up to 60
days.
The scheme will be serviced by third party administrators
(TPAs) who will be issuing photo identity cards to the
insured.
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Yes
Bank, SIDBI enter into tie up to service SMEs
Mumbai:
Small Industries Development Bank of India and Yes Bank
have tied-up to provide credit and other financial products
to the small and medium enterprises sector, under a new
co-brand called Yes SIDBI.
The
banks are targetting Rs100-crore worth incremental loans
to the SME sector in one year.
This
is the first tie-up between SIDBI and a private sector
bank. Yes Bank hopes to accelerate focus on the SME sector
with the tie up. Yes Bank's exposure to the emerging corporate
entities and the SME sector was around Rs350 crore.
SIDBI
has tied up the entire corpus of the Rs500-crore SME Growth
Fund, which is a venture capital fund. Around Rs40-50
crore has been disbursed in sectors such as auto components,
pharma, infrastructure and manufacturing.
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SBI
takeover of UTI AMC to create biggest fund house
Mumbai:
The State Bank of India (SBI) is likely to take control
of UTI Asset Management Company (AMC). As it had outbid
other three sponsors.
Earlier
this year, the government put the AMC on the block, but
restricted the bid to the four original sponsors —
SBI, Life Insurance Corporation of India (LIC), Punjab
National Bank (PNB) and Bank of Baroda (BoB).
The realisation for the deal is estimated at over Rs1,000-1,500
crore and the proposed transaction will result in the
emergence of the biggest fund house in the country.
At
present UTI AMC is the market leader in the domestic mutual
fund business, with assets under management (AUM) aggregating
Rs21,000 crore. SBI's mutual fund arm, SBI MF, manages
assets worth around Rs7,200 crore. UTI AMC has over 35
schemes on offer, while SBI MF offers over a dozen schemes.
However,
SBU will have to merge UTI AMC with its own mutual fund,
as bank cannot sponsor two AMCs.
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