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Reliance Life picks up AMP Sanmar
Chennai/Mumbai: The Chennai-based Sanmar group has announced the sale of its interests in AMP Sanmar Life Insurance Company to Reliance Life Insurance, a subsidiary of Reliance Capital Ltd (RCL).

An official statement from Reliance Life Insurance said: "The proposed acquisition will mark the immediate entry of RCL into the exciting growth area of life insurance in one of the world's fastest growing and most under-served markets."

AMP Sanmar Life Insurance Company is a joint venture of AMP, Australia and the Sanmar group. Headquartered in Chennai, it has over 90 offices across the country, 9,000 agents, and more than 900 employees.

The decision to sell the company was taken consequent to AMP's intention to exit the insurance business in India. The consideration for the deal has not been disclosed.

A Sanmar release said that the group had "agreed to co-operate with AMP in selling its interests in the venture."

Industry observers said that buying a licence-holding life insurance company makes sense for Reliance because its registration with the IRDA lapsed, as it did not start its business within three years of registration. Taking over AMP Sanmar Life will get Reliance Life a readymade infrastructure and a portfolio.

In 2003-04, AMP Sanmar issued 46,000 policies and earned premium income of Rs28 crore. In 2004-05, the company issued 35,000 policies but earned a premium income of Rs 91 crore.

AMP Sanmar has a capital base of Rs217 crore and is present in about 80 cities.(See: Anil Ambani snaps up AMP Sanmar)
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Bank of Bikaner & Jaipur sets revised business target of Rs.40,000 crore
Kolkata: The State Bank of Bikaner & Jaipur (SBBJ) has said that the bank had set a revised business target of Rs40,000 crore for 2005-06 from Rs31,500 crore in 2004-05. The bank was also planning to raise Rs300 crore tier II capital in the current financial year. Last year it raised Rs250 crore.

However, it does not have any immediate plan to raise tier I capital.

SBBJ is also planning to tie up with real estate developers in Kolkata as a part of its strategy to foray into housing finance sector in a big way. The SBI subsidiary is also eyeing a chunk of the education loan segment in the city, bank officials said.

SBBJ has already initiated discussions with few real estate developers in Kolkata for tie-ups. The bank was now implementing core-banking solutions in its branches in the city.

SBBJ now had 12 branches in Kolkata and would be adding two new branches. All the branches in Kolkata will be interconnected by October15, officials said.
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Bajaj Allianz surveys damages from Mumbai floods
Bangalore: Bajaj Allianz General Insurance Company Ltd (BAGICL) has received claims for at least 10,000 motor vehicles after the recent floods in Mumbai. Company officials said that more industrial risk claims from Maharashtra's industrial belt, in Bhiwandi, Taloja and Panvel, are yet to come, with surveys already underway to assess the impact of the floods.

The claims are expected to start within the next few days and are likely to impact the balance sheet of the company during the current financial year.

Officials said while motor claims would have to be met directly from the company, unlike the industrial risks that are supported by reinsurance cover. Besides, the company also had a 2 per cent share in the ONGC rig that was destroyed by fire last week.

Despite the large claims, officials said that the company would not be requiring any immediate large capital infusion. BAGICL is currently capitalised at Rs183 crore.

During the last financial year, the company had grown by 80 per cent, against the industry average of 12 per cent. Premium income during the period was Rs857 crore.

He said that the company was pitching in for all the major risk business in energy, infrastructure and aviation sectors. BAGICL is already one of the co-insurers in the Bangalore international airport project, which has gone into financial closure. The sum assured for phase one of the airport project is Rs850 crore.

Bajaj Allianz is a joint venture between global insurer Allianz and the Bajaj group.
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Banking Results: IDBI, IndusInd Bank

IDBI net profit at Rs.109 crore
IDBI Ltd has reported a net profit of Rs109 crore for the quarter ended June 30, 2005 against Rs307.26 crore for the six-month period ended March 2005.

The financial result of the first quarter of 2005-06 is not comparable with that of the corresponding quarter last year as the amalgamation of IDBI Bank with IDBI was effective from October 1, 2004.

Total income for the first quarter of 2005-06 was Rs1,600.68 crore (Rs3,282.85 crore). Net interest income was Rs90.65 crore (Rs187.85 crore).

Capital Adequacy Ratio was 16.2 per cent (15.5 per cent). Net NPA was 1.51 per cent (1.74 per cent).

Deposits were at Rs16,851 core (Rs15,003 crore), while borrowings were at Rs49,622 crore (Rs50,000 crore).

Cost of funds moved down to 7.14 per cent due to a combination of renewed emphasis on reducing interest expenses and access to low-cost deposits, post merger of IDBI Bank with IDBI.

For the current fiscal, IDBI hopes to see a balanced growth from its retail operations, which has been consistently growing at 50 per cent, as well as project financing, which is one of the bank's core strengths, officials said.

Regarding overseas operations, IDBI is looking at countries like Singapore, which is a favoured destination among Indian banks and the Gulf, because of the NRI population.

IndusInd Bank Q1 net drops to Rs.40 crore
IndusInd Bank Ltd has reported lower net profit of Rs40.36 crore for the quarter ended June 30, 2005, against Rs45.48 crore in the corresponding quarter last year.

Total income increased to Rs349.86 crore from Rs337.30 crore. Other income increased to Rs76.30 (Rs57.65 crore). Net interest income was at Rs74 crore (Rs92.43 crore).

Capital Adequacy Ratio was at 11.08 per cent (11.62 per cent).
Total advances were at Rs8,859.79 crore (Rs6,243.07 crore), while total deposits were at Rs13,080.88 crore (Rs11,272.04 crore).

The Bank recovered Rs34.87 crore of bad debts during the quarter against Rs6.19 crore in the previous corresponding quarter.
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