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New products from SBI as India Millenium Deposits fund nears redemption
Mumbai: With the US$5.5bn India Millennium Deposits (IMD) fund just four months away from redemption, the State Bank of India is planning to launch a deposit scheme and an offshore mutual fund as part of its drive to retain at least 25% of these deposits.

As per the planning, the new deposit scheme will offer returns of more than 1% over the foreign currency deposit rate in India, an insurance cover through the life insurance subsidiary of the bank and an offer to invest the redemption proceeds in diversified Indian equities through an offshore fund. The offshore fund will be floated by SBI's mutual fund arm, the SBI Mutual Fund.

SBI is also likely to offer a loan against FCNR (B) deposits to IMD holders if the money is deposited locally, according to officials.

If the bank manages to retain any of the IMD redemption proceeds, it would then come in handy for funding the India Inc's foray abroad, as well as funding SBI's own plans for overseas acquisitions.

According to bank sources, the Singapore, Bahrain and HongKong offshore banking units of SBI will work towards ensuring that a good part of the IMD redemption proceeds are retained with the bank. It is understood that SBI is targeting to mobilise close to Rs1,000 crore through the offshore mutual fund alone.

The IMD, which was launched in '00 by the SBI, is due for redemption by the end of this year. The deposits were raised in dollar, euro and pound sterling. Depositors were offered an attractive interest rate of 8.5% on deposits denominated in dollar, 7.85% on pound sterling and 6.85 % for euro deposits. The deposits were for a maturity of five years.
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Bank of Baroda global expansion grows apace
Mumbai: As part of its global moves the Bank of Baroda opened a representative office in Bangkok, Thailand, on August 9, even as it inaugurated its 39th branch in the UK, at Leicester, on August 3.

With the latest inauguration, the bank's global presence has spread to 21 countries with 59 overseas offices and branches. The bank also has two representative offices in China and Malaysia.

The bank has also received approval from the Reserve Bank of India for expansion in five countries, including Canada, New Zealand, Bangladesh, Sri Lanka, Maldives and Trinidad and Tobago, bank officials said.

Officials indicated that approval for an Offshore Business Unit (OBU) in Singapore is also likely in the next couple of months. The OBU would offer services such as syndication and global investment.

Overseas branch operations (excluding subsidiaries/joint venture) had contributed nearly 15 per cent to the bank's balance sheet and about 25 per cent to global profits for the year ended March 31, 2005.
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Life insurance industry growth up 21 per cent in Q1
New Delhi: As per data released by insurance sector regulator IRDA, the life insurance industry grew by 21 per cent with LIC and thirteen private players mopping up Rs4,437 crore in the first three months of 2005-06.

While private players expanded business by 73 per cent, the state-owned Life Insurance Corporation grew by 10.2 per cent. The private players have, till June 2005, cornered over 25 per cent of the life insurance market as compared to 17.61 per cent a year ago in terms of premium income from fresh businesses, as per data released by IRDA.

LIC's market share has come down to 74.87 per cent till June 2005, as against 82.39 per cent during the corresponding period last year. State owned LIC mopped up Rs3,322 crore in premium income during April-June this fiscal through the sale of 33.86 lakh policies.

ICICI prudential topped the chart of private players with a market share of 7.53 per cent after logging a business growth of 51 per cent at Rs334 crore.

Bajaj Allianz was second with a market share of 4.18 per cent followed by HDFC standard (3.2 per cent), Tata AIG (1.93 per cent), Birla Sunlife (1.84 per cent), SBI life (1.69 per cent), Max New York (1.44 per cent) and Aviva (1.14 per cent).
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