Three way bank JV planned in Malaysia
Hyderabad: Andhra Bank will hold 25 per cent equity in a joint venture bank promoted in Malaysia in association with Bank of Baroda and Punjab National Bank.

Bank of Baroda which has 40 per cent stake in the joint venture initiative has been at the forefront in setting up the Malaysian entity. Punjab National Bank will hold 35 per cent stake in the new bank.
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LIC has to honour claims by lenders: Bombay HC
Mumbai: Life Insurance Corporation of India (LIC) has to honour claims by lenders like banks, non-banking finance companies (NBFCs) and financial institutions, if an LIC policyholder defaults in repaying the loan to the lender according to a ruling by the Bombay High Court.

Also, LIC cannot insist that lending institutions furnish a declaration stating that they are not in the business of trading in life insurance policies. For obtaining a loan, often, a policyholder may mortgage insurance policy(s) with banks and NBFCs by assigning (read transfer the rights/benefits) to the lender. This is called assignment under valuable consideration.

The order came over a petition filed in November 2004 by Bachraj Finance Pvt Ltd, an NBFC that provides financial assistance against securities.
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Canara Bank yearly profit up 6 pc
Bangalore: Canara Bank's board has reported a profit of Rs1,420.81 crore, a six per cent increase over Rs1,343.22 crore recorded in the previous year. The bank has recommended a 70 per cent dividend for the financial year 2006-07.

The bank said it made record profits despite the high provisions of Rs1,491.66 crore. It provisions for non-performing assets stood at Rs457 crore and depreciation of investments Rs549 crore.

The bank's operating profits stood at Rs2,912.47 crore (Rs2,549.93 crore). The improved performance was propelled by the better gross income. Gross income was Rs12,815.51 crore (Rs10,027.08 crore). Interest income stood at Rs11,364.56 crore (Rs8,711.51 crore).
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AIG to foray into consumer finance
Kolkata: American International Group (AIG) is foraying into consumer finance in a big way. The group recently acquired controlling stake in the Chennai-based Vivek Hire Purchase & Leasing and entered into a deal involving Weizmann Homes. It is also looking at taking over other existing players in the financial services space.

AIG plans to launch consumer finance and home loan products and follow these up with auto loans and credit cards. Its deal with Weizmann Homes will allow it to enter the home loans market also.

According to company officials AIG wants to is to play a critical role in areas that show significant promise. Hence investments in Indian infrastructure form a key part of its overall strategy for the country.

Real estate investments will in the days ahead account for a significant part of the group's activities. Its immediate proposals include a joint venture with RMZ, a Bangalore-based group, for a large property in Kolkata and the development of a 13-acre plot in Chennai.
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RBI issues directive on VC funds
Mumbai: Indian venture capital funds can now invest in equity and equity-linked instruments of offshore venture capital undertakings, subject to an overall limit of $500 million.

According to a notification by the RBI, "Domestic venture capital funds registered with SEBI, desirous of making investments in off-shore venture capital funds may approach SEBI for prior approval in this regard. No separate permission from the Reserve Bank is necessary for such VCFs." it said.
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Tata Power to get $79.3-mn loan from ADB
New Delhi: The Asian Development Bank (ADB) has approved a $79.3 million loan to Tata Power Company for setting up and operating wind energy projects. The loan will support Tata Power in setting up and running wind power facilities in Maharashtra, which will produce 100 MW of electricity, ADB said in a statement from its headquarters.

The rupee-denominated loan comes without government guarantees and is aimed at developing alternative, environmentally sustainable energy sources, the Bank said.
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