1. ICICI Bank UK Plc, a wholly-owned subsidiary of India's largest private sector bank, has opened its ninth British branch in Leeds, a large city in Yorkshire. With assets of about $115 billion and a market capitalisation in excess of $30 billion, ICICI's presence currently spans 19 countries.
2. The World Bank on Wednesday approved a $600-million loan to power transmission giant Power Grid Corporation of India (PGCIL) to strengthen the electricity transmission system to increase reliable power exchange between regions and states. The Power System Development Project -IV of PGCIL aimed at reducing transmission losses would help cut cost of energy through further investments in transmission systems. The project is expected to allow the transfer of power from surplus hydro electric power states to power deficient regions and help creating power generation facilities.
3. Health is wealth - and that's certainly the case for Indian life insurers. Nearly 40 days after their entry into the long-term unit-linked health insurance business, the two life insurers - Life Insurance Corporation of India (LIC) and Reliance Life Insurance Company Limited - have been logging good business. The Asian insurance giant LIC averages around 1,200 policies per day.According to him, LIC has sold 50,000 policies till date at an average premium of around Rs.10,000 per policy. Given the poor penetration of health insurance products achieved by the 13 non-life insurers in India, LIC's achievement is quite commendable.Speaking about Reliance Life's experience in selling its Reliance Wealth + Health Plan, its CEO P. Nandagopal said, "The retail response is very, encouraging, especially from the southern markets. The average premium per policy is Rs.15,000."Reliance Life launched the policy soon after LIC came out with its health product.
4. The country’s foreign exchange reserves went up by $3.028 billion to $306.488 billion for the week-ended March 14. The increase is mainly on account of revaluation of currency assets.
The dollar had depreciated against major currencies during the week under consideration. Euro and yen gained against the dollar. The euro surged to $1.5554 on March 15, while the yen also appreciated against the greenback and was seen trading below ¥100 against the dollar.
The foreign currency assets grew by $3.025 billion at $296.496 billion. Foreign currency assets, as expressed in dollars, include the effect of appreciation or depreciation in non-US currencies (euro, sterling and yen) held in reserves.The reserves had increased by $2.225 billion at $303.460 for the week-ended March 7.
The dollar had depreciated against major currencies during the week under consideration. Euro and yen gained against the dollar. The euro surged to $1.5554 on March 15, while the yen also appreciated against the greenback and was seen trading below ¥100 against the dollar.
The foreign currency assets grew by $3.025 billion at $296.496 billion. Foreign currency assets, as expressed in dollars, include the effect of appreciation or depreciation in non-US currencies (euro, sterling and yen) held in reserves.The reserves had increased by $2.225 billion at $303.460 for the week-ended March 7.
5. The growth in the retail customer base and better use of technology are likely to boost the business of Bank of Maharashtra by 24 per cent during the current financial year. Mr M. D. Mallya, Chairman and Managing Director of Bank of Maharashtra, told Business Line on Friday that the bank had targeted a business of Rs 70,000 crore for the current financial year, and it is likely to end up with Rs 71,000 crore. Deposits would be around Rs 41,500 crore and advances would be Rs 29,500 crore. “The growth in deposits would be about 22 per cent and advances around 26 per cent. The business growth will be around 24 per cent,” he said.
6. The Finance Bill, 2008 has cleared the air for senior citizens resorting to reverse mortgage of their residential houses — no tax either on account of capital gains or on the lump-sum or periodic payments received from bank or financial institution. There is now complete relief for senior citizens resorting to reverse mortgage — no financial commitments and no tax commitments either on the transaction. They could not have asked for more except perhaps something that would lessen the pain brought by their conscience being tugged.
7. In a bid to increase their auto loans portfolio, public sector banks are offering lower interest rates and organising special campaigns. This could help revive the demand for auto loans, which has been slowing down, said bank officials.While the State Bank of India is organising a special car rally for its customers, the Bank of India and the Union Bank of India have reduced the rates on car loans. Car and commercial vehicle asset segments comprise one-third of total retail loans for the entire banking industry, said a recent report from rating agency Crisil. Most public sector officials admit that car loans form a minor part of their retail loan portfolio, as private banks and NBFCs hold a major chunk of the market share. The average rate of interest charged by public sector banks for auto loans is 11-12 per cent, depending on the amount and duration of loan.
8. Encouraged by the tax exemptions to reverse mortgage loans announced in the Union Budget 2008-09, Andhra Bank will be launching a reverse mortgage product in the first week of April.
“Our product was ready many months before the Bdget and we were waiting for clarification on the income tax aspects of reverse mortgage loans. As there is no confusion now, we will be launching the product probably on April 1,” Dr K. Ramakrishnan, Chairman and Managing Director, Andhra Bank .
“Our product was ready many months before the Bdget and we were waiting for clarification on the income tax aspects of reverse mortgage loans. As there is no confusion now, we will be launching the product probably on April 1,” Dr K. Ramakrishnan, Chairman and Managing Director, Andhra Bank .
9. Karnataka Bank installed a coin vending machine at Kodialbail branch in Mangalore. This is in pursuance of the measures initiated by the Reserve Bank of India to ensure that adequate number of banknotes and coins are put in circulation so as to cater to the needs of people over a huge geographical area. The bank plans to extend the facility to other branches in and out of Mangalore.
10. The rights issue of State Bank of India was oversubscribed. This is based on provisional data, as the bank is still in the process of collating detailed information. The amount collected through the issue, which closed on Tuesday, is about Rs 600-700 crore more Rs 16,736.31 crore the bank had hoped to raise. The issue opened for subscription on February 18. SBI had priced the shares for the rights issue at Rs 1,590 per share.
