From the desk of Strategic Resources For any query, discussion or feedback, please contact Pavan Chandra, Head of Strategic Resources at pchandra@zenithoptimediaindia.com, +91-124-4195100. Office Address effective May 25, 2007 : 10th Floor, Vatika Tower, Block-B, Sector 54 Gurgaon -122002, Haryana, India.

Volume: II

May 25, 2007

Financial Services

Share Prices

 

NSE share prices as on May 15, 2007

 

Sales and Market Share

 

Source: Indian Banks’ Association

 

Banks

 

83. Indian Bank FY07 Net Up 57 Pc – May 14

Profit for Indian Bank increases by 57%

Indian Bank recorded a 57.15% increase in its consolidated net profit at Rs 810.03 crore for the FY 2006-‘07, compared to Rs 515.47 crore in the FY 2005-‘06.

 

Source: The Economic Times

 

 

84. Bank Of Baroda Records Higher Profit – May 05

Bank of Baroda’s net profit increases by 24.12%

In FY 06-07, Bank of Baroda’s net profit is up by 24.14% at Rs 1026.47 crore as compare to Rs 826.97 in 2005-‘06.

 

Source: The Hindu

 

 

85. HDFC's Q4 Profit Jumps 29% Despite Safe Play – May 04

HDFC reports a profit of 29% for Q4

HDFC reported a net profit of Rs 550 crore for the quarter ended March 2007, an increase of 29% from Rs 426 crore in the corresponding 2006 quarter. The net profit for the entire year increased by 25% to Rs 1,570 crore compared to Rs 1,257 crore in 2006.  Despite the rise in interest rates, the spread on loans over the cost of borrowings for the year stood at 2.18% against 2.16% in 2006.

 

Source: The Economic Times

 

 

86. Canara Bank Q4 Net Profit Up 2.3 Pc – May 02

Net Profit for Canara Bank rises by 2.3%

The public sector lender Canara Bank reported a 2.34% rise in net profit to Rs 505.09 crore for Q4 ended March 31, 2007, compared to Rs 493.52 crore in the corresponding quarter of 2006. The Board of Directors (BoD) also recommended a dividend of 70 % for 2006-‘07. In 2006-‘07, Canara Bank posted a net profit of Rs 1,420.81 crore compared to Rs 1,343.22 crore in 2005-‘06.

 

Source: The Economic Times

 

 

87. Bank Of Baroda May Add More SME Loan Factories – May 01

Bank of Baroda likely to add more SME loan factories

According to Chairperson and Managing Director, Dr. Anil K. Khandelwal, Bank of Baroda plans to open another 15 small and medium enterprises (SME) loan factories in 2007. He also said that such specialised outfits with centralised processing of applications helped in hassle-free sanction of credit to the SMEs at the right time. The bank has, since starting this initiative three months ago, sanctioned credit to the tune of Rs 2,200 crore to the SME sector alone.

 

Source: The Hindu Business Line

 

 

88. Mahabank Q4 Net At Rs 75.27 Crore – May 01

Net profit of Rs 75.27 reported by Mahabank

Bank of Maharashtra registered a net profit of Rs 75.27 crore in Q4 ending March 2007, while it registered a loss of Rs 33.41 crore in the corresponding 2006 period. Considering the growth, the board recommended a dividend of 20% for the year ended March 2007.

 

Source: Business Standard

 

 

89. Corp Bank Net Surges 18.1% – April 29

Corporation Bank profits increase by 18.1%

Corporation Bank posted a net profit of Rs 118.47 crore for the quarter ended March 31, up by 18.15%. The bank’s BoD declared a final dividend of 50% for 2006-’07, subject to shareholders’ approval.

 

Source: Business Standard

 

 

90. ICICI Bank Posts 4.4% Rise In Net Profit – April 29

4.4% rise in net profit reported by ICICI Bank

The second largest bank, ICICI Bank, reported a nearly flat growth in net profit for Q4 2006-’07, due to the doubling of standard provisioning to 2% on certain loans. The net profit in the January-March 2007 quarter was Rs 825 crore, just 4.4% up from Rs 790 crore in 2006.

 

Source: Business Standard

 

 

91. ABN Amro revenue rises 48% in India – April 27

Revenues in India rise by 48% for ABN Amro

The Dutch bank, ABN Amro, reported a 48% revenue growth in India for January-March 2007. The bank’s net operating profit globally grew 25.5% to € 1.225 billion during the period. According to ABN Amro, the Indian operations had its best quarter ever with revenue growth of over 48%, riding on strong growth in business across client segments. For the year ended March 31, 2006, its Indian operations reported a 23.7% rise in net profit to Rs 241.68 crore.

 

Source: The Economic Times

 

 

92. Dena’s Q4 Net Profit By Down 66% – April 26

Dena Bank reports a decline in profits by 66%

Dena Bank reported a decline of 66.43% in net profit for the quarter ended on March 31, 2007, to Rs 43.8 crore, due to higher provisioning and decline in non-interest income. The bank, however, registered an increase of 176.51% in net profit to Rs 201.56 crore for the financial year 2006-‘07.

 

Source: Financial Express

 

 

93. IOB Net Up 42% – April 24

Profits for IOB increase by 42%

Indian Overseas Bank (IOB) registered a 41.73 % increase in its March 2007 quarter net profit, at Rs 289.76 crore as against Rs 204.45 crore in the corresponding 2006 period. The bank registered its highest ever profit recorded in the 2006-‘07 fiscal with a net profit of Rs 1,008 crore.

 

Source: Business Standard

 

 

94. Bank Of India Net Up 76% On Better Interest Income – April 24

Profits increases by 76% for Bank of India

Bank of India reported a 76% rise in net profit for Q4 ended March 31, 2007, to Rs 447 crore against Rs 254 crore in 2006. Net profit for full year rose by 60% to Rs 1,123 crore against Rs 701 crore posted in 2006.

 

Source: Article

 

 

95. Reliance Cap, Central Bank & Oudh Sugar Q4 results – April 24

Q4 results declared by Reliance Cap, Central Bank & Oudh Sugar

The consolidated net profit for Reliance Capital remained almost flat for the quarter ended March 31, at Rs 306 crore (Rs 303.94 crore in the year-ago quarter). The company’s net profit rose by 9.23%. Central Bank of India posted 94% growth in its net profit at Rs 498 crore for the year ended March 31 as against Rs 257 crore in 2005-‘06.

 

Source: Business Standard

 

 

96. Low-Cost Funds Pep Up UTI Bank’s Q4 Nos – April 19

Profits increase for UTI Bank in Q4

The fourth-quarter numbers for UTI Bank are on the higher side, with the profits growing close to 40% driven by a 48% rise in net interest margins and 60% growth in fee income. The bank has been sacrificing margins to build scale on the balance sheet. Given the over 47% growth in balance sheet, UTI Bank relies on term deposits to fund a significant portion of the growth.

 

Source: The Economic Times

 

Insurance

 

 

97. SBI Life Net Up 88% – May 01

Profits for SBI Life increase by 88%

SBI Life registered an 88% increase in net profit at Rs 3.83 crore for 2006-’07, compared to Rs 2.02 crore in 2006. So far, it is the only private sector life insurance company, out of 15, that has been able to break even.

 

Source: Business Standard

 

 

98. Metlife's First Year Premiums Rise 141% – April 27

First Year premiums for MetLife rise by 141%

MetLife India Insurance Company's first year premiums grew by 141% in the last financial year 2006-‘07 to Rs 350 crore.

 

Source: The Hindu Business Line

 

 

99. SBI Life Targets Rs 6,000 Cr Business – April 18

SBI Life aims for a Rs 6,000-cr business

According to U. S. Roy, Managing Director and CEO of SBI Life Insurance, the company is targeting to double the business to Rs 6,000 crore during the FY2007-‘08. In FY2006-‘07, SBI Life generated business of Rs 3,000 crore, 300% growth over FY2005-‘06. The company will follow the bancassurance model to increase business volumes as it was a more cost-effective route compared to the agency channel.

 

Source: The Economic Times

 

Mutual Funds

 

Source: Association of Mutual Funds of India

 

Others

 

 

100. LIC Housing Q4 Net Surges 115% At Rs 89 Cr – May 15

LIC Housing Finance Ltd reports increase of 115% in Q4 profits

The LIC Housing Finance Ltd registered a 115% increase in its net profit at Rs 89 crore for Q4 ended March 31, 2007, compared to Rs 41 crore in Q4 2005-‘06. During the fiscal 2006-‘07, sanctioned loans increased by 19% to Rs 6,105 crore, while disbursed loans grew by 5% to Rs 5,121 crore.

 

Source: The Hindu Business Line

 

 

101. India Infoline Net Up 54% – April 27

Profit increases by 54% for India Infoline

The annual net profit reported by India Infoline rose by 54% to Rs 75.7 crore and revenues grew by 95% to Rs 525 crore.

 

Source: Economic Times

 

 

Trends, Marketing Initiatives and Others

 

Banks

 

102. HDFC Bank To Start Rural Operations – May 14

HDFC Bank plans to start rural operations

HDFC Bank has decided to enter the rural market using a two-stage hub-and-spoke model to reach out to its prospective rural customers directly. At the first stage, it will have a full-fledged branch equipped to deal with the needs of the rural economy. The next stage (the spokes) is designed to reach out to its customers in the villages. At this stage, the bank is planning point-of-sale machines capable of cash deposits and withdrawals. According to P V Ananthakrishnan, Executive Vice President, HDFC Bank, it is planning to have approximately 100 rural branches with approximately 300 spoke locations by the end of 2007.

 

Source: The Times of India

 

 

103. SBI Set To Foray Into Merchant Acquisition – May 10

SBI to enter the merchant acquisition category

The State Bank of India (SBI) has decided to enter the merchant acquisition business to increase its fee-based revenues and credit volumes on plastic cards (credit and debit cards). SBI may either forge an alliance or a JV for the venture. The bank is putting thrust on technology-driven products/channels and the State Bank Group presently has approximately 6,000 ATMs across the country and issued over 25 million cards. This venture will cover all four geographical areas metro, urban, semi-urban and rural centres.

 

Source: Business Standard

 

 

104. Corporation Bank Ties Up With Mumbai’s Dabbawallas – May 04

Corporation Bank partners with Mumbai’s Dabbawallas to distribute financial services

In an innovative step, Corporation Bank partnered with Mumbai’s Dabbawallas to distribute its financial services.  The dabbawallas will act as business facilitators for distributing mailers and also collect the filled-up application forms for opening new deposit accounts. "These dabbawallas will now not only deliver food, but also essential banking services. We plan to tap their huge client base", said B Sambamurthy, Chairperson and Managing Director (MD), Corporation Bank.

 

Source: The Hindu Business line

 

 

105. ABN-Amro India Realigns Retail Loan Portfolio – May 03

ABN-Amro India Realigns Retail Loan Portfolio

ABN-Amro Bank India realigned its retail loan portfolio in favour of unsecured loans. According to Romesh Sobti, Country Executive – India, ABN-Amro, “The dominant driver in the retail portfolio was unsecured loans (personal loans and credit card loans) at 70% with the balance being secured loans comprising home and auto loans”.

 

Source: The Hindu Business Line

 

 

106. ICICI Bank To Join List Of Top 100 Global FIs – May 02    

ICICI bank to become one of the top 100 financial institutions in the world

By raising $5 billion through a follow-on equity offering, ICICI Bank, the country’s largest private sector entity, will enter into the league of the top 100 financial institutions in the world, in terms of market capitalisation. Raising $5 billion through the equity offer will take ICICI Bank to a position of 84 in the list. India’s largest bank, SBI, stands at the 138th position with a market cap of $14.1 billion.

 

Source: The Economic Times

 

 

107. UTI Bank Turns Axis On Royalty Demand – May 02

UTI renamed as Axis

UTI Bank has built a new identity for itself by rebranding itself as Axis Bank. The bank’s board has also approved the appointment of PJ Nayak as the whole-time chairperson of the bank with executive powers.

 

Source: The Economic Times

 

 

108. Small Savings Go Out Of Favour On Low Rates – May 02

People moving away from small savings

According to the latest data with the Finance Ministry, the gross collections under the small savings schemes in post offices and banks declined 12.56% during April to February 2006-’07, to Rs 1,56,756 crore as against Rs 1,79,263 crore during the corresponding period the previous fiscal. The biggest beneficiaries of the decline in small savings collections are the commercial banks, which are offering higher interest rates to mobilise new deposits for meeting the credit binge. Interest rates on deposits of over one year maturity of public sector banks increased from 5.75 to 7.25% in April 2006 to 7.25 to 9.50% in March 2007.

 

Source: The Hindu Business Line

 

 

109. Service Charges: Banks Must Keep Consumers Informed – April 30

Bank to keep their customers informed

These days, banks earn more interest on the compulsory quarterly average balance (the minimum amount) that customers must maintain in their savings accounts. Some banks have increased penal charges over their non-maintenance, and the defaulters will have to pay more on services such as ATM and cheque returns. According to K V Subba Rao, CEO, Banking Codes and Standards Board of India (BCSBI), any change in charges is acceptable as long as banks are transparent and upfront about them.

 

Source: The Times Of India

 

           

110. Foreign Players Make A Beeline To Grab A Share Of Banking Pie ­­­­– April 30

Foreign players to enter Indian banking industry

The Indian economy is growing at over 8% for the past few years, and a number of foreign banks are trying to tap this opportunity. Foreign banks, including Royal Bank of Canada, Royal Bank of Scotland, UBS, have already applied to the RBI to start their operations in the country.

 

Source: The Economic Times

 

 

111. Second Home May Cost More At PSU Banks Too – April 30

Loan for second home to become expensive at PSU banks

Some Indian public sector banks are considering the option of making the second home loan expensive. The difference in interest rates could be in the range of 25 to 50 basis points. Public Sector Banks (PSU) command almost 50% of the home loan market, and have so far offered a single rate of interest across the portfolio, depending on the tenor and amount of the loan. Banks now want to encourage genuine demand, and are considering the interest rate differentiation. As a result, the know-your-customer norm for home buyers is likely to get more stringent.

 

Source: The Times of India

 

 

112. IndusInd's First Priority Is Wealth Management – April 29

Wealth Management, the first priority for IndusInd Bank

To enter new business segments, private sector lender IndusInd Bank intends to give first priority to its wealth management subsidiary, which is expected to be launched soon, and then move forward on its proposed asset reconstruction company (ARC). The bank plans to conduct its wealth management business through a subsidiary, while its proposed ARC business will be driven through a joint venture. The bank is presently awaiting regulatory approvals to launch its subsidiary.

 

Source: The Economic Times

 

 

113. Centurion In Realty Pitch – April 26

Centurion Bank enters into trust, will and real estate business

Centurion Bank of Punjab (CBoP) has decided to establish a separate company, CERMA (Centurion Executorship, Trusteeship, Escrow, Real Estate Management & Advisory Services Co. Pvt. Ltd), to enter into trust, will and real estate management services. According to Shailendra Bhandari, Managing Director and CEO, CBoP will have 20 to 30% stake in the company, with solicitor firms holding the remaining stake. The new entity is likely to be formed in the coming few weeks with services meant for middle class, upper middle class and high-net worth customers. The company is likely to fix a minimum relationship balance of a lakh for providing these services to customers.

 

Source: Business Standard

 

 

114. Barclays Ready To Take $200m Hit In Retail Foray Here – April 26

Barclays to enter through retail banking

UK-based Barclays is planning to start prime and sub-prime mortgage businesses in India. According to industry analysts, the bank has even have kept aside $200 million to fund initial losses in its Indian retail operations, and will also go solo in its credit card foray.

 

Source: The Economic Times

 

 

115. Deutsche Bank Infuses Rs 625 Cr In Indian Operations – April 25

Rs 625 Cr infused by Deutsche Bank for Indian Operations

To increase its lending capacity, in view of the country’s growing credit demand, Deutsche Bank infused capital of Rs 625 crore for its Indian operation, thus almost doubling its capital funds from Rs 1286 crore (as on March 2006) to approximately Rs 2400 crores.

 

Source: Financial Express

 

 

116. Banks See Cells As Next Big Growth Pad – April 20

Mobile banking the next big thing

After branch banking and ATMs, banks are now planning to use mobile phone as a device to expand their operations. Bankers feel that mobile banking could be a more feasible route to cater to the under- and un-banked sections of the population. “There are more than 160 million mobile phone users in the country, compared to a little over 30 million internet users, this in itself represents a major opportunity”,  said Rajeeb Chatterjee, HDFC Bank’s vice-president, ATM, Net Banking & Mobile Banking Products

 

Source: The Economic Times

 

 

117. Middle East Oil Money To Flow Into Indian Markets – April 20

BankMuscat plans various initiatives for India

BankMuscat, the largest bank in Oman, is looking at a number of initiatives, including establishing a private equity fund, an Islamic fund that is Shariah-compliant and helping Indian corporates to raise money through Sukuk, Islamic bonds, in India. BankMuscat had merged its India operations into Centurion Bank of Punjab. It currently has an 18% stake.

 

Source: The Economic Times

 

 

118. Protect Interest Of Home Loan Borrowers: Govt To PSU Banks – April 19

PSU’s to protect interest of home loan borrowers

On April 19, the Government of India asked public sector banks to hold interest rates on home loans of up to Rs 10 lakh, but be careful about lending to commercial real estate sector and for buying stocks. Banks have been advised that, while keeping their long-term portfolio (in mind), they should protect the interests of home loan borrowers taking loans of Rs 8 to 10 lakh, to the extent possible. Considering that, the average loans in priority sector is up to Rs 15 lakh, including home loans of Rs 8 to 10 lakh, the banks have been advised to raise deposits at low costs to offer such loans at the right price.

 

Source: The Economic Times

 

 

119. Bank Raises Service Charges For Customers – April 19

Banks raise service charges

After increasing the interest rate on home and personal loans, banks, including ICICI and UTI, have increased the charges for services such as ATM cash withdrawal and cheque returns by 50%, if customers fail to maintain a minimum balance of Rs 5,000 in their accounts. ICICI is already charging Rs 750 for every quarter, if any customer fails to maintain a minimum average of Rs 5,000 per quarter. For receiving monthly statements, the bank is charging as much as Rs 200 from the customer. UTI has also increased certain charges for customers who maintain to fail quarterly average balance (QAB) of Rs 5,000.

 

Source: The Economic Times

 

  

120. Future Of ATMs Lies In Multi-Tasking – April 19

ATM’s to get into multi-tasking

Diversifications from dispensing cash, to selling theatre tickets, renewing driver’s license and offering other services, will be the future of ATM’s. According to NCR Corp’s, one of the leading global ATM manufacturers, chief executive Bill Nuti, “The ATM is becoming more of a customer-experience portal and research has shown that consumers between 18 and 35 prefer self-service to clerk assisted service”.

 

Source: The Economic Times

 

 

121. Banks Mop Up Over Rs 12.95 Lakh Cr Deposits From Non-Metros – April 18

Small cities contributed 54.71% of bank deposits in Q3

Smaller cities are contributing a significant amount to the kitty of cash-starved commercial banks. According to the data available with the Reserve Bank of India (RBI), cities other than Delhi, Mumbai, Kolkata, Chennai, Pune, Hyderabad and Bangalore, have contributed 54.71% of bank deposits in Q32006-‘07. Scheduled commercial banks (SCBs) collected over Rs 12, 95,000 crores from Tier-II and III centers alone in Q32006-’07, out of the all India mobilisation of Rs 23, 67,000 crores. Bankers attribute the growth to the emergence of new industries in smaller towns and higher income base.

 

Source: The Economic Times

 

 

122. Banks Leverage Branch Strength To Get MNC Insurers On Board – April 17

Banks use their extensive network to partner with MNC Insurers

Banks, with their nationwide branch network are utilising their distribution strength and charging heavy premiums from the second-rung insurance multinationals who want to enter the Indian market. According to industry sources, Japanese insurer Sompo paid a premium Rs 22 per equity share of Rs 10 each for its 26% stake to Allahabad Bank-led non-life insurance venture. Similarly Bangalore-based Canara Bank got a one-time payment of approximately Rs 120 crores from HSBC for its proposed life insurance joint venture.

 

Source: The Economic Times

 

 

123. Banks Plan Rival To Visa, Mastercard – April 17

Visa and MasterCard to face competition

Banks in India are considering establishing a domestic card payment settlement company, called India Pay, which will rival global payment systems Visa and MasterCard. At present all card-based transactions are settled through the global payment network of Visa and MasterCard.  Indian Banks’ Association (IBA) has estimated that payments through cards will increase by three-times over the coming five years. In 2005-‘06, the total spends at point-of-sale (POS) terminals reached Rs 55,000 crore. Approximately 18 million credit cards and more than 60 million debit cards were issued in that year.

 

Source: Business Standard

 

 

Insurance

 

124. Insurer Max NY Life Eyes Mutual Fund Foray – May 10

Max NY to enter the mutual fund category in India

Insurance company Max New York Life (MNYL) is planning to enter the Indian mutual fund business. The move is part of the company’s strategy to diversify from its existing line of business. According to Max New York Life, MD Gary Bennett, “The mutual fund market in India is diversified with only a few players so there is an opportunity and we will look at it”. MNYL is also looking to offer pension products in the coming few months, may even consider an Indian listing of the entity after the coming two years.

 

Source: The Economic Times

 

 

125. ICICI Lombard To Focus On Health Insurance – April 25

ICICI Lombard focuses on Health Insurance

India’s largest private non-life insurer ICICI Lombard General Insurance will now focus on achieving a larger share of premium income from retail line of businesses and reduce dependence on corporate business in 2007. The company has set a target of achieving 60% of premium income from retail insurance in FY’08. It will mainly focus on health insurance, which contributes 23% to the total premium income. According to Sandeep Bakhshi, MD and CEO of ICICI Lombard General Insurance, corporate business, though volatile, is relatively easier to acquire, while retail business is more predictable and requires significant investment in distribution, systems, services and processes.

 

Source: Business Standard

 

 

126. SBI Life To Tap Rural Banks – April 19

SBI Life to enter the rural market

To increase the sale of its insurance products, SBI Life is planning to tap the co-operative banks and regional rural banks (RRBs). According to SBI Life, Managing Director and CEO, Uday Sanker Roy, the board of five co-operative banks had cleared the proposal and a Memorandum of Understanding (MOU) will be signed shortly.  SBI Life is also on a look out for partnerships to sell insurance products with RRBs after the consolidation process of the banks is over.

 

Source: Business Standard

 

 

Mutual Funds

 

127. SBI Funds Plans Global Product – May 14

SBI Funds plans to launch a global product

SBI Funds Management (SBI MF) aims to work out a product for international investors, which will be distributed abroad by Societe Generale (SG), one of the largest bank-owned asset managers in Europe. Sanjay Sinha, Head of Equity, SBI MF, indicated that the product will be devised keeping in mind the capabilities of SG, which is a large player in major markets. "It is on the drawing board. However, at the moment we are testing some of the inputs we have sourced from SG for internal use", he said.

 

Source: The Hindu Business Line

 

 

128. Growth In Indian MFs Among Fastest In World – May 10

Mutual Funds growth – India is one of the fastest in the world

According to a recent study conducted by Investment Company Institute, the growth in the Indian mutual fund (MF) industry, at 43.6%, has made it the world’s eight fastest growing MF industry. However, seen in a wider context, India’s growth rate is almost double the world average.  For 2006, out of the 42 countries studied, India ranks 24 by AUM.

 

Source: Indian Express

 

 

129. Mutual Fund Assets Soar To Rs 3.5 Lakh Cr – May 05

Combined AUM increase by Rs 24, 017 crore in April

Combined assets under management (AUM) of 30 fund houses rose by Rs 24,017 crores, to a total of Rs 3,50,441 crore, in April 2007, compared to Rs 3,26,425 crore in March 2007, according to the Association of Mutual Funds in India (AMFI). Reliance Mutual fund retained its number one spot, followed by ICICI Prudential Mutual Fund.

 

Source: Indian Express

 

 

130. R-Money Eyes 10,000 Branches By Year-end – May 05

R-Money plans to open 10000 branches

Anil Ambani Group’s retail brokerage firm R-Money is planning to open 10000 retail outlets, covering 5000 Indian cities, by 2007-end.  “Our aim is to be present in 5,165 sub-divisions in the long run. We intend to bring all the bank account holders under our trading systems”, said R-Money CEO Sudip Bandyopadhyay. India has 5,645 sub-divisions and 270 million bank accountholders.

 

Source: Business Standard

 

 

131. Global NBFCs Want To Play It Big In India – May 03

Global NBFCs Want To Play It Big In India

Top global financial firms, such as Fullerton India (a subsidiary of Temasek), AIG Capital, BNP Paribas and Societe Generale, operating in the Indian non-banking finance companies (NBFCs) are pursuing an aggressive strategy to expand their reach within the country. The new players have to compete with local firms, such as Future Group and Indiabulls, which have also entered into this business during the past few years. In 2005, Fullerton India Credit Company took a controlling interest of 84% in Chennai-based Dove Finance, which it has subsequently hiked to 99.5%. By March 2008, the company aims to have 400 branches in 120 towns and cities.

 

Source: The Economic Times

 

 

132. Dedicated MFs To Help Small Investor Join Global Takeover – April 27

Mutual Funds help small investors to join global takeover

Fund houses, such as Fidelity, Franklin Templeton and Principal, may now be able to offer investment options to retail investors through a mutual fund dedicated to investing abroad. Such a fund may not be subject to the $150-million ceiling, as long as it is strictly restricted to overseas instruments (both debt and equity) only. The government is currently working out guidelines for these dedicated funds, as well as for individuals who will invest in these funds.

 

Source: The Economic Times

 

 

133. ICICI–Pru’s Rs 50 Micro SIP Spurs War Among MFs – April 25

War among MF’s created by ICICI-Pru’s SIP

Reliance AMC was the first to reduce the SIP amount from Rs 500 per month to 100 per month. However, ICICI Prudential AMC reduced the amount further to Rs 50 per month. This reduction in the minimum investment amount in SIPs has spurred a war in the investment categories.

 

Source: Financial Express

 

 

134. Birla Sun Life MF Steps Gingerly Into Gold ETF – April 20

Birla Sun Life Mutual Fund is in no hurry to launch Gold ETF

Birla Sun Life Mutual Fund, unlike other mutual fund companies, is not in a rush to launch its Gold Exchange Traded Funds (ETF). At present, the company is studying other companies’ experience with their Gold ETF product so that they can come out with a better and refined product.  The company is also planning to open up 25 to 30 more branches across the country by doubling its infrastructure.

 

Source: Business Standard

 

 

135. Birla Sun MF eyes Tier-II, III cities for expansion – April 19

To expand its reach in Tier-II and III cities, such as Ahmedabad, Birla Sun Life Mutual Fund will add 25 to 30 new branches in 2007. The company currently has three branches in Gujarat, at Ahmedabad, Vadodara and Surat. It has also announced the launch of its three-year close-ended equity fund, and will invest in equity and on equity-related securities.

 

Source: Financial Express

 

 

136. UTI's Gold Fund Lists On NSE – April 17

UTI’s Gold Fund listed

UTI's Gold Share, a gold exchange traded fund has been listed on National Stock Exchange (NSE). The first quote received was of Rs 950 for one unit of gold share. The units were allotted to the investor at the rate of Rs 944 per unit.

 

Source: The Economic Times

 

 

137. AIG Asset Wants To Make A Splash Here – April 17

AIG wants to create a niche in India

The AIG Asset Management, the Indian mutual fund arm of AIG Global Investment Group, aims to create a niche for itself in alternative assets such as private equity and real estate & hedge funds. The AMC is the first international fund house to enter India directly without a joint venture with an Indian entity. The first launch for AIG AMC’s will be equity diversified scheme, and is expected to be introduced to the market by May 2007.

 

Source: The Economic Times

 

Others

 

138. Reliance Money Forays Into Gold Retailing – May 03

Reliance Money to enter into gold retailing

Reliance Money, the investment product distribution arm of Anil Dhirubhai Ambani Group, is now entering into retailing of its own brand of gold coins, which will be made exclusively by Swiss precious metal refining major Valcambi. The company has announced a partnership with Switzerland's Valcambi SA, as well as the launch of the gold coins. Reliance Money will be the first non-banking private sector company to retail gold coins in India.

 

Source: The Economic Times

 

 

139. Credit Card Cos Woo Uber Rich With Platinum Offers – May 02

Platinum Credit cards offered to woo the affluent Indian

Credit card companies are trying to woo affluent Indians by offering platinum cards and bundled benefits. Dining, health & wellness, travel and complimentary signing-in offers are provided when the cardholder picks up the card. Currently, the privilege card market comprises 2% of the 22-million credit card market in India. Banks, such as Citibank, ICICI, American Express and Standard Chartered, have entered in this category. Platinum cards generate 60 to 70% higher revenue compared to their gold counterparts, and four to five times more than the classic cards.

 

Source: The Economic Times

 

 

140. Gruh Finance May Expand To TN, Kerala – May 01

Gruh Finance to expand in Tamil Nadu and Kerala

By 2010, Gruh Finance Ltd, a subsidiary of HDFC Ltd, is likely to enter Chhattisgharh, Tamil Nadu and Kerala. It will also increase its presence from five states to eight. According to the adopted strategy, the company is entering the new states that are adjoining the states where it already has its operation.  Gruh Finance has also started its operations in Rajasthan, Madhya Pradesh and Karnataka.

 

Source: Business Standard

 

 

141. Societe Generale Buys Stake In Apeejay Finance – April 26

75% stake in Apeejay Finance bought over by Societe Generale

Societe Generale increased its stake in Apeejay Group Company Apeejay Finance Group Ltd to 75%, after Dabur decided not to pick up its share of 30%.  This was according to the July 2006 agreement between the three parties, and it marks the French financial service major's maiden acquisition of majority stake in any finance company in India.

 

Source: Financial Express

 

 

142. Reliance Money Launches Web Trading –April 17

Reliance Money to deploy its internet-enabled retail kiosks to facilitate online trading

On April 17, Reliance Money Ltd, promoted by Reliance Capital Ltd, announced the deployment plan of its internet-enabled retail kiosks to facilitate online trading. The company has ordered 10,000 kiosks from AGS Infotech, a firm specialising in banking and retail segments. Reliance Money will deploy 2,500 kiosks all over India at outlets such as Reliance Web Worlds, Web Express and franchisee outlets of the company, in the initial phase. The kiosks will provide user, the access to Reliance Money's financial transaction portal for investing in various financial avenues including equities, commodities, offshore instruments, IPOs and mutual funds.

 

Source: The Economic Times

 

 

Product Launches

 

Banks

 

143. ABN AMRO Presents One Card – May 04

ABN AMRO Bank N.V (India) launched the ABN AMRO One Credit Card, which offers lifetime cash back on all purchases.

 

 

144. Fuel Surcharge Waiver On SBI Card– April 25

SBI Card has launched ‘Fuel Freedom', a feature on its card that will allow its cardholders to enjoy zero per cent surcharge on purchase of fuel from any petrol pump in any city across the country.

 

 

145. BoB Opens Gen-Next Branch– April 23

In Pune, the Bank of Baroda has opened Gen-Next, its first youth-oriented branch in the country. The bank has launched four new products for the youth segment, including Gen-Next Lifestyle, Gen-Next Power, Gen-Next Suvidha and Gen-Next Junior, which will be available only at these branches.

 

 

Insurance

 

 

146. Bharti AXA Launches Single Premium ULIP – May 10

On May 9, 2007, Bharti AXA Life, the private life insurance JV between Bharti Enterprises and AXA, launched its first single premium unit-linked product, InvestConfident.

 

 

147. Metlife Unveils New Products– April 30

MetLife India Insurance has launched two new financial products, Sumangali and Vidyakiran, exclusively for the customers of Karnataka Bank. The two products are part of Metlife’s unit-linked insurance plan Met Smart Plus.

 

Mutual Funds

 

148. DSP ML Plans $100-M Fund – May 07

DSP Merrill Lynch (DSP ML) is planning to launch open-ended fund in June 2007, which will primarily invest into the ML international fund, World Gold Fund.

  

 

149. JM Financial To Launch Contra Fund In 3 Months – May 03

According to Sandip Sabharwal, Chief Investment Officer – Equity of JM Financial Mutual Fund, over the coming three months, JM Financial Mutual Fund will launch a contra-fund.

 

 

150. DSP ML Unveils Income Scheme– April 23

DSP Merrill Lynch Fund Managers launched DSP Merrill Lynch Strategic Bond Fund, an open-ended income scheme. The fund will invest across fixed income securities and maturity durations.

 

 

151. JPMORGAN AMC Launches First Domestic Fund – April 19

On April 19, 2007JPMorgan Asset Management India Pvt. Ltd. (JPMAMIPL) launched its maiden domestic fund, JPMorgan India Equity Fund.

 

Others

 

152. Kotak Lines Up PMS Based On Small Caps – May 15

Brokerage firm Kotak Securities will be launching a portfolio management scheme (PMS) focusing on small cap companies, having a market cap of less than Rs 2,500 crore, a first PMS dedicated to smaller stocks by any brokerage in the country.

 

 

Advertising Campaigns

 

 

Insurance

 

153. AIG Campaign Connects With Indian Customers – April 24

Corporate campaign connects with Indian customers

AIG, one of the major global players in insurance and financial services, launched a corporate campaign to connect with Indian customers.  The TV commercial, currently on air, features a child receiving a Re 1 tip for helping an elderly neighbour with her shopping bags. Thrilled, he rushes to his father’s office to show him his first ‘salary', and the TVC signs off saying "AIG. We appreciate the value of your money”. The ‘appreciate’ denotes understanding as well as the increase in value investing with AIG's help, can have on the consumer.

 

Source: The Hindu Business Line

home

This tracker has been compiled from external sources and does not necessarily reflect the views of the company. Direct links only work for a specified date. If you would like to review an article after the printed date, please go to the news source's website directly and access their archives.

© 2007 - 2008 Zenith Optimedia.