The Plan outlay of Maharashtra for 2008-09 has been estimated at Rs 25,000 crore comprehensive of additional Central Assistance of Rs 250 crore for projects of special interest to the State. This was accorded at a meeting between the Deputy Chairman Planning Commission, Mr Montek Singh Ahluwalia, and the Chief Minister of Maharashtra, Mr Vilasrao Deshmukh. Mr Ahluwalia said performance in both human development and growth rate of the State was satisfactory as it is all set to achieve growth rate above national target for the Eleventh Plan. Improving urban infrastructure, housing, irrigation and agriculture should be given precedence during the Eleventh Plan.
Thursday, March 6, 2008
LIC to start card business in September
Life Insurance Corporation of India (LIC) will be rolling out the credit card business by the first week of September. LIC will ink an agreement with joint venture partners for the purpose. The insurance behemoth will set up a joint venture firm called LIC Card Services in accordance with RBI guidelines. The central bank requires the formation of a new registered entity before a foray into the credit card business.
The payment gateway could be either Visa or Mastercard. LIC is engaged in talks with both, according to a senior company executive. LIC would own the largest stake in the JV, around 40 per cent, followed by GE Money India at 30-35 per cent. The insurer had signed a memorandum of understanding with GE Money India, Corporation Bank, LIC Housing Finance and LIC Mutual Fund in September last year to create a credit card company. Some loose ends would have to be tied up before the credit cards are finally launched. LIC has already linked its 2048 offices across the country through a software network to provide multi-city facilities to its customers and is in the process of checking the software platforms. LIC is also fine-tuning the channel networks and merchant establishments that would support the marketing of its credit card. LIC would offer the facility of unsecured loans against the credit card. It would also allow policy premiums to be paid through its own credit card. LIC a database of 19 crore policy holders and aims to add around 1 crore customers in three years. It is confident of having a network of 32 crore policy holders by 2011. It has 14 lakh agents and is adding 1.5 lakh every year.
The payment gateway could be either Visa or Mastercard. LIC is engaged in talks with both, according to a senior company executive. LIC would own the largest stake in the JV, around 40 per cent, followed by GE Money India at 30-35 per cent. The insurer had signed a memorandum of understanding with GE Money India, Corporation Bank, LIC Housing Finance and LIC Mutual Fund in September last year to create a credit card company. Some loose ends would have to be tied up before the credit cards are finally launched. LIC has already linked its 2048 offices across the country through a software network to provide multi-city facilities to its customers and is in the process of checking the software platforms. LIC is also fine-tuning the channel networks and merchant establishments that would support the marketing of its credit card. LIC would offer the facility of unsecured loans against the credit card. It would also allow policy premiums to be paid through its own credit card. LIC a database of 19 crore policy holders and aims to add around 1 crore customers in three years. It is confident of having a network of 32 crore policy holders by 2011. It has 14 lakh agents and is adding 1.5 lakh every year.
UTI Asset Management to sell 20-pc stake
UTI Asset Management Company is all set to offload around 20 per cent stake to a clutch of strategic investors through a pre-initial public offering (IPO) placement. Altogether, the company would look at selling up to 49 per cent stake to public and a clutch of strategic investors. In January this year, UTI Asset Management Company Ltd had filed the draft red herring prospectus with the market regulator to enter the capital market with an IPO of 4.85 crore equity shares of Rs 10 each through an offer for sale by the selling shareholders. Its four sponsors and the selling shareholders are the State Bank of India, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda. The offer also comprises a reservation of equity shares for subscription by employees and the offer to the public.
ICICI Bank clarifies on news item
With reference to the news item appearing in a leading web portal titled, ICICI Bank has lost $ 264 Mn till Jan 31 on subprime crisis, ICICI Bank Ltd has clarified as under:
ICICI Bank Ltd has no material direct or indirect exposure to US sub-prime credit. The widening of credit spreads in the international markets have resulted in a negative mark-to-market impact on the credit derivatives and fixed income investment portfolios of the Bank and its overseas banking subsidiaries, while there has been no significant deterioration in actual credit quality of the underlying investments.
ICICI Bank and its overseas banking subsidiaries have an aggregate exposure of USD 2.2 billion in credit derivatives. As of January 31, 2008, the mark-to-market negative on this portfolio due to movement of credit spreads was about US$ 155 million of which USD 88 million had been provided for in the financial statements of the bank and its subsidiaries for the nine months ended December 31, 2007.
In addition, ICICI Bank and its overseas banking subsidiaries have fixed income investment portfolios which have a mark-to-market negative due to widening of credit spreads. As of January 31, 2008 this negative was about US $108 million of which US $ 101 million had been accounted for in the financial statements as of December 31, 2007. This includes mark-to-market on the available for sale portfolio which has been accounted for in the shareholders'' equity.
It may be noted that unrealized gains on ICICI Bank''s other investment portfolio has not been considered in above.
ICICI Bank Ltd has no material direct or indirect exposure to US sub-prime credit. The widening of credit spreads in the international markets have resulted in a negative mark-to-market impact on the credit derivatives and fixed income investment portfolios of the Bank and its overseas banking subsidiaries, while there has been no significant deterioration in actual credit quality of the underlying investments.
ICICI Bank and its overseas banking subsidiaries have an aggregate exposure of USD 2.2 billion in credit derivatives. As of January 31, 2008, the mark-to-market negative on this portfolio due to movement of credit spreads was about US$ 155 million of which USD 88 million had been provided for in the financial statements of the bank and its subsidiaries for the nine months ended December 31, 2007.
In addition, ICICI Bank and its overseas banking subsidiaries have fixed income investment portfolios which have a mark-to-market negative due to widening of credit spreads. As of January 31, 2008 this negative was about US $108 million of which US $ 101 million had been accounted for in the financial statements as of December 31, 2007. This includes mark-to-market on the available for sale portfolio which has been accounted for in the shareholders'' equity.
It may be noted that unrealized gains on ICICI Bank''s other investment portfolio has not been considered in above.
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