FINANCIALS ( Jan 5,2007)
January 12, 2007
· Aditya Birla group to take over Trinethra
The Aditya Birla group is set to start its retail play through a takeover of Andrapradesh based Trinetra Super Retail Ltd which runs a chain of over100 food and grocery stores in South India. Sources close to the talks between the two entities confirmed the deal, but would not elaborate on the financial details.
· Equity market greet New Year in style
Strong auto sales numbers a domestic institutional buying handed out a 155 point Mew Year bonus to traders. The BSE 30 sensex gained 1.13% or 155.33 points to end at 13,942.24. It follows two consecutive loss-making sessions during the last week of 2006.
· States to earn Rs.40,000 cr from liquor, lotteries.
Call it a promotion of vice or otherwise. Either way, liquor and lotteries are habbits that not only less-resolute mortals, but even cash-strapped State Governments would find difficult to kick without.
· DLF to raise Rs.12250 cr.
With the biggest IPO to hit the domestic bourses, the Delhi based real estate player DLF will raise Rs.12250 cr through its public issue, following the filling of its draft red herring prospectus on Wednesday.
· Sensex closes above 14,000.
The BSE-30 sensex settled above the 14000-mark at 14,014.92 before touching an all time intra-day high at 14.035.67. The sensex gained 72.68 points or 0.52% at the close of trading.
· Inflation rises to 5.45% on costlier minerals.
The annual WPI-based inflation rose 5.45% during the weekend. This was mainly due to the rise of prices of minerals of manufactured products.
· Manufacturing, services fuel 9.2% growth in Q2.
India registered the highest first-half GDP growth since 1991-’92 due to the robust performance from manufacturing and service sectors.
· Nifty breaches 40,000 mark intra-day.
Strong FII inflows and significant rollovers of future contracts spured the NSE Nifty to breach 4,000 mark intra-day at 4,oo1.3 before winding down to close at 3,997.60 up 1.09% from Thursday’s close.
Retail Finance (Dec 8-15)
December 15, 2006
SIDBI launches software for credit appraisal
Businessline, Dec 7
Small Industries Development Bank of India (SIDBI) has launched a new software for appraising and rating small and medium enterprises. The software, called Credit Appraisal and Rating Tool (CART), has been developed in-house by SIDBI. CART aims at helping in prudent decision-making on support-worthiness of credit proposals and on pricing of loans, said a statement from the company. This internally developed tool has been used by SIDBI for the last three years. It has contributed to significant reduction in credit dispensation time in the bank, said the statement. SIDBI has sanctioned about 1,000 loans of average size of Rs 36 lakh using this tool.
ICICI Bank to acquire Sangli Bank for Rs 300 cr
Businessline, Dec 10
ICICI Bank is to snap up Maharashtra-based Sangli Bank through an all-stock amalgamation deal costing Rs 230-300 crore. The share exchange ratio has been fixed at 100 shares of ICICI Bank for every 925 shares of Sangli Bank. “The board of directors of ICICI Bank Ltd and Sangli Bank Ltd at their respective meetings held on Friday, have approved an all-stock amalgamation of Sangli Bank with ICICI Bank. The amalgamation is subject to the approval of the shareholders of both the banks, the RBI and such other approvals as may be required,” said a press release from ICICI Bank. For the proposed amalgamation, ICICI Bank will additionally issue approximately 34.5 lakh shares, which work out to about 0.4 per cent of its existing equity capital. Going by ICICI Bank’s average share price in the last six months, the cost of the deal works out to Rs 230 crore. At the current share price (Rs 876 on Friday), it will be more expensive at Rs 302 crore. Sangli Bank will discuss the merger at its annual general meeting on December 18. Sangli Bank will offer ICICI Bank the fast lane to achieve its rural strategy, said Ms Vishakha Mulye, Chief Financial Officer, ICICI Bank.
Bank of India buys 76 pc stake in Indonesian bank
Businessline, Dec 12
Bank of India today acquired majority 76 per cent stake in Indonesian bank, P T Bank Swadesi Tbk, said a press release from Bank of India. This is the first overseas acquisition for Bank of India, which has a representative office inIndonesia for the last 33 years. P T Bank Swadesi Tbk is a mid-sized bank operating inIndonesia for the last 38 years. It has four branches, two each in Jakarta and Surayaba, five sub-branches, six cash points and one mobile cash unit. It also has a core banking IT infrastructure, ATM facilities and licence to do forex business. It is listed on the Jakarta Stock Exchange, said the press release.
Bharti teams up with AXA for life insurance foray
Businessline, Dec 14
Bharti Enterprises and the French insurance major AXA SA may join hands to set up a mutual fund and a non-life insurance company in the near future. Globally, AXA is one of the largest insurance companies and the fifth largest asset manager. Speaking at the national launch of Bharti AXA Life Insurance Company, Mr Henri De Castries, Chairman, AXA SA, said while the key business of the company was financial protection and life insurance, it was also looking at setting up businesses in the asset management and property and casualty insurance space.
Retail Finance (Oct 13-20)
October 20, 2006
Bancassurance pact renewed
Businessline ,Oct. 19
Syndicate Bank renewed its bancassurance arrangement with Bajaj Allianz Life Insurance Co Ltd on Thursday for a further period of three years. A Syndicate Bank release said that the MoU renewing the corporate agency relationship was signed here on Thursday. The corporate agency was originally started on 21st October 2003. The bank during first six months of this fiscal has mopped up over Rs 115 crore premium.
SIA ties up with ICICI Lombard
Businessline, Oct. 18
Singapore Airlines has joined hands with ICICI Lombard to provide travel insurance to its passengers travelling to Australia and New Zealand. In a statement the airline has said that the tie-up would enable passengers having a valid airline ticket to get a 10 per cent discount on travel insurance. The discount offer is valid from November 2006 till the end of February 2007 and is only for passengers travelling to Australia and New Zealand.
UTI Mutual Fund to merge two hybrid schemes
Oct. 18
UTI Asset Management Co. (P) Ltd. said on Wednesday it will merge UTI US 2002 into its Rs 5.71 bn UTI Balanced Fund, an equity-oriented hybrid scheme. Investors of the debt-oriented hybrid fund opting out of the merger might redeem their investments between Oct. 23 and Nov. 21, the fund house said.
Apollo plans JV with German firm for health insurance foray
11
Apollo Hospitals is to enter the health insurance sector through a joint venture with Germany-based Deutsche Krankenversicherung (DKV), a market leader in health insurance business in Europe. The JV will have a capital of Rs 100 crore, with Apollo Group picking up 20% stake, have been seriously looking at entering the health insurance business for three-four years now. The Indian corporate hospital group informed the Bombay Stock Exchange (BSE) on Tuesday that Prathap C Reddy, chairman of the group, will sign the pact with DKV, on October 11. Mr Padmanabhan said, DKV will bring in expertise covering general insurance across the entire spectrum of services.
Group 8 Batch 15-A
Retail Finance (Oct 9-13)
October 13, 2006
Insurance sector clocks 160% growth
Economic times, Oct 10
With the debut of Bharti AXA Life Insurance the number of players in the sector rose to
16. Put together collected Rs 1560 Cr in premium during April to August which is 160 % growth as compared to the previous year. During the same time LIC’s premium income grew by 170% to mop up Rs 18,581 Cr in premium by selling 78.31 lakh policies.
Max NY launches Life Invest
Businessline, Oct -12
Max New York Life on Thursday launched Life Invest, a flexible unit linked investment plan. According to the company, the product provides the customer with the flexibility to manage their financial needs, including protection, investment and liquidity. Life Invest offers the customer a choice from two death benefits — level insurance cover and increasing insurance cover.
CIN for MFs likely to be delayed
Financialexpress.com, Oct 12
The move by the Securities and Exchange Board of India (Sebi) to root out any misadventure aimed at money-laundering in the mutual fund (MF) sector may take a while to materialise as the implementing entities in the sector have voiced their concern over the roll-out process. In order to prevent money-laundering in the MF sector, Sebi has made it mandatory for MF distributors to implement procedures for issuing of client identification number (CIN) for transactions valued in excess of Rs 50,000. CIN will come into effect from November 1, 2006 as per an Association of Mutual Funds in
India (Amfi) circular, and investors will have to provide the CIN number to redeem their MF units
Batch 15 Group a-8
