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Volume: IV

July 25, 2007

 

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Financial Services

Share Prices
 

 

 

 

Sales and Market Share

Banks

Source: Indian Banks’ Association

 

 

58. Citi Unseats StanChart As Top Foreign Bank – June 23

Citibank emerges as the top foreign bank in India

The rankings of foreign banks operating in India have been changed. Citibank has emerged as the country’s largest foreign bank, a position held by Standard Chartered Bank for the last six years. On 31 March, 2007, the total asset base of Citibank in India was Rs 66,358 crore compared to StanChart’s Rs 58,853 crore. However, StanChart is still the most profitable foreign bank. It has reported a 51% rise in profits to Rs 1,364 crore for the FY 2006-07 while for the same period Citibank reported a 27.5% rise in net profits at Rs 900 crore.

 

Source: The Economic Times

 

 

Insurance

59. Non-Life Premium Income To Touch $11.6 Bn By 2010 – June 29

Indian non-life insurance market to double premium income by 2010

According to ‘India 2010 Lloyd’s View’, Indian non-life insurance market is forecasted to double its premium income to $11.6 billion in 2010, and existing insurers (PSUs or private), new insurers and global reinsurance market will play an important role in achieving this result. The report states that the public sector undertakings (PSUs) will need to readjust their business models to deal with the challenges posed by private players.

 

Source: The Financial Express

 

 

60. Insurance Biz Size May Touch $60 B By 2010 – June 23

Insurance business to reach the $60 billion mark by 2010

According to The Associated Chambers of Commerce and Industry of India (Assocham), the insurance business in India will increase six times to reach $60 billion by 2010 from its current size of approximately $10 billion. The country's life insurance premium is currently estimated at 1.8% of the GDP. The rural and semi-urban India will contribute $35 billion to the insurance industry by 2010, including $20 billion by way of life insurance and the rest through non-life insurance schemes. Urban sector insurance is estimated to reach $25 billion by 2010, with $15 billion and $10 billion contribution from life insurance and non-life insurance schemes, respectively.

 

     Source: The Hindu Business Line

 

 

Mutual Funds
 

 

Source: Association of Mutual Funds of India

 

 

 

Trends, Marketing Initiatives and Others

Banks

 

 

 

61. Real Estate Bank Plans 3,000 Franchisees – July 14

3,000 franchisee shops by Real Estate Bank of India (REBI)

The Bangalore-based Real Estate Bank of India (REBI) plans to invest up to Rs 25 crore by 2008 to open 3,000 franchisee shops across the country. Lakshmi Narayanan, president and CEO, said. “We have already invested Rs 5 crore since February 2007, when the company was incorporated. We are targeting the flourishing real estate market, especially the property transaction segment, where we want a 15-20%”.

 

Source: The Hindu Business Line

 

 

 

62. Postal Department To Strike Deal With 30 Banks For Rural Credit – July 11

DoP enters into alliance with Indian banks for disbursal of rural credit

The department of post (DoP) is in the final stages of an arrangement with 30 Indian banks, both public sector and privately owned, for the disbursal of rural credit and micro finance. According to K. Noorjehan, chief postmaster general, Maharashtra circle, the department has already entered into alliances with Corporation Bank and Union Bank and is finalising a similar deal with Dena Bank. The department expects to earn fee-based income of Rs 50 crore from such tie-ups. In addition, the department has been offering extensive training to its employees for carrying out the procedure (from identification of customers to address verification).

 

Source: The Financial Express

 

 

 

63. Treasure Hunt At Marine Drive? Bank On It – June 28

Centurion Bank of Punjab initiates a unique marketing campaign

Centurion Bank of Punjab initiated a unique marketing campaign to increase visitors to the newly opened branch at Marine Drive. Conceptualised by Arc Worldwide, Leo Burnett’s integrated marketing agency, initially direct mailers and press insertions were sent out to residents in various housing societies in the area, informing them of the bank’s new branch. Next, the concept of creating two ‘treasure chests’ in the bank’s branch was developed and keys for the same were distributed to joggers by volunteers and sandwich men in the area. Each key contained a special number, which, if sent as an SMS along with the person’s name to a certain number, made the person eligible to visit the bank to try their luck with the treasure chests containing special gifts and vouchers. “Each person who would walk in would definitely win something or the other, as the key would open at least one of the chests”, reveals CVS Sharma, senior vice president and director, Arc Worldwide. The bank opened new accounts for the individuals who walked into the branch to open up the treasure chest.

 

Source: agencyfaqs

 

 

 

64. ICICI To Modify Products For Rural Economy – June 20

ICICI Bank targets rural areas

ICICI Bank, in its bid to target rural areas, plans to modify some of its urban products to suit the requirements of the farming community. According to Rajiv Sabharwal, senior general manager, ICICI Bank, the bank is considering financing pre- and post-harvest activities, equipment alongwith crop finance, insurance and savings. In addition, the bank will also offer products for SMEs.

 

Source: The Financial Express

 
 

Insurance

 

     

65. Barclays’ Bancassurance Tie-Up With MetLife – July 12

Barclay and MetLife enter into bancassurance tie-up

MetLife India Insurance Company Pvt. Ltd. has entered into a tie-up with Barclays for bancassurance services, in India.

 

Source: The Hindu

 

 

 

66. 76% Indians Live Without Insurance Cover: Survey – July 06

Study reveals that 76% Indians live without an insurance cover

A study by the National Council of Applied Economic Research, in collaboration with Max New York Life Insurance Company, shows that 76% Indians live without an insurance cover and only 14% of those insured are women. A sample of over 63,000 Indian households, including over 8,800 in Uttar Pradesh, was taken for study. According to Max New York Life, senior vice president, Kenneth Sanoo, "There is a lack of understanding about the real benefits of life insurance towards both financial protection and long-term wealth creation”.

 

Source: DNA

 

 

 

67. Sachin Tendulkar Batting For Aviva Life – July 03

Sachin Tendulkar to be the new face of Aviva

Master blaster, Sachin Tendulkar has been signed, effective 1 July, 2007, as the new brand ambassador for Aviva Life Insurance (India). The company’s recently launched child plan ‘Aviva Little Master, designed for parents to secure their child’s future, is a tribute to the brand ambassador.

 

Source: The Hindu Business Line

 

 

 

68. Many In India Still Elude Health Cover – June 29

Low penetration level of health insurance in India

Health insurance premium earned by life insurance companies through their rider policies was Rs 27.88 crore in 2006-07, marking a 250% growth over FY 2005-06. However, the health insurance industry’s overall penetration level in the country is only an estimated 3%, reflecting the low levels of consumer awareness in the country. However, the growth potential in health insurance is enormous, with an average Indian consumer spending only about 1.2% of his total expenditure on health insurance products. Experts opine that companies should try and reach out to the low-income category. Currently, health insurance products are being bought primarily by urban consumers, especially in the high-income category.

 

Source: The Financial Express

 

Mutual Funds
 

 

69. SBI Mutual Fund Achieves A New Milestone – July 05

SBI Mutual Fund ranked 6^th among existing fund houses

SBI Mutual Fund had Rs 20,000 crore worth of AUM at the end of June 2007, and is ranked 6^th among existing fund houses. According to the official numbers released to AMFI, since 2004, SBI Mutual Fund has grown approximately 3.3 times compared to the industry's growth of approximately 2.6 times.

 

Source: agencyfaqs
 

 

Others
 

70. Baer Capital Launches India Operation– July 14

Baer Capital Partners incorporates Baer Capital Partners (India) Private Ltd

On 12 July, 2007, Baer Capital Partners announced the incorporation of its Indian subsidiary, Baer Capital Partners (India) Private Ltd, and the opening of its Mumbai office in Nariman Point. Beacon India Private Equity Fund is the first Indian investment initiative sponsored by Baer Capital Partners. It will provide growth capital to the Indian companies, and will focus on infrastructure and consumer oriented as well as other manufacturing and services businesses.

 

Source: The Hindu Business Line

 

 

 

71. Reliance Money Kiosks In Tatas’ CMC outlets – June 22

Reliance Money to install kiosks at CMC outlets

Reliance Money has entered into an agreement with CMC an IT solutions and services provider, to install its web-enabled retail kiosks at CMC’s 250 franchisee outlets across the country. CMC will also assist Reliance Money in acquiring new customers and act as a partner in both its trading and financial distribution businesses. Ramanathan Ramanan, the managing director and CEO, CMC said, “The initiative is aimed at enhancing our customer servicing capabilities in the financial services space. Customers will be able to complete their financial transactions using Reliance Money kiosks”.

 

Source: The Hindustan Times

Product Launches

Banks
 

72. Corp Bank Opens Online Education Loan Facility – June 29

Corporation Bank launched an ‘online request facility’ for the education loan product ‘Corp Vidya’ on 29 June, 2007

73. SBH, UAE Exchange Launching MoneyGram – June 21

State Bank of Hyderabad (SBH) in a tie-up with UAE Exchange & Financial Services plans to launch `MoneyGram', a popular foreign inward money remittance product on 16 July, 2007.

 

 

 

74. KVB Unveils Triple `S' Scheme – June 21

On 20 June, 2007, Karur Vysya Bank unveiled the triple `S' – Spouse, Senior Citizen Deposit Scheme, wherein joint term deposits can be opened by a married couple, one of the partners being a senior citizen. 

 

 

 

75. StanChart Launches Private Banking Services – June 16

 On 15 June, 2007, Standard Chartered Bank introduced private banking services in India. The focus of the bank will be on high net worth individuals (HNI), comprising those who possess investible wealth of $1 million (approximately Rs 4 crore) and above.

 

 

Insurance

 

 

76. ICICI Pru Launches Products To Tap Healthcare Sector – July 13

In a bid to tap the potential in the healthcare sector, ICICI Prudential Life Insurance launched insurance products on 13 July, 2007. These products are expected to cover over 1,000 kinds of surgeries.

 

 

 

77. Aviva Offers Life Insurance Product For Rural India – July 04

On 4 July, 2007, Aviva Life Insurance launched a low-premium insurance product for customers of BASiX, an entity engaged in micro finance activities and other livelihood support services in the country.

 

 

 

 

78. Max Life Maker – June 24

Max New York Life Insurance has launched a new ULIP product, Max Life Maker Premium Investment Plan.

 

 

 

79. LIC Hsg To Offer Reverse Mortgage Product – June 20

LIC Housing Finance planned to launch a reverse mortgage product by July 2007. Under reverse mortgage, a company offers loan assistance to senior citizens by mortgaging their houses.

 

 

 

80. Tata AIG’s Rural Policy Launch Soon – June 18

Tata AIG Life Insurance Company is planning to add its rural health insurance product to its rural insurance portfolio in the next six months.

 

 

 

81. Birla Sun Life Launches Gold-Plus Plan – June 18

Birla Sun Life Insurance (BSLI) launched Gold-Plus Plan, a unit-linked insurance plan for individuals seeking short-term investments on 18 June, 2007.

 

Mutual Funds

 

 

82. Franklin Templeton Proposes Asia-Focused Fund – July 14

On 13 July, 2007, Franklin Templeton proposed to launch an international fund to cater to those who wish to invest in overseas securities.

 

 

 

83. UTI Mutual Launches Lifestyle Fund – July 03

UTI Mutual Fund launched a three year close-ended, equity-oriented scheme called UTI-India Lifestyle Fund on 2 July, 2007.

 

84. Lotus Launches Closed Ended Debt Scheme – June 26

On 26 June, 2007, Lotus India AMC launched a closed-ended debt scheme, to generate income by investing in a portfolio of debt and money market instruments. 

 

 

 

85. Kotak Mahindra MF Launches Gold ETF – June 21

On 20 June, 2007, Kotak Mahindra Mutual Fund launched Kotak Gold ETF, an open-ended fund which will invest primarily in gold.

 

 

 

86. Birla Sun Life MF Launches New Capital Protection Scheme – June 20

On 19 June, 2007, Birla Sun Life Mutual Fund announced the launch of Birla Sun Life Capital Protection Oriented Plan. This capital-protection-oriented scheme aims to invest in both high-quality fixed income securities, and equity and equity-related instruments.

 

Others

 

 

87. Reliance Money Launches Security Token In Online Trading – July 02

On 2 July, 2007, Reliance Money launched a ‘security token’ to counter the growing threat of hackers and phishers in online trading.

 

 

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