Tuesday, April 30, 2013
Shriram Life Insurance expects 29% jump in new business premium
NEW DELHI: Private sector insurer Shriram Life Insurance
today said it expects 29 per cent jump in new business premium income
and plans to launch four new products by the end of June this year.
"We expect our new business premium income to be around Rs 545 crore by the end of March 2014, an increase of 29 per cent over the last fiscal," Shriram Life Insurance Managing Director Akhila Srinivasan told PTI.
The company ended the 2012-13 fiscal with a 8 per cent growth in new business premium income at Rs 421 crore.
It plans to file with IRDA for 14 new products in the current fiscal. "We plan to come out with four new products in the April-June quarter for which we will be filing with regulator IRDA," she said.
Srinivasan further said the total premium income of Shriram Life Insurance is expected to go up by 28.6 per cent to Rs 795 crore by March 2014, from Rs 618 crore in the previous year.
The company sold 1.54 lakh policies at the end of March 2013.
Shriram Life Insurance, which is a joint venture between Shriram Group and South Africa--based insurance service provider Sanlam, has a strong presence in South India, especially Tamil Nadu and Andhra Pradesh.
"We are expanding our presence across India. We are going to Delhi, Madhya Pradesh, Kolkata, Punjab, Uttar Pradesh, Jharkhand. We hope these areas to give us increase in our premium collection as we aim to achieve financial inclusion across the country," she said.
The paid-up capital of the company stood at Rs 175 crore. In 2011-12 fiscal, the life insurer clocked a pre-tax profit of Rs 67 crore.
"We expect our new business premium income to be around Rs 545 crore by the end of March 2014, an increase of 29 per cent over the last fiscal," Shriram Life Insurance Managing Director Akhila Srinivasan told PTI.
The company ended the 2012-13 fiscal with a 8 per cent growth in new business premium income at Rs 421 crore.
It plans to file with IRDA for 14 new products in the current fiscal. "We plan to come out with four new products in the April-June quarter for which we will be filing with regulator IRDA," she said.
Srinivasan further said the total premium income of Shriram Life Insurance is expected to go up by 28.6 per cent to Rs 795 crore by March 2014, from Rs 618 crore in the previous year.
The company sold 1.54 lakh policies at the end of March 2013.
Shriram Life Insurance, which is a joint venture between Shriram Group and South Africa--based insurance service provider Sanlam, has a strong presence in South India, especially Tamil Nadu and Andhra Pradesh.
"We are expanding our presence across India. We are going to Delhi, Madhya Pradesh, Kolkata, Punjab, Uttar Pradesh, Jharkhand. We hope these areas to give us increase in our premium collection as we aim to achieve financial inclusion across the country," she said.
The paid-up capital of the company stood at Rs 175 crore. In 2011-12 fiscal, the life insurer clocked a pre-tax profit of Rs 67 crore.
ABDUL WAHEED
PGDM 2nd SEM.
IIMT COLLEGE OF MANAGEMENT
Monday, April 29, 2013
Nifty ends above 5,900; HUL rallies 7% on strong results
MUMBAI: The Nifty
broke out of its narrow range in afternoon trade on Monday and surged
higher to close near 5,900 mark led by gains in FMCG, realty, power and
technology sectors.
The 50-share index ended at 5,904.10, up 32.65 points or 0.56 per cent. It touched a high of 5,918.65 and a low of 5,868.80 in trade today.
The Sensex closed at 19,368.22, up 81.50 points or 0.42 per cent. It touched a high of 19,428.94 and a low of 19,284.40 in trade today.
The S&P BSE Midcap Index was up 0.72 per cent and the S&P BSE Smallcap Index was 0.32 per cent higher.
Among the sectoral indices, the S&P BSE FMCG Index was up 2.40 per cent, the S&P BSE Realty Index was 1.60 per cent higher and the S&P Power Index gained 1.52 per cent. The S&P BSE Metal Index was 0.85 per cent lower and the S&P BSE Healthcare Index slipped 0.08 per cent.
Hindustan UnileverBSE 6.98 % (7.23 per cent), Reliance Infrastructure (4.33 per cent), IndusInd BankBSE 4.40 % (3.68 per cent), Hero MotoCorpBSE 3.24 % (3.01 per cent) and Jaiprakash AssociatesBSE 2.66 % (2.80 per cent) were among the top Nifty gainers.
Hero MotoCorp gained on reporting better than expected net profit at Rs 574.23 crore versus Rs 603.59 crore for the same period last year. The company has hiked prices ranging from Rs. 500 to Rs. 1,500 across all models with immediate effect.
Jindal SteelBSE -4.24 % (4 per cent), NMDC (2.29 per cent), Coal India (1.85 per cent), Sun Pharmaceuticals (1.68 per cent) and Ambuja Cements (1.28 per cent) were among the top losers.
Shares of FMCG major Hindustan Unilever surged higher in trade on back of short coverings after its volume growth and margins surprised the street on the upside.
The company reported a net profit of Rs 787 crore, up 14.6 per cent, as compared to a net profit of Rs 686.6 crore in the corresponding quarter, a year ago. Net sales grew to Rs 6370 crore, up 12.5 per cent as compared to Rs 5,660 crore in the corresponding quarter last fiscal.
EBITDA margins grew at 15.25 per cent as compared to 14.72 per cent, year-on-year (y-o-y). The company reported volume growth 6 per cent vs 10 per cent, y-o-y. The street was expecting volume growth of around 4 per cent.
Market breadth was positive on the NSE with 722 gainers against 567 losers.
ABDUL WAHEED
PGDM 2nd SEM.
IIMT COLLEGE OF MANAGEMENT
The 50-share index ended at 5,904.10, up 32.65 points or 0.56 per cent. It touched a high of 5,918.65 and a low of 5,868.80 in trade today.
The Sensex closed at 19,368.22, up 81.50 points or 0.42 per cent. It touched a high of 19,428.94 and a low of 19,284.40 in trade today.
The S&P BSE Midcap Index was up 0.72 per cent and the S&P BSE Smallcap Index was 0.32 per cent higher.
Among the sectoral indices, the S&P BSE FMCG Index was up 2.40 per cent, the S&P BSE Realty Index was 1.60 per cent higher and the S&P Power Index gained 1.52 per cent. The S&P BSE Metal Index was 0.85 per cent lower and the S&P BSE Healthcare Index slipped 0.08 per cent.
Hindustan UnileverBSE 6.98 % (7.23 per cent), Reliance Infrastructure (4.33 per cent), IndusInd BankBSE 4.40 % (3.68 per cent), Hero MotoCorpBSE 3.24 % (3.01 per cent) and Jaiprakash AssociatesBSE 2.66 % (2.80 per cent) were among the top Nifty gainers.
Hero MotoCorp gained on reporting better than expected net profit at Rs 574.23 crore versus Rs 603.59 crore for the same period last year. The company has hiked prices ranging from Rs. 500 to Rs. 1,500 across all models with immediate effect.
Jindal SteelBSE -4.24 % (4 per cent), NMDC (2.29 per cent), Coal India (1.85 per cent), Sun Pharmaceuticals (1.68 per cent) and Ambuja Cements (1.28 per cent) were among the top losers.
Shares of FMCG major Hindustan Unilever surged higher in trade on back of short coverings after its volume growth and margins surprised the street on the upside.
The company reported a net profit of Rs 787 crore, up 14.6 per cent, as compared to a net profit of Rs 686.6 crore in the corresponding quarter, a year ago. Net sales grew to Rs 6370 crore, up 12.5 per cent as compared to Rs 5,660 crore in the corresponding quarter last fiscal.
EBITDA margins grew at 15.25 per cent as compared to 14.72 per cent, year-on-year (y-o-y). The company reported volume growth 6 per cent vs 10 per cent, y-o-y. The street was expecting volume growth of around 4 per cent.
Market breadth was positive on the NSE with 722 gainers against 567 losers.
ABDUL WAHEED
PGDM 2nd SEM.
IIMT COLLEGE OF MANAGEMENT
Saturday, April 27, 2013
Sebi may get greater powers to check money-pooling frauds
NEW DELHI: Market regulator Sebi may get greater powers to check money-pooling frauds
by various entities across the country, as the government is
considering a major overhaul of regulations governing such schemes.
The proposed critical amendments to the securities laws, would also involve the capital markets regulator getting direct powers for attachment of properties, search and seizure of assets and powers to seek information from any entity in relation to its probes against erring persons and entities.
The amendments could be made to a host of regulations, including the Sebi Act, the Securities Contracts (Regulation) Act and the Depositories Act, a senior official said.
As a result, Sebi could be given powers for overall regulation and oversight of all kinds of money-pooling activities and the definition of Collective Investment Schemes would be expanded to include all kinds of activities involving collection of Rs 100 crore or more public money, he added.
While CIS operations already come under Sebi's jurisdiction, many companies try to challenge the regulator's actions taking advantage of loopholes in the existing norms and on the grounds of multiplicity of regulators.
The official said that Sebi has been given assurance by the government that the regulations would be amended soon. While proposals to these effects are being pursued by Sebi for almost four years now, a strong need to push with these changes has been felt in the recent months in the wake of a long-running tussle between Sebi and Sahara group.
The recent developments involving an alleged defrauding of lakhs of investors by West Bengal-based Saradha group and other entities in the state have further underscored the need to change the regulations to give greater powers to Sebi.
Sebi was earlier of the view that a separate regulator should be considered for all kinds of public money-pooling activities by non-listed entities under a separate act.
Alternatively, Sebi has been seeking amendment to the Sebi Act to widen the scope of CIS definition to include all kinds of money collection schemes.
As per the proposed changes, any pooling of funds under an investment scheme involving a collective amount of Rs 100 crore and above should be considered CIS activity, while Sebi would be empowered to specify the parameters for determining as to what constitutes pooling of funds from the public for the purpose of treating them as CIS operations.
Sebi had first proposed an overhaul of securities laws way back in June 2009, but the establishment of Financial Sector Legislative Reforms Commission (FSLRC) later led to the Finance Ministry asking Sebi to pursue only critical changes.
The Commission was asked to rewrite and harmonise the entire set of financial sector laws in the country, including those involving Sebi and the capital markets.
Later in June 2011, Sebi proposed only critical amendments to the securities laws that it felt were necessary and could not wait for the FSLRC recommendations.
The capital markets watchdog again took up the matter with the Centre in November 2012, pursuant to which the Finance Ministry sought some clarifications and a revised set of proposals was sent again by Sebi earlier this year.
In the meantime, FSLRC has submitted its recommendations, but the government has decided to move ahead with Sebi's proposals with regard to critical amendments in the securities laws as various steps suggested by the Commission need more deliberations and might take time, the official said.
The suggestions made by Sebi include powers similar to the Income Tax department for recovery of monetary penalties and setting up of special courts to deal with criminal prosecution for violation of securities laws. The proposals were sent to Finance Ministry for necessary amendments to relevant securities laws, after being discussed by Sebi board.
The amendments have been sought in view of the challenges faced by Sebi in areas such as the recovery and realisation of monetary penalties and regulation of pooling of monies from public by schemes, including those in the nature of collective investments, among others.
The proposed critical amendments to the securities laws, would also involve the capital markets regulator getting direct powers for attachment of properties, search and seizure of assets and powers to seek information from any entity in relation to its probes against erring persons and entities.
The amendments could be made to a host of regulations, including the Sebi Act, the Securities Contracts (Regulation) Act and the Depositories Act, a senior official said.
As a result, Sebi could be given powers for overall regulation and oversight of all kinds of money-pooling activities and the definition of Collective Investment Schemes would be expanded to include all kinds of activities involving collection of Rs 100 crore or more public money, he added.
While CIS operations already come under Sebi's jurisdiction, many companies try to challenge the regulator's actions taking advantage of loopholes in the existing norms and on the grounds of multiplicity of regulators.
The official said that Sebi has been given assurance by the government that the regulations would be amended soon. While proposals to these effects are being pursued by Sebi for almost four years now, a strong need to push with these changes has been felt in the recent months in the wake of a long-running tussle between Sebi and Sahara group.
The recent developments involving an alleged defrauding of lakhs of investors by West Bengal-based Saradha group and other entities in the state have further underscored the need to change the regulations to give greater powers to Sebi.
Sebi was earlier of the view that a separate regulator should be considered for all kinds of public money-pooling activities by non-listed entities under a separate act.
Alternatively, Sebi has been seeking amendment to the Sebi Act to widen the scope of CIS definition to include all kinds of money collection schemes.
As per the proposed changes, any pooling of funds under an investment scheme involving a collective amount of Rs 100 crore and above should be considered CIS activity, while Sebi would be empowered to specify the parameters for determining as to what constitutes pooling of funds from the public for the purpose of treating them as CIS operations.
Sebi had first proposed an overhaul of securities laws way back in June 2009, but the establishment of Financial Sector Legislative Reforms Commission (FSLRC) later led to the Finance Ministry asking Sebi to pursue only critical changes.
The Commission was asked to rewrite and harmonise the entire set of financial sector laws in the country, including those involving Sebi and the capital markets.
Later in June 2011, Sebi proposed only critical amendments to the securities laws that it felt were necessary and could not wait for the FSLRC recommendations.
The capital markets watchdog again took up the matter with the Centre in November 2012, pursuant to which the Finance Ministry sought some clarifications and a revised set of proposals was sent again by Sebi earlier this year.
In the meantime, FSLRC has submitted its recommendations, but the government has decided to move ahead with Sebi's proposals with regard to critical amendments in the securities laws as various steps suggested by the Commission need more deliberations and might take time, the official said.
The suggestions made by Sebi include powers similar to the Income Tax department for recovery of monetary penalties and setting up of special courts to deal with criminal prosecution for violation of securities laws. The proposals were sent to Finance Ministry for necessary amendments to relevant securities laws, after being discussed by Sebi board.
The amendments have been sought in view of the challenges faced by Sebi in areas such as the recovery and realisation of monetary penalties and regulation of pooling of monies from public by schemes, including those in the nature of collective investments, among others.
ABDUL WAHEED
PGDM 2nd SEM.
IIMT COLLEGE OF MANAGEMENT
Wednesday, April 24, 2013
HDFC bank will continue to grow at scorching pace with rural push
HDFC Bank had another strong quarter, reporting a 30% year-on-year growth in net profit,
in line with expectations, on the back of high loan growth, strong
margins and stable asset quality. But, the stock fell 1.7% in an
otherwise flat broader market, due to a lower-than-anticipated
sequential growth in non-interest income.
The non-interest income is an important revenue stream for the bank as it contributes 30% to the total revenue. The flat growth in the non-interest segment was due to moderation in fee growth and decline in foreign exchange (forex) income. Fee income, which forms the most important component of this income stream, declined sequentially for the first time in eight years, albeit marginally. Even forex income dropped due to lower volumes.
According to the bank's management, the volumes in its third-party sales are intact, but regulations regarding pricing and seasonal variations have resulted in the decline. This should improve as the market picks up, the management said. For the March quarter, the second-largest private lender clocked higher-than-expected net interest income, or NII, backed by high loan growth and high margins. The high margin of 4.5% was due to a change in the accounting policy, which considers acquisition cost of retail loans as operating expenses.
Earlier, the cost was netted off from the yield on loans. This not only resulted in higher net interest income but also a substantial jump in its operating expenses sequentially. The higher operating expenses also got reflected in its cost-to-income ratio, which inched upwards due to the massive network expansion the bank has undertaken, adding almost 200 branches this quarter.
The slow pick-up in the economy had a bearing on the bank's advances portfolio, with the share of its retail book increasing almost 300 basis points to 57% from a quarter ago. Personal loans, credit cards, gold loans and business banking were the main drivers of this segment. However, the commercial vehicle/commercial equipment (CV/CE) segment saw a sequential decline in growth rate.
ABDUL WAHEED
PGDM 2nd SEM.
IIMT COLLEGE OF MANAGEMENT
The non-interest income is an important revenue stream for the bank as it contributes 30% to the total revenue. The flat growth in the non-interest segment was due to moderation in fee growth and decline in foreign exchange (forex) income. Fee income, which forms the most important component of this income stream, declined sequentially for the first time in eight years, albeit marginally. Even forex income dropped due to lower volumes.
According to the bank's management, the volumes in its third-party sales are intact, but regulations regarding pricing and seasonal variations have resulted in the decline. This should improve as the market picks up, the management said. For the March quarter, the second-largest private lender clocked higher-than-expected net interest income, or NII, backed by high loan growth and high margins. The high margin of 4.5% was due to a change in the accounting policy, which considers acquisition cost of retail loans as operating expenses.
 |
Earlier, the cost was netted off from the yield on loans. This not only resulted in higher net interest income but also a substantial jump in its operating expenses sequentially. The higher operating expenses also got reflected in its cost-to-income ratio, which inched upwards due to the massive network expansion the bank has undertaken, adding almost 200 branches this quarter.
The slow pick-up in the economy had a bearing on the bank's advances portfolio, with the share of its retail book increasing almost 300 basis points to 57% from a quarter ago. Personal loans, credit cards, gold loans and business banking were the main drivers of this segment. However, the commercial vehicle/commercial equipment (CV/CE) segment saw a sequential decline in growth rate.
ABDUL WAHEED
PGDM 2nd SEM.
IIMT COLLEGE OF MANAGEMENT
Mini Indian Rupee futures launched in Dubai-:
a bid to further expand the reach of its Indian Rupee product offering, the Dubai Gold and Commodities Exchange (DGCX) has launched a Mini Indian Rupee Futures Contract (DINRM), it has been announced. "The Mini Indian Rupee futures contract has been designed to meet increasing demand
from market participants for a smaller product that allows them to
execute trading strategies without making high capital investments."
said Gary Anderson, CEO of DGCX. "Developed after close consultations
with our Members and market participants, we believe the contract will
particularly benefit SMEs, retail players and traders who import into
and export from India, as well as others who remit funds to India
regularly."
The first of its kind to be introduced in the region and outside of
India, the mini contract is one-tenth the size of the existing DGCX
Indian Rupee futures contract.
The smaller size of the contract will support retail remitters, individual investors and small and medium-sized businesses (SMEs) in cost-effectively managing currency risk exposure to the Indian Rupee, a statement released in Dubai said.
The innovative new contract is priced at Rs. 200,000 per lot compared to Rs. 2 million per lot for the existing regular DGCX Indian Rupee contract.
ARUSI
PGDM 2nd Sem
a bid to further expand the reach of its Indian Rupee product offering, the Dubai Gold and Commodities Exchange (DGCX) has launched a Mini Indian Rupee Futures Contract (DINRM), it has been announced. "The Mini Indian Rupee futures contract has been designed to meet increasing demand
The smaller size of the contract will support retail remitters, individual investors and small and medium-sized businesses (SMEs) in cost-effectively managing currency risk exposure to the Indian Rupee, a statement released in Dubai said.
The innovative new contract is priced at Rs. 200,000 per lot compared to Rs. 2 million per lot for the existing regular DGCX Indian Rupee contract.
ARUSI
PGDM 2nd Sem
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