Private life insurer Bajaj Allianz Life has declared bonuses amounting to Rs 1,156 crore to its policyholders. This includes a special one-time bonus of Rs 315 crore, which is over and above the regular bonus.
The company aims to ensure there is adequate support, in these unprecedented times, to its customers in achieving their life goals, the insurer said in a statement.
These bonuses are funded from the profits generated by the company's participating policyholders' funds for the year FY 2020-21. This move is expected to benefit nearly 12 lakh (11,99,612) policyholders, who have stayed invested and entrusted their faith in the company.
This is the 20th consecutive year the Company has declared a bonus and delivered long term value to policyholders.
The bonus declared by the company is for the policies of all par products, which are in-force for full sum assured as on March 31, 2021, and for which customers are paying premiums regularly. The one-off special bonus and the regular reversionary bonus are payable at the time of maturity or death of the policyholder.
Bajaj Allianz Life Insurance Managing Director and Chief Executive Officer Tarun Chugh said: "Our employees and our customers' Life Goals continue to be our key priorities as we collectively move ahead in these tough times. We want to assure each of them, especially our customers that we will stay by their side, and assure the best of our services and unwavering support towards keeping their Life Goals on track. We are sure that this one-off special bonus will not only make our customers happy, but will encourage several of our customers to stay invested in their Life Goals."
( Coursety IANS )
Equity shares of Dewan Housing Finance Corporation Ltd will be delisted from the stock exchanges going ahead, as part of the resolution plan of Piramal Capital & Housing Finance Ltd.
On Monday, the Mumbai bench of NCLT had approved the resolution plan of the Piramal Enterprises' subsidiary.
"As part of the Resolution Plan, the equity shares of the Company are proposed to be delisted. Appropriate disclosures in terms of Regulation 3(3) of the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009, shall be made following receipt of the copy of the Order by the National Company Law Tribunal approving the Resolution Plan," DHFL said in a regulatory filing.
The approval came after the National Company Law Appellate Tribunal (NCLAT) on May 25 stayed the NCLT order directing DHFL's Committee of Creditors (CoC) to consider the settlement of its former promoter Kapil Wadhawan.
Piramal Group turned out to the successful bidder for the bankrupt Dewan Housing Finance Corporation Ltd (DHFL) in January, but in a strange turn of events, the Mumbai-bench of NCLT on May 19 asked the lenders of the bankrupt DHFL to consider Wadhawan's settlement offer the settlement offer of former promoter Kapil Wadhawan.
Shares of DHFL hit the 10 per cent upper circuit on Tuesday. Around 10 a.m., its shares on the BSE were at Rs 22.85, higher by Rs 2.05 or 9.86 per cent from its previous close.
To provide greater flexibility in raising short term funds by regional rural banks, the Reserve Bank of India (RBI) on Friday decided to permit RRBs to issue Certificates of Deposit (CDs).
Regional Rural Banks are scheduled commercial banks of India that operate at regional level in different states of India. They were created to serve rural areas with basic banking and financial services.
RBI Governor Shaktikanta Das in his statement post the Monetary Policy Committee's bi-monthly meeting said that permission for CDs will facilitate greater flexibility in liquidity management.
Accordingly, RBI has also permitted all issuers of CDs to buy back their CDs before maturity, subject to certain conditions.
In December 2020, RRBs were permitted to access the liquidity windows of the Reserve Bank as well as the call/notice money market in order to facilitate more efficient liquidity management by these regional banks at competitive rates.
The World Bank Group and the International Monetary Fund (IMF) have called on countries anticipating excess Covid-19 vaccine supplies in the coming months to release their surplus doses as soon as possible to developing nations.
"The coronavirus pandemic will not end until everyone has access to vaccines, including people in developing countries," World Bank Group President David Malpass and IMF Managing Director Kristalina Georgieva said in a joint statement to the G7 industrialised countries on Thursday.
"Worldwide access to vaccines offers the best hope for stopping the coronavirus pandemic, saving lives, and securing a broad-based economic recovery," Xinhua news agency quoted quosted the statement as saying.
They noted that together with the World Health Organization (WHO) and World Trade Organization (WTO), the World Bank Group and IMF have urged international support for $50 billion of financing aimed at achieving more equitable access to vaccines and thus helping to end the pandemic everywhere.
"We are urging developing countries to move quickly to put in place vaccine procurement and distribution plans and communication efforts to convey the life-saving importance of approved Covid-19 vaccinations," the two heads continued.
They also urged vaccine manufacturers to prioritise the scale up of vaccine production, providing increased access for developing countries, adding that their multilateral organisations will work actively to encourage and support greater access.
"Distributing vaccines more widely is both an urgent economic necessity, and a moral imperative."
According to IMF estimates, a faster vaccination rollout could inject the equivalent of $9 trillion into the global economy by 2025, due to a faster resumption of economic activity.
In order to ensure seamless and uninterrupted transfer of government subsidies to beneficiaries, the RBI on Friday permitted availability of National Automated Clearing House (NACH) on all days of the week.
NACH, a bulk payment system operated by the NPCI, facilitates one-to-many credit transfers such as payment of dividend, interest, salary, pension, etc. This service is currently available on bank working days.
Announcing the MPC decision, RBI governor Shaktikanta Das said that NACH will now be made available on all days of the week effective from August 1, 2021.
He said that paart from facilitating a host of bulk payment, NACH has also helped transfer of government subsidies during the present COVID-19 in a timely and transparent manner.
In order to further enhance customer convenience, and to leverage the 24x7 availability of RTGS, NACH operation is being extended on all days, he said .
NACH also facilitates collection of payments pertaining to electricity, gas, telephone, water, periodic instalments towards loans, investments in mutual funds, insurance premium, etc. it has also emerged as a popular and prominent mode of direct benefit transfer (DBT) to large number of beneficiaries.
The relevant instructions and circulars for all these measures will be issued separately, a RBI statement said.
The Reserve Bank of India has retained its key short-term lending rates along with the growth-oriented accommodative stance during the second monetary policy review of FY22.
Accordingly, the Monetary Policy Committee (MPC) of the central bank voted to maintain the repo rate, or short-term lending rate, for commercial banks, at 4 per cent.
Likewise, the reverse repo rate was kept unchanged at 3.35 per cent, and the marginal standing facility (MSF) rate and the 'Bank Rate' at 4.25 per cent.
"The MPC also decided unanimously to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of Covid-19 on the economy, while ensuring that inflation remains within the target going forward," said RBI Governor Shaktikanta Das said in his post policy statement.
It was widely expected that MPC would hold rates and the accommodative stance.
"On balance, the MPC was of the view that at this juncture, policy support from all sides is required to regain the momentum of growth that was evident in H2:2020- 21 and to nurture the recovery after it has taken root," Das said in his post policy statement.
"Accordingly, the MPC decided to keep the policy rate at its current level of 4 per cent and to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of Covid-19 on the economy, while ensuring that inflation remains within the target going forward."
As of now, India suffers from a massive spike in Covid-19 infections.
Consequently, the situation has forced state governments to implement local lockdowns and travel restrictions which have started to slowdown economic activity.
This trend has impacted economic activity.
Accordingly, the RBI revised India's FY22 growth estimates to 9.5 per cent from 10.5 per cent.
It pointed out that expected healthy rural demand on the back of a normal Monsoon and pick up in exports should act as a tailwind for the country's growth.
Besides, he said vaccination process should help to normalise economic activity.
Furthermore, the RBI called upon Centre to give a policy push for exports.
"The need of the hour is for enhanced and targeted policy support for exports. It is opportune now to give further policy push by focusing on quality and scalability," the governor said in his post policy statement.
Additionally, the reserve bank pegged retail inflation for FY22 CPI-based inflation at 5.1 per cent.
The announcement, though, largely factored in by investors, evoked a Luke warm response at the stocks market.
Around 10.55 p.m., thr S&P BSE Sensex l traded at 52,219.08, lower by 13.35 points, or 0.026 per cent, from its previous close.
On the other hand, the Nifty50 of the National Stock Exchange traded at 15,692.95, up by just 2.60 points, or 0.02 per cent, from its previous close.
New Delhi, May 30 (IANS) LIC's holding across 296 companies where its holding is more than 1 per cent, slipped to an all-time low of 3.66 per cent as on March 31, 2021, down from 3.70 per cent as on December 31, 2020 and from all-time high of 5 per cent as on June 30, 2012, as per primeinfobase.com, an initiative of PRIME Database Group.
According to Pranav Haldea, Managing Director, Prime Database Group, this was on account of profit booking by India's largest institutional investor.
In INR value terms though, it reached an all-time high of Rs 7.24 lakh crore in quarter ending March 31, 2021, an increase of 6.30 per cent over previous quarter. Sensex and Nifty rose by 3.70 and 5.10 per cent respectively during this period. LIC also continues to command a lion's share of investments in equities by insurance companies (76 per cent share).
Holding of Insurance companies as a whole also declined to a 5 year low of 4.80 per cent as on March 31, 2021 down from 5.00 per cent as on December 31, 2020. In INR value terms, it went up by 3.09 per cent from the previous quarter to an all time high of Rs 9.48 lakh crores as on March 31, 2021
Holding of domestic Mutual Funds in companies listed on NSE also reduced to 7.23 per cent as on March 31, 2021 down from 7.42 per cent as on December 31, 2020.
According to Haldea, holding of Mutual Funds has now declined for four consecutive quarters, after 24 quarters of continuous rise (from 2.81 per cent as on March 31, 2014 to 7.96 per cent as on March 31, 2020). Net outflows by domestic Mutual Funds stood at INR 26,810 crore during the quarter, as retail investors booked profits. In INR value terms, the holding of domestic Mutual Funds went up by 4.81 per cent to Rs 14.30 lakh crore as on March 31, 2021 from INR 13.64 lakh crores on December 31, 2021.
Holding of Foreign Portfolio Investors (FPIs) stood at 22.60 per cent as on March 31, 2021, down from 22.74 per cent as on December 31, 2020, despite net inflows of Rs 55,741 crore during the quarter, according to Haldea. In INR value terms, FPI ownership also reached an all-time high of Rs 44.66 lakh crore as on March 31, 2021, up 6.77 per cent from Rs 41.83 lakh crore as on December 31, 2020.
According to Haldea, retail holding (individuals with up to Rs 2 lakh shareholding) in companies listed on NSE remained the same at 6.90 per cent as on March 31, 2021. In INR value terms though, retail holding in companies listed on NSE also reached an all-time high of Rs 13.63 lakh crore from INR 12.69 lakh crore on December 31, 2020.
On an overall basis, retail holding went up in 863 companies listed on NSE in the last 1 quarter. The average stock price of these companies in the same period increased by 5.52 per cent. On the other hand, retail holding went down in 713 companies. The average stock price of these companies increased by a much higher 15.57 per cent. According to Haldea, this further validates the oft-used phrase that retail buys at the peak and sells at lows.
The Reserve Bank of India (RBI) has extended the restrictions on Karnataka-based Millath Co-operative Bank by three months, till August 8, 2021.
As per RBI's directions, the co-operative bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise.
The bank would also not enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets.
Further, the central also imposed a withdrawal limit of Rs 1,000 from every savings or current account or any other deposit account.
The restrictions were first imposed in May, 2019 and have been extended thereafter. It was last extended till May 7, 2021.
The Rs 50,000 crore liquidity window offered by the Reserve Bank of India (RBI) to banks under priority-sector lending to augment Covid-19 healthcare infrastructure will help raise treatment capacity, and availability of medicines and medical equipment, in India, Crisil said on Friday.
Hospitals could be among the biggest beneficiaries as the incremental funding can potentially increase bed capacity in the country by 15-20 per cent, the ratings agency said.
Loans under the scheme, for tenures up to 3 years, are available to banks at the repo rate till March 31, 2022. Such loans would also be classified under priority sector. Consequently, banks are expected to extend these loans below current interest rates for companies engaged in health care activities. These include makers and suppliers of vaccines and drugs; hospitals; pathology labs; suppliers of oxygen; makers of emergency medical equipment; logistics firms; and Covid-19 patients.
As many as 354 CRISIL-rated companies with aggregate bank exposure of Rs 40,000 crore will be eligible for such loans. Though pharmaceutical firms account for 68 per cent of rated bank exposure, hospitals (24 per cent of rated exposure) are likely to avail majority of the funding available.
The borrowing cost of hospitals rated by CRISIL are 10.5-11 per cent, and the new loans taken for expansion under this RBI scheme could be 300-350 basis points cheaper, leading to substantial interest savings.
Says Subodh Rai, Chief Ratings Officer, CRISIL Ratings, "Increased availability of funds at low cost will incentivise hospitals to augment beds, oxygen storage, ICUs and critical medical equipment. Even if half of the funding available is used to add hospital beds through brownfield expansion, it will mean 5 lakh incremental beds, or 15-20 per cent of India's current capacity."
In comparison, for entities in other health care related sectors such as pharmaceuticals, the capital requirements for enhancing production capacity of critical Covid-19 related drugs is not very high. Further pharmaceutical companies, owing to their strong credit profiles and availability of export credit facilities, have a relatively lower average cost of borrowing (8.0-8.5 per cent). Thus, majority of pharmaceutical companies may not be keen to take on substantial debt under the RBI window to fund expansion.
Also, only a few companies are manufacturing Covid-19 vaccines and these have availed of government advances/grants for funding their requirement of Rs 5,000 crore.
While incentives under the liquidity window are attractive, hospital firms would carefully evaluate decisions considering sustainability of demand and availability of critical resources such as manpower and equipment.
Says Anuj Sethi, Senior Director, CRISIL Ratings: "Augmenting healthcare infrastructure has challenges beyond capital requirements. Higher lead times for equipment and availability of qualified manpower are critical factors that can create bottlenecks. This is especially true in the case of enhancing production of critical drugs such as Remdesivir, where the outlay to increase the production capacity of 7 crore doses is only Rs 200-250 crore, but lead times for ordering and installation of machines exceed a year."
All said, it is still early for healthcare players to evaluate their expansion plans. There will be more clarity once banks and lending institutions announce their policies for loans, and eligible firms decide on capital spends.
Independent think-tank Imagindia Institute has called upon the Reserve Bank to delay the ban on Amex, Diners Club.
Recently, the RBI ruled to impose a ban on American Express Co and Diners Club International from issuing new cards in India.
The order will take effect on May 1.
Accordingly, both the companies have been found non-compliant with India's data-storage rules, announced in 2018, which order payment systems providers to store all data generated by them on servers in India, and will be restricted from adding new customers to their card networks from May 1.
"Unprecedented times call for agile and blue-sky thinking. The U.S. administration has just days ago stepped forth with a massive humanitarian support for India's Covid-19 crisis, and so has corporate America as we are seeing from reports coming in," said Robinder Sachdev, President, The Imagindia Institute, in a statement.
"In such times as these, it makes eminent sense for India to delay or give more time for negotiations and compliances, on any contentious issues in US-India relations which may not be of urgent or deep-national interest, nature."
According to Sachdev, the mosaic and opto-politics of US-India relationship is very complex, and so is the relationship of corporate America with the US administration.
"Without distracting from the Herculean task of Covid-19 relief in India, a goodwill gesture of strategic and diplomatic signalling by India to delay any adverse rulings on US companies, unless very urgent, will therefore be helpful for all parties concerned."
"We would like to also inform that Imagindia has no past, present relation or interest in any of the companies mentioned."
As per the statement, Amex and Diners Club are being penalised under India's data-storage rules that require all digital payment networks to store their Indian payments data locally so that the regulator can have "unfettered supervisory access".
Initially, the institute said the US companies had strongly opposed the directive, but now say that they have been demonstrating progress towards complying with the rules.
"If so be the case, then some more time can be given to them to upgrade their compliances, and in the process India will also convey to the U.S. that our two countries have mutual empathy, and a mature partnership," Sachdev added.
Commercial banks will have to take prior approval of the Reserve Bank of India (RBI) for appointment of Statutory Central Auditors (SCA) and Statutory Auditors (SAs).
The RBI on Tuesday issued of guidelines for appointment of statutory central auditors (SCAs) and statutory auditors (SAs) of commercial banks, excluding regional rural banks, UCBs and NBFCs, including Housing Finance Companies.
Banks should apply to Department of Supervision, RBI before July 31, of the reference year and the Public Sector Banks (PSBs) shall approach RBI within one month of receipt of list of eligible audit firms from RBI.
While NBFCs do not have to take prior approval of RBI for appointment of statutory auditors, all NBFCs need to inform RBI about the appointment of the statutory auditors for each year by way of a certificate in 'Form A' within one month of such appointment.
For entities with asset size of Rs 15,000 crore and above as at the end of previous year, the statutory audit should be conducted under joint audit of a minimum of two audit firms. All other entities should appoint a minimum of one audit firm for conducting statutory audit.
Further, it shall be ensured that joint auditors of the entity do not have any common partners and they are not under the same network of audit firms.