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The Finance Ministry has requested the Reserve Bank to relax capital adequacy norms for banks in line with the recommendations made earlier this month by the Basel Committee on Banking Supervision. Read more
Bank of India has increased the interest rate on bulk deposits of Rs 10 crore and above for one to less than two years maturity to 9 per cent (from 8.75 per cent) with effect from December 27. Read more
There is a difference of opinion between the chairman of the Insurance Regulatory and Development Authority (IRDA) and the finance ministry over the creation of a new post in the regulatory body. IRDA chief J Hari Narayan chose to stay away from a meeting to fill the new position even as the panel comprising bureaucrats shortlisted two candidates. Read more
The Finance Ministry’s eagerness to see banks shed their non-core business is not surprising. With Basel III norms kicking in from January 1, 2013, banks will need to not merely conserve their capital base, but beef it up to meet the additional requirements laid down under Basel III. That’s a tough call even for private sector banks. Read more
With the Parliament having approved the Banking Laws Amendment Bill 2011, the work on issuing new bank licenses is expected to pick up pace with the formation of a RBI and finance ministry committee that will look into all the aspects of this move. Read more
The new proposal to increase foreign investment in insurance may not mean that promoters of insurance companies get to cash in on a portion of their stake. That’s because the finance ministry may be inclining towards allowing additional foreign investment only though the issue of fresh equity, and not a stake sale. Read more
Premium collected by life insurance companies dropped 3.45 per cent in the April-October period due to various factors that are influencing the financial sector as a whole.
As per the data released by the Insurance Regulatory and Development Authority of India (IRDA), premiums collected by 23 private sector companies and lone state-owned LIC totalled Rs 53,814.09 crore during the period. Read more
A fresh tussle between the government and a regulator has burst out into the open, with the finance ministry allowing Life Insurance Corporation (LIC) to own up to 25% of a listed company over the objections of sector watchdog IRDA, which has blasted the decision. Read more
In a bid to develop the corporate bond market, insurance companies may be allowed to invest for a shorter period in infrastructure bonds. Also, these firms, along with mutual funds, may be permitted to act as market makers in the bond market. Read more
Cyclone Nilam has brought the insurance industry and the finance ministry closer on an agreement to set up an exclusive catastrophe pool to cover the losses that occur in natural disasters. Once implemented, a large percentage of house owners across India will have to start paying a premium towards the insurance cover with the balance being financed by the Central or state governments. Read more