19-Nov-2011
Source : PTI
The Reserve Bank has said it will shortly issue Rs 1,000 and Rs 10 notes incorporating the rupee symbol, which was approved last year.
The Indian rupee got an unique symbol -- a blend of the Devanagri ’Ra’ and Roman ’R’ -- last year joining elite currencies like the US dollar, euro, British pound and Japanese yen in having a distinct identity.
The Rs 1,000 notes will be of the Mahatma Gandhi-2005 Series bearing the signature of RBI Governor D Subbarao and with the year of printing mentioned on the back of the banknote, the apex bank said in a statement .
The design of these notes to be issued is similar in all respects to the existing Rs 1,000 in Mahatma Gandhi Series -2005 issued earlier, except for the rupee symbol.
However, all the bank notes in the denomination of Rs 1,000 issued by the RBI in the past will continue to be legal tender.
In another release, the central bank said the new Rs 10 bank notes with the rupee symbol, with the inset letter ’R’, will also be released shortly.
The Rs 10 notes will also bear the signature of Subbarao and the year of printing on the back side.
All the bank notes in the denomination of Rs 10 issued by the RBI in the past will continue to be legal tender.
The new symbol, designed by Bombay IIT post-graduate D Udaya Kumar, was approved in July 2010
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Tuesday, November 22, 2011
LIC likely to introduce four new products
18-Nov-2011
Source : Business Standard
By Shashikant Trivedi,
In view of the stable market scenario at present and sound economic conditions, LIC (Life Insurance Corporation) has planned to introduce at least four more products in the conventional and non-conventional category.
The insurance giant is planning to introduce a new pension system on pilot basis to encourage people from the unorganised sector to voluntarily save for their retirement. The insurance major will not enter banking business but its subsidiary is in process of obtaining banking license.
Speaking to Business Standard, LIC managing director AK Dasgupta said, “It is the right of every investor to enter the market, it is not going down further. The fundamentals of the market are very strong. Market conditions are very favourable for investors if they want to stay for long. They can invest in conventional and non-conventional products, provided they have a proper strategy.”
In view of the favourable conditions, he said, it was the right time for LIC to introduce new products. Without naming the products he said, “There will be at least four products in both the categories and at least one for women, though we have one of the best products for women, Jeevan Bharti, available in the insurance sector.”
When asked if it was a strategy to mitigate the lower premium figures, he said LIC’s premium income was down since investors entered the market when it had been touching as high as the 22,000 mark. “They (investors) wanted to make short term profits. The situation is not the same now. We want to ensure a significant market share to close the current financial year.” He ruled out LIC’s direct entry into banking business but said, “LIC Housing Finance will soon enter the banking sector.”
On a new initiative called ‘Swavalamban’, to be regulated by Interim Pension Fund Regulatory and Development Authority (PFRDA), he said, “We have chosen a few districts across the country and initiated the process for the product for people of the unorganised sector. If a subscriber invests Rs 1,000 in the product, the Central government will contribute an equal amount. The contribution by the government of India will be available for the current financial year and three years thereafter. Any citizen, who is not part of any statutory pension scheme of the government and contributes between Rs 1,000 and Rs 12,000 per annum, can join the Swavalamban Scheme.”
Expressing his dissatisfaction over the central zone, Dasgupta said, “There is enough scope for them to do business by any channel, be it direct marketing for any other alternate channel
Source : Business Standard
By Shashikant Trivedi,
In view of the stable market scenario at present and sound economic conditions, LIC (Life Insurance Corporation) has planned to introduce at least four more products in the conventional and non-conventional category.
The insurance giant is planning to introduce a new pension system on pilot basis to encourage people from the unorganised sector to voluntarily save for their retirement. The insurance major will not enter banking business but its subsidiary is in process of obtaining banking license.
Speaking to Business Standard, LIC managing director AK Dasgupta said, “It is the right of every investor to enter the market, it is not going down further. The fundamentals of the market are very strong. Market conditions are very favourable for investors if they want to stay for long. They can invest in conventional and non-conventional products, provided they have a proper strategy.”
In view of the favourable conditions, he said, it was the right time for LIC to introduce new products. Without naming the products he said, “There will be at least four products in both the categories and at least one for women, though we have one of the best products for women, Jeevan Bharti, available in the insurance sector.”
When asked if it was a strategy to mitigate the lower premium figures, he said LIC’s premium income was down since investors entered the market when it had been touching as high as the 22,000 mark. “They (investors) wanted to make short term profits. The situation is not the same now. We want to ensure a significant market share to close the current financial year.” He ruled out LIC’s direct entry into banking business but said, “LIC Housing Finance will soon enter the banking sector.”
On a new initiative called ‘Swavalamban’, to be regulated by Interim Pension Fund Regulatory and Development Authority (PFRDA), he said, “We have chosen a few districts across the country and initiated the process for the product for people of the unorganised sector. If a subscriber invests Rs 1,000 in the product, the Central government will contribute an equal amount. The contribution by the government of India will be available for the current financial year and three years thereafter. Any citizen, who is not part of any statutory pension scheme of the government and contributes between Rs 1,000 and Rs 12,000 per annum, can join the Swavalamban Scheme.”
Expressing his dissatisfaction over the central zone, Dasgupta said, “There is enough scope for them to do business by any channel, be it direct marketing for any other alternate channel
Govt nudges LIC to buy 10% stake in Kingfisher
21-Nov-2011
Source : Business Standard
In an interesting turn of events, the government has decided to ask the Life Insurance Corporation (LIC) to consider picking up 10 per cent stake in the troubled Kingfisher Airlines.
“The government has asked LIC to consider it, but the final decision will be taken by the insurer,” said an official familiar with the development. “If a company like LIC, the largest domestic institutional investor, puts money in Kingfisher Airlines, it will give confidence to the lenders as well,” he added.
Its lenders, who hold around 23 per cent of the debt-laden airline, have asked the promoters to bring in equity before they lend more. LIC, on the other hand, has enough headroom in its equity investment target for the current financial year. Given the attractive valuation, it may get a good bargain.
NEW PLAN TAKES FLIGHT
* LIC might buy up to 10% stake in Kingfisher Airlines
* By the present market cap, the deal would be valued at Rs 120-125 crore
* Banks have asked the airline to bring in equity worth Rs 400 crore
* Kingfisher Airlines’ total debt requirement is around Rs 2,200 crore
* Banks hold 23% stake in the airline
Going by the present market valuation, it could be quite a buy for LIC, as the airline’s share price has tanked 62 per cent in the current financial year to Rs 24.95 a share on Friday from Rs 66.05 on April 1. Going by the present market value, LIC would be required to invest Rs 124 crore for 10 per cent stake. An LIC official said the institution was yet to take a call but it was an option. “We have to analyse whether it fits into our investment strategy, where we see long-term value in a company. We are closely watching the developments surrounding the company,” said an LIC official.
The official declined to comment on whether it was a mandate from the government to invest in the airline, but added whenever LIC planned significant exposure in a particular company (say, 5-10 per cent stake) it kept the regulator and the government in the loop. When contacted, Vijay Mallya, the UB Group chairman and promoter of Kingfisher Airlines, said the company had not approached LIC in that regard.
Mallya held meetings with banks on Friday and sought a working capital loan of Rs 400 crore to meet day-to-day expenses, over and above letters of credit and guarantees worth Rs 445 crore, bankers familiar with the development said.
The banks led by State Bank of India, which have lent close to Rs 7,000 crore to the company, asked the promoters to bring in equity worth Rs 400 crore before any further loans. At present, LIC can invest up to 10 per cent of capital employed by the investee company, or 10 per cent of the fund size in a corporate entity, whichever is lower. The capital employed includes share capital, free reserves and debentures or bonds.
During 2010-11, LIC invested Rs 1.96 lakh crore, of which Rs 43,000 crore was invested in equities. In the current financial year, the insurer has plans to invest a similar amount in equities. However, given the volatile nature of the equity market, during the first six months of the current financial year, LIC has invested only around Rs 15,000 crore in equities. The total equity investment in the same period last year stood at Rs 54,000-55,000 crore.
Source : Business Standard
In an interesting turn of events, the government has decided to ask the Life Insurance Corporation (LIC) to consider picking up 10 per cent stake in the troubled Kingfisher Airlines.
“The government has asked LIC to consider it, but the final decision will be taken by the insurer,” said an official familiar with the development. “If a company like LIC, the largest domestic institutional investor, puts money in Kingfisher Airlines, it will give confidence to the lenders as well,” he added.
Its lenders, who hold around 23 per cent of the debt-laden airline, have asked the promoters to bring in equity before they lend more. LIC, on the other hand, has enough headroom in its equity investment target for the current financial year. Given the attractive valuation, it may get a good bargain.
NEW PLAN TAKES FLIGHT
* LIC might buy up to 10% stake in Kingfisher Airlines
* By the present market cap, the deal would be valued at Rs 120-125 crore
* Banks have asked the airline to bring in equity worth Rs 400 crore
* Kingfisher Airlines’ total debt requirement is around Rs 2,200 crore
* Banks hold 23% stake in the airline
Going by the present market valuation, it could be quite a buy for LIC, as the airline’s share price has tanked 62 per cent in the current financial year to Rs 24.95 a share on Friday from Rs 66.05 on April 1. Going by the present market value, LIC would be required to invest Rs 124 crore for 10 per cent stake. An LIC official said the institution was yet to take a call but it was an option. “We have to analyse whether it fits into our investment strategy, where we see long-term value in a company. We are closely watching the developments surrounding the company,” said an LIC official.
The official declined to comment on whether it was a mandate from the government to invest in the airline, but added whenever LIC planned significant exposure in a particular company (say, 5-10 per cent stake) it kept the regulator and the government in the loop. When contacted, Vijay Mallya, the UB Group chairman and promoter of Kingfisher Airlines, said the company had not approached LIC in that regard.
Mallya held meetings with banks on Friday and sought a working capital loan of Rs 400 crore to meet day-to-day expenses, over and above letters of credit and guarantees worth Rs 445 crore, bankers familiar with the development said.
The banks led by State Bank of India, which have lent close to Rs 7,000 crore to the company, asked the promoters to bring in equity worth Rs 400 crore before any further loans. At present, LIC can invest up to 10 per cent of capital employed by the investee company, or 10 per cent of the fund size in a corporate entity, whichever is lower. The capital employed includes share capital, free reserves and debentures or bonds.
During 2010-11, LIC invested Rs 1.96 lakh crore, of which Rs 43,000 crore was invested in equities. In the current financial year, the insurer has plans to invest a similar amount in equities. However, given the volatile nature of the equity market, during the first six months of the current financial year, LIC has invested only around Rs 15,000 crore in equities. The total equity investment in the same period last year stood at Rs 54,000-55,000 crore.
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