Glenmark's unit in the US, received FDA approval to market in that country generic version of Forest Laboratories’ Campral Delayed Release Tablets, used for alcohol abstinence
Glenmark Pharmaceuticals on Monday said its unit received US Food and Drug Administration (FDA) nod to market generic version of Forest Laboratories’ Campral Delayed Release Tablets, a drug used for alcohol abstinence, in the American market.
The pharmaceutical company said its unit Glenmark Generics Inc has been granted final abbreviated new drug approval (ANDA) from the FDA for Acamprosate Calcium Delayed Release Tablets.
Based on IMS Health sales data for the 12-month period ending March 2013, Acamprosate, which is indicated for the maintenance of abstinence from alcohol in patients with alcohol dependence, garnered sales of $21 million.
The Mumbai-based firm’s current portfolio consists of 88 products authorised for distribution in the US market and 53 ANDAs are pending approval with the FDA.
At 3.10pm Monday, Glenmark Pharmaceuticals was trading 2.8% down at Rs552.5 on the BSE, while the 30-share Sensex was marginally up at 18,961.
SBI's first quarter net profit fell to Rs3,241.1 crore from Rs3,752 crore as its gross NPAs grew to 5.6% from 4.99%, a year ago period
State Bank of India (SBI), the country's largest lender, on Monday reported 13.6% fall in its first quarter net profit due to higher provisioning of non-performing assets (NPAs). During the quarter, SBI's gross NPAs increased to 5.6% from 4.99% a year ago.
For the quarter to end-June, the state-run lender said, its net profit fell 13.6% to Rs3,241.1 crore from Rs3,752 crore while its total revenues, including interest income, increased to Rs36,192.6 crore from Rs32,415.5 crore, same period last year.
Reflecting the impact of slowing economy, the bank’s gross NPAs rose to 5.56% of total advances against 4.99% in June 2012.
Of over Rs7,000 crore exposure to 17 lenders, SBI has the maximum exposure of over Rs1,600 crore in the now defunct Kingfisher Airlines.
During the first quarter, net interest income (NII) for SBI grew 3.5% while non-interest income grew strongly by 28.1%, likely aided by treasury gains.
On consolidated basis, SBI’s net profit during the June quarter fell 12% to Rs4,298.56 crore from Rs4,874.7 crore a year ago.
“On the asset quality front, SBI reported disappointed set of numbers, as slippages surged to 5.3% (annualised slippage rate of 2.7% in previous quarter) while recoveries and upgrades came in lower sequentially. Hence, gross NPA levels increased sequentially by 19.0%, while net NPA levels increased by much higher 36.6% quarter-on-quarter. Provisioning expenses increased by 16.7% year-on-year (yoy). Thus, bottom-line de-grew by 13.6% yoy. Considering recent macro developments in an overall weak economic environment, we remain cautious on asset quality pressures for the sector,” said a brokerage in a note.
At 3.00pm Monday, SBI was trading 2.8% down at Rs1615 on the BSE, while the benchmark Sensex was marginally up at 18,991.6.
While IRDA want banks to become insurance brokers, the banking regulator feels it would lead to conflict of interest. Even the Department of Financial Services (DFS) had questioned the rationale of insurers tying up with banks on a geographical basis
Insurance Regulatory and Development Authority (IRDA) has allowed banks to act as brokers and sell products of more than one insurer to increase the penetration of the sector across the country. Finance Minister P Chidambaram had favoured the idea of banks acting as brokers for selling products for penetration of insurance in the country. It will have to be seen if banks apply for broking license or continue to be corporate agents. In the present bancassurance model, banks are allowed to sell products of one life and one non-life insurance companies as a corporate agent.
Reserve Bank of India (RBI) has said that banks assuming the role of insurance brokers may also lead to conflict of interests. While the RBI approval is required for banks to become brokers, IRDA is of the opinion that in case of any dispute arising out of insurance transactions, its jurisdiction should prevail. It added that the laws applicable to insurance contracts shall be enforced and information in this regard shall be furnished to the RBI.
RBI's financial stability report’s Chapter III - Financial Sector Regulation and Infrastructure raises several crucial questions on bancassurance model’s use of unfair and restrictive practices.
Here are some important points raised in the report:-
Under the ‘bancassurance’ model, banks in India have been permitted to undertake insurance business as agents of insurance companies subject to certain conditions and without any risk participation since August 2000. As announced in the Union Budget 2013-14, it is proposed to permit banks to act as insurance brokers so that the entire network of bank branches will be utilised to increase the penetration of insurance services in the country. As insurance brokers, banks will be able to sell insurance products of any company, as against the restriction of only one company applicable under the agent-principal model.
While banks are well suited to distribute insurance products because of their wide network, several issues have risen regarding their conduct in the process, pertaining to mis-selling and certain restrictive / unfair practices (such as linking provision of locker facilities to purchase of insurance products, selling of unsuitable and/or multiple policies etc).
It was observed that in some cases, banks did not have clear segregation of duties of marketing personnel from other branch functions and bank employees were directly receiving incentives from third parties such as insurance companies, mutual funds and other entities for selling their products. In some cases direct incentives to the bank staff have created distortions in the sales structure.
According to IRDA’s Annual Report 2011-12, the maximum complaints in life insurance related to mis-selling, mainly pertaining to private sector, although state-owned LIC leads the business with over 70% share. Complaints were mainly in the nature of unfair trade practices and mis-selling of products (e.g. malpractices, actual product sold being different from what was proposed, single premium policy being issued as annual premium policy, surrender value being different from projected, free look refund not paid, misappropriation of premiums).
As a significant portion of private life insurance companies use banks as their corporate agents, there seems to be an urgent need to revisit the marketing and sales strategies used by the banks in pushing insurance products, especially since insurance is among the more complex financial products for common man to comprehend. The limits on commission and the operating expenses of insurance companies are laid down in the Insurance Act, 1938 and the Rules framed there under. The compliance with these limits is being monitored by IRDA on an annual basis, and instances of breach are dealt with through penal action. In the recent past, there have been instances of both insurance companies as also the corporate agents (banks) being penalised.
Last month, the IRDA guidelines on bancassurance were kept on hold-the Department of Financial Services (DFS) questioned the rationale of insurers tying up with banks on a geographical basis and asking for wider consultation with stakeholders. DFS feels that IRDA’s proposal to have a zone-wise tie-up with banks will be complicated. Several banks and insurance companies have raised concerns about logistical problems if the zone-wise tie-up is implemented. But, banks and insurers have their own reasons for preferring an open architecture or to remain with the existing exclusive one life and non-life insurer tie-up.