Consumer Issues
IGI Airport charge hike has hit our plans: Malaysian Airlines

Malaysian Airlines said it is not opposed to an increase in airport charges in India but it should be manageable, otherwise it may have to re-think its strategy

New Delhi: The exorbitant increase in Delhi airport charges and demand for a hike by other major airports has forced Malaysian Airlines to rethink its India strategy, reports PTI.
"The hike in airport charges at Delhi has jeopardised our plans to increase flights from here. Other airports are also demanding a hike, so if it's not manageable, then we have to rethink our strategy," Mohamed Sathik Ali, the airline's general manager (North India), told PTI.
Though the airline has no current plans to invest in any Indian carrier, it also did not discount such an opportunity in the future.
The Airports Economic Regulatory Authority (AERA) had allowed Delhi International Airport Ltd to increase overall airport charges for facilities like landing, parking and housing by a staggering 346% for next two years.
Recently, Mumbai Airport has sent a proposal for a 660% rise in aeronautical charges to the AERA, and after modernisation of Chennai and Kolkata airports, operator Airports Authority of India has also asked for increase in charges.
"India is a key market for us. We are here to grow. We are not opposed to an increase in charges but it should be manageable," Ali said, adding, "Only if we grow, we will be able to bring more tourists to India." 
Malaysian Airlines, which was operating 40 flights a week from five Indian cities, has increased it to 50 from September.
Asked about plans to invest in any Indian carrier following the government's FDI announcement in aviation sector, Ali said, "At the moment we don't have a concrete plan but we are not discounting it. If in future we see an opportunity we would definitely go for it." 
The airline has plans to operate from Kochi, Kolkata and Ahmadabad by next year and hopes to increase its frequency to 70 weekly flights by operating twice daily from Delhi, Mumbai, Chennai, Hyderabad and Bangalore.
"We have partnered with Malaysian government's 'Visit Malaysia' campaign for 2013-014 and under this, a Malaysian food festival is on in the national capital till 24th October," Ali said, adding people can enjoy exotic Malay food.


HDFC Bank to double cash payment fees for credit cards

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Seven banks among top-ten commission earners for mutual funds

HSBC, HDFC Bank, Citibank, StanChart, Axis Bank, ICICI Bank and Kotak Mahindra Bank are among the top ten commission earners for selling mutual funds during FY12

New Delhi: Banks seem to be taking away all the cream when it comes to earning commissions from sale of mutual funds, as there are as many as seven banks among the top-ten mutual fund distributors in terms of commissions paid to them, reports PTI.
As per the latest disclosure of commission and expenses paid by various fund houses to their distributors, HSBC, HDFC Bank and Citibank top the chart for the last fiscal ended 31 March 2012.
Besides, there are four other banks among the top-ten commission earners -- Standard Chartered Bank, Axis Bank, ICICI Bank and Kotak Mahindra Bank.
According to the distribution commission disclosure made by the industry body Association of Mutual Funds in India (AMFI), there were seven banks among the top-ten distributors on this parameter in the previous fiscal 2010-11 as well.
Besides, all these seven banks recorded an increase in the payments paid to them by the fund houses for distribution of mutual fund products, even as the industry had been raising concerns till recently about their businesses being hurt by the regulations regarding lack of sufficient incentives for sale of mutual fund products.
There has been only one change among these seven banks with ICICI Bank replacing public sector giant SBI in the top-ten. SBI is the only major bank to have witnessed a decline in the mutual fund distribution payments made to it during the last fiscal, pushing it out of the top ten.
AMFI has listed out a total of 269 mutual fund distributors, who were collectively paid about Rs1,860 crore during 2011-12 towards commission and expenses towards sale of MF products. These distributors recorded an increase of about Rs163 crore in such payments from Rs1,697 crore in the previous fiscal 2010-11.
The list for 2011-12 only includes those distributors who are operating from more than 20 locations. 
As per AMFI data, a total of 403 distributors were paid a total commission of Rs1,773 crore in the fiscal 2010-11, but many of them have not been named in the list for 2011-12.
The seven banks, which are part of the top-ten, were together paid Rs662 crore, accounting for more than one-third of the commission paid to all the distributors during 2011-12.
Besides these seven, other banks which figured high on the list for 2011-12 included Deutsche Bank, Royal Bank of Scotland, State Bank of India, BNP Paribas, ING Vysya Bank, Indusind Bank, IDBI Bank, DBS Bank, Canara Bank, Union Bank of India, Barclays Bank, Yes Bank, Bank of India, Punjab National Bank, Bank Of Baroda, State Bank of Patiala and Development Credit Bank.
About 25 banks were collectively paid about Rs870 crore, accounting for nearly half of the total commission payments made by the fund houses during 2011-12 to all the distributors put together.
The non-bank distributors that figured among the top-ten in the last fiscal included NJ IndiaInvest, JM Financial and ICICI Securities Ltd.
Other such major distributors were DSP Merrill Lynch, Bajaj Capital, SPA Capital, Aditya Birla Money Mart, Karvy Stock Broking, Prudent Corporate Advisory Services, IIFL Wealth Management, Anand Rathi Financial Services, ENAM Securities, Pioneer Client Associates, RR Investors Capital Services, Wealth Advisors (India), Bluechip Corporate Investment Centre, Barclays Securities (India) and Credit Suisse Securities India.
Among the top-ten, only JM Financial saw its payments decline during 2011-12, while Citibank, HSBC, ICICI Bank, Axis Bank and HDFC Bank topped the list in terms of increase in their payments.
In the previous fiscal 2010-11, the highest commission was paid to HSBC, followed by HDFC Bank, NJ IndiaInvest, Citibank, Standard Chartered Bank, JM Financial Services, Kotak Mahindra Bank, Axis Bank, Bajaj Capital and SBI in the top ten.
The seven banks, which figured among the top ten in 2010-11, accounted for about 29% of total commission in that year, which rose to nearly 35% in 2011-12.
In the year 2010-11, a total of about 30 banks were paid a total amount of about Rs 690 crore, accounting for close to 34% of cumulative commission paid by the fund houses that year, indicating a significant rise in the share of banks in the mutual fund commissions in the last fiscal.



Vikas Gupta

4 years ago

About Indusind Bank, After discussing with lot of AMC Officials & with my personal experience, I have concluded that The bank is not following Ethical practices as a Banker as well as Mutual Fund Broker. The Bank calls its customers whose Clearing Cheques present in their Bank as Clearing house of MF Investments & force them to stop them & invest through them & if somebody sends the application by courier to some other place & the cheques is cleared through non Home branch, then after sometime, these customers are forced to redeem their investments through any other intermediatory & invest through the Bank only. I have complained the Bank CEO Directly as well as through moneylife but no response at all. So all Financial Advisors are requested to be cautious of their investors having their Bank Accounts in IndusInd Bank Branches. Firstly, I was thinking that it is happenning in Rohtak(Haryana State) Branch only but after discussion with lot of AMC Officials, I have come to know that this is the general practices of IndusInd Bank nationwide. They are working against the RBI as well as SEBI/AMFI rules openely & nobody dares to punish these malpractices.

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