IndusInd Bank has entered an agreement with Deutsche Bank to buy its credit card business in India
IndusInd Bank Ltd has entered an agreement with Deutsche Bank to buy its credit card business in India. The entry of IndusInd Bank in the credit card business will significantly enhance its bouquet of product offerings to its customers. With this acquisition, IndusInd Bank is planning to expand its customer-centric financial products and become a full service bank.
Under the agreement, IndusInd Bank will get access to close to 200,000 card customers and the entire operating platform of the cards franchise including talent and technology.
Romesh Sobti, MD & CEO, IndusInd Bank said, "We are happy to have come to an agreement with Deutsche Bank on acquiring this business. This will accelerate the launch of credit cards which we consider a critical link in our suite of consumer banking products."
Sumant Kathpalia, head consumer banking, IndusInd Bank said, "The strategic intent behind this acquisition is to offer targeted credit card products for chosen client segments. Cards are an important element in our segmented offering. Deutsche Bank has a stable cards portfolio and the acquisition gives us a head start in building the cards business."
On Monday, IndusInd Bank ended 1.05% up at Rs274.30 on the Bombay Stock Exchange, while the benchmark Sensex declined 0.97 to 19,262.54.
IRDA said that policy holders will gradually have to pay more for motor, health and other general insurance covers as costs would go up due to companies setting aside higher funds for claim settlements
Insurance regulator Insurance Regulatory and Development Authority (IRDA) said that policy holders will gradually have to pay more for motor, health and other general insurance covers as costs would go up due to companies setting aside higher funds for claim settlements.
"I think the demand and supply position in the non-life industry will be such that prices should harden and I expect to see evidence of that in the course of next few years. And I would like to make it even harder as we go along," Irda Chairman J Harinarayan said.
Harinarayan, who was speaking at the "Ficci National Conference on Insurance", said the non-life insurance companies would need to bring in changes in marketing, pricing and modes of claim settlement to become profitable.
"Because of the requirement of increase in provisioning, there will be a reduction in capacity and because of that there will be a hardening of prices," Harinarayan added.
The IRDA has already proposed to increase provisioning requirement for insurers providing motor insurance covers. IRDA had increased the provisions made for motor pool to 153% of book value for the four years till 31 March 2010, against 126% maintained by companies.
This is aimed at enhancing solvency margins and make higher provisioning for third-party motor pool.
Solvency margin is the minimum surplus on the insurer's assets over liability set by the regulator and the insurance companies are estimated to have provided about Rs3,500 crore till 31 March 2010, for maintaining this margin.
Harinarayan said in the next three years the insurance companies will see changes in distribution set up, marketing techniques, channels of distribution and also terms of regulatory development.
"The agency model that we see right now has serious deficiencies and that requires to be strengthened. I do not think the agency distribution model is going to last very long," he said.
He said agency model in the traditional form has vanished in large markets across the world. "...I do not see why India will be any exception to that particular development," the IRDA chief added.
He said even as the market widens, "it is not going to go down to the poorest of poor".
"The total size of the market we are looking at (for insurance penetration) may be 500-600 million in terms of kind of product we have to offer," Harinaryan said.
Going forward in general insurance space, he said, the health and annuity or pension-linked insurance products will gain predominance.
As per the Central Statistical Organisation's provisional data, the Index of Industrial Production (IIP) has grown by 7.8% during April-February period in 2010-11 compared to 10% in the same period in the previous fiscal
New Delhi: Pinning hopes on smart recovery in the farm output, the Planning Commission of India on Monday exuded confidence that the country would clock over 8.5% economic expansion in 2010-11 despite moderation in industrial growth, reports PTI.
According to Planning Commission deputy chairman Montek Singh Ahluwalia, more than the anticipated growth in the farm sector will make up for the shortfall in the industrial output.
"Yes, it will be because I think agriculture growth will be higher than the earlier forecast (of 5.4%). I don't think that (industrial growth below 8% level) will make a difference," he said when asked if the current level of industrial growth will be sufficient to achieve the projected 8.5% gross domestic product (GDP) growth for 2010-11.
The Central Statistical Organisation's advance estimates indicate that agriculture and allied sectors are expected to grow at 5.4% in 2010-11 compared to 0.4% in the previous fiscal. It has also pegged the economic expansion at 8.6% in 2010-11.
Earlier, Mr Ahluwalia had said that an annual industrial growth of 8%-9% was necessary to achieve the targeted economy growth.
As per the provisional data released here, Index of Industrial Production (IIP) has grown by 7.8% during April-February period in 2010-11 compared to 10% in the same period in the previous fiscal.
The industrial growth has been showing a steady declining trend since it peaked at 15.08% in July last year.
The IIP number slipped to 6.9% in August and 4.4% in September. Some ray of hope was seen when the IIP growth crossed 11% in the month of October. But after that it has declined significantly.
The industry grew by 3.6% in November and 2.53% in December. Despite the marginal recovery in January and February with IIP growth at 3.9% and 3.7%, respectively, there have been fears that annual industrial growth may lag behind the target and drag the economic growth.
But now the unexpected spurt in farm production may fill for the gap created by slow industrial activity.
Meanwhile, Mr Ahluwalia has expressed hope that industry would record a robust growth of 9% during the current fiscal.
"In 2011-12 we can get growth rate of industry, which is something of the order of 9% or so," he added.
On farm sector growth, Mr Ahluwalia said, "It is not possible to repeat the agriculture growth rate (of 5.4% of last fiscal) in 2011-12, as you will be seeing a base level effect also."