Companies & Sectors
Jain Irrigation, partners to invest Rs100 crore in NBFC venture

By March 2014, the total investment by all the shareholders in the NBFC will be Rs200 crore and out of that Jain Irrigation's contribution would be about half

New Delhi: Jain Irrigation Systems along with other partners will invest Rs100 crore to roll out a new non banking financial company (NBFC) soon for providing loans to farmers, said a PTI report quoting a top official from the company.

Last week, Jain irrigation had announced it has got RBI's permission to start a NBFC 'Sustainable Agro-commercial Finance Ltd (SAFL)'.

The company had said the new NBFC would be formed in a joint venture with promoter entities and International Finance Corporation (IFC).

"In the next few months, we will together invest Rs100 crore in SAFL for the disbursal of farmer loans," Jain Irrigation Managing Director Anil Jain told PTI.

He said by March 2014, the total investment by all the shareholders in the NBFC will be Rs200 crore and out of that Jain Irrigation's contribution would be about half.

Jain Irrigation will have up to 49% stake in the JV, he added.

When asked whether the NBFC will rope in more partners, Jain said that "discussions are on with banks including foreign banks and financial institutions".

Jain Irrigation plans to launch its NBFC post monsoon from Maharashtra where 40 offices would be opened by the end of this year. The target is to have a pan India presence in the next 3-4 years through a network of around 150 offices.

The NBFC will offer products like agri project financing, contract farming, small business loans, solar pumps and appliances financing and third party tie-ups.

The Jalgaon-based company manufactures drip and sprinkler irrigation systems, besides agro-processed products like dehydrated vegetables and fruits.

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Clearing Corp launches trade repository for OTC forex derivatives

The trade repositories will be launched in phases, starting with inter-bank forex forwards and swaps in the US dollar-rupee pair, and then go on to other areas

Mumbai: The Clearing Corp of India (CCIL) on Monday launched a trade repository for over the counter (OTC) foreign exchange derivatives, which will help bring in greater transparency, reports PTI.

Trade repositories (TR) maintain a centralised electronic database of OTC derivatives transaction data, providing a ringside view of market concentration, which helps in risk reduction.

The repository was launched in presence of RBI deputy governor Subir Gokarn at the CCIL, which facilitates clearing and settlement of transactions in g-secs, money market instruments and foreign exchange products.

CCIL said, the TR will help the RBI in effective monitoring of systemic risk as it gives clarity on trade positions, prices and transaction volumes.

It added that the establishment of the TR is in line with a commitment of the G-20 countries following the financial crisis of 2008, wherein every member country reports all OTC derivative contracts to TRs.

CCIL said the TRs will be launched in phases, starting with inter-bank forex forwards and swaps in the US dollar-rupee pair, and then go on to other areas.

"The services are being launched in phases to enable banks to ready their systems to report the data to CCIL," it said.

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Swiss banks' foreign client assets dip to 4-year low

The share of foreign client assets in Swiss banks dropped to 51% of their total asset under management at the end of 2011

New Delhi: Amid growing global scrutiny of overseas funds deposited in Swiss banks, the quantum of total foreign assets managed by them has dipped by nearly 300 billion Swiss francs (about Rs20 lakh crore) since 2008, reports PTI.

Also, the share of foreign client assets in Swiss banks dropped to 51% of their total asset under management at the end of 2011 -- the lowest in four years.

The foreign clients have traditionally been the mainstay of Swiss banks' wealth management business. But growing pressure from foreign governments for action against possible hoarding of illicit wealth in Switzerland has been acting as a dampener in the recent years.

As per the latest data compiled by Swiss Bankers Association (SBA), the apex body of banks in the country, the total asset under management in Switzerland stood at 5,300 Swiss francs at the end of 2011.

This included 2,700 billion Swiss francs (51%) of foreign clients and the remainder 2,600 billion Swiss francs (49%) of domestic clients.

The foreign clients' share has declined for three straight years in a row -- from 52% in 2010, 55% in 2009 and 56% at the end of 2008.

The total assets of foreign clients stood at about 3,000 billion Swiss francs at the end of 2008.

These assets include value of securities held in client portfolios, fiduciary deposits, amounts due to clients in savings and investment accounts, as also from time deposits.

The decline in foreign client assets has come at a time when Swiss banks are recording an increased number of complaints from their overseas customers.

Switzerland's banking ombudsman said last week that the number of complaints from foreign customers rose in 2011, even as their overall customer grievances fell. It did not give any specific figures of complaints from Indian clients.

While Indians are alleged to have stashed large amount of worth black money in Swiss banks, the official data of Switzerland's central bank, Swiss National Bank (SNB) puts the funds of Indian clients in Switzerland's banks at a modest 2.18 billion Swiss francs (Rs12,700 crore) -- which is just 0.14% of total foreign wealth there.

Indians' money in Swiss banks rose for the first time in five years in 2011.

These official figures, described by SNB as 'liabilities' of Swiss banks towards their clients from various countries, do not indicate the quantum of the much-debated alleged black money held by Indians or other nationals in the safe havens of Switzerland.

Also, SNB's figures do not include the money that Indians or other nationals might have in Swiss banks in others' names.

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