“Over Rs750 crore lying in inactive post office saving accounts”

“Rs752,44,57,414.03 is the amount lying in all inactive (silent) accounts as on 31 March 2011 in 2,49,59,446 accounts,” telecom minister Kapil Sibal said in a written reply to Lok Sabha

New Delhi: The government today said around Rs752 crore is lying as unclaimed deposits in more than 2.49 crore inactive savings accounts in post offices, reports PTI.


“Rs752,44,57,414.03 is the amount lying in all inactive (silent) accounts as on 31 March 2011 in 2,49,59,446 accounts,” telecom minister Kapil Sibal said in a written reply to Lok Sabha.


West Bengal led the tally of unclaimed deposits with over Rs107 crore lying in 20.16 lakh accounts, followed by Tamil Nadu (Rs105.87 crore in 62.72 lakh accounts) and Uttar Pradesh (Rs68.61 crore in 21.74 lakh accounts).


“The depositor of such account can activate the account at any time by transaction. Notices are issued every year to the account holder of such accounts who are not maintaining minimum balance. Special drives are launched to re-activate such accounts by issuing notices and giving information through electronic media,” Mr Sibal said.


Responding to another query, Mr Sibal said 79,604 complaints for non-delivery of registered letters, 41,794 for Speed Post and 8,257 related to parcels were received in the April-June, 2012 period.


“Of these, 73,077 complaints for registered post, 38,154 for Speed Post and 6,147 for parcels were addressed. As on 30 June 2012, 6,527 complaint cases of registered letters, 3,640 cases of Speed Post and 2,110 cases of parcels are pending,” he said.


The major reason for the pendency are involvement of more than one postal circle/ state in processing the complaints, time taken in making detailed inquiry or investigation and non-submission of the required details by the complainant in some cases, he added.


The minister added that during 2009-10, 2010-11 and 2011-12, departmental action has been initiated in 1,287 cases against postal employees and penalties have been imposed in 1,157 cases for non-delivery and loss of articles, etc.


In a separate reply, minister of state for communications and IT Sachin Pilot said the Department of Posts’ (DoP) volume as well as revenue from speed post has continuously increased over the years.


“The volume of Speed Post has increased from 21.14 crore in 2008-09 to 24.08 crore in 2009-10, 27.45 crore in 2010-11 to 39.19 crore in 2011-12,” Mr Pilot said.


Revenues from speed posts have also grown from Rs515 crore in 2008-09 to Rs614 crore in 2009-10, Rs749 crore in 2010-11 and Rs900 crore in 2011-12, he added.


Reliance Life in talks with banks for up to 5% stake sale

“We are looking for a bank partner of significant size and are in touch with a couple of banks for alliance,” Reliance Life president and executive director Malay Ghosh said

New Delhi: Leading private insurer Reliance Life has begun talks with a few banks for sale of minority stake of up to 5% and to enter into product distribution alliance, reports PTI.


The bank would serve as a bancassurance partner and help expand the product distribution network of Reliance Life Insurance, which is part of Anil Ambani-led Reliance Group’s financial services arm Reliance Capital.


“We are looking for a bank partner of significant size and are in touch with a couple of banks for alliance. We are also open to discussions on giving a very small equity to a bank of critical size as distributor stock option,” Reliance Life president and executive director Malay Ghosh told PTI.


He, however, did not identify the banks with which Reliance Life is in discussions for a potential deal.


The equity stake offered to such a partner would be capped at 5%.


Mr Ghosh said that Reliance Life would not offer any upfront payment for the bancassurance alliance.


“If a firm in five years can create value for us, we are open to give small equity, say up to 5%, to it at today's valuation with a guarantee to buy them back at future valuation. This is what we are pursuing while talking to banks for a bancassurance tie-up,” he said.


In insurance parlance, the term ‘bancassurance’ is used for distribution of insurance products through the bank branches and currently this model of insurance distribution accounts for 25%-30% of premium income for the private insurers in the country.


“No doubt, we have a distribution gap and it can be served by one bank of a significant size and reach. If we do not get the bank of that critical size, we can go for more than one bank,” Mr Ghosh said.


Last year, Reliance Life Insurance sold 26% stake to Japan-based Nippon Life Insurance Co for around Rs3,062 crore.


Earlier this month, Reliance Life reported a whopping 140% jump in its first quarter net profit to Rs19 crore in the current financial year.


Its total premium (net of reinsurance) in the last quarter was Rs810 crore, while total funds under management stood at Rs18,586 crore as on 30 June 2012.


The company recorded its first full-year net profit at Rs373 crore in 2011-12. It sold over a million policies last fiscal and garnered a total premium of Rs5,498 crore.


Reliance Life helped Reliance Capital post consolidated net profit of Rs45 crore for the quarter ended 30 June 2012, representing an increase of 30%.


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