Reserve Bank cancels the licence of Krishna Valley Co-operative Bank

Krishna Valley Co-operative Bank, Kupwad, Sangli (Maharashtra), is prohibited from carrying on ‘banking business’ as defined in Section 5(b) of the Act: RBI

The Reserve Bank of India cancelled the licence to the Krishna Valley Co-operative Bank, Kupwad, Sangli, Maharashtra, with effect from the close of business on 5 March 2012, because it had ceased to be solvent. All efforts to revive it, in close consultation with the Government of Maharashtra, had failed and the depositors were being inconvenienced by continued uncertainty.

The Board of Directors was ineffective and responsible for deterioration in the financial position of the bank and for conducting the affairs of the bank in a manner detrimental to the interest of the depositors. The Board of the bank was superseded on 26 December 2003 by RCS and the administrator was appointed to manage the affairs of the bank.

The Registrar of Co-operative Societies (RCS), Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank. On liquidation, every depositor is entitled to repayment of his/ her deposits up to a monetary ceiling of Rs 1 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under usual terms and conditions.

As per the findings of the inspection of the bank under Section 35 of the Act with reference to the bank’s position as on 31 March 2011, assessed net worth of the bank stood negative at Rs407.71 lakh, assessed CRAR (capital to risk weighted assets ratio) was (-)532.2% and gross NPAs amounted to Rs319.06 lakh (100%) of gross advances. Erosion in deposits stood at 72.8% of total deposits of Rs559.90 lakh. The bank was also not holding the required CRR (cash reserve ratio), thus violating the provisions of Sections 18 of the Act.

Consequent to the cancellation of its licence, Krishna Valley Co-operative Bank Ltd., Kupwad, Sangli (Maharashtra) is prohibited from carrying on ‘banking business’ as defined in Section 5(b) of the Act.

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Biocon, Pfizer cancel $350 million insulin products deal

“The companies have agreed that due to the individual priorities for their respective biosimilars businesses, it is in their best interest to move forward independently,” the two said in a joint statement

New Delhi: Domestic pharma major Biocon and US drug major Pfizer on Tuesday called off the $350 million global alliance to commercialise the Bangalore-based firm’s biosimilar versions of insulin and insulin analog products, reports PTI.

“The companies have agreed that due to the individual priorities for their respective biosimilars businesses, it is in their best interest to move forward independently,” the two said in a joint statement.

In October 2010, they entered into a strategic global agreement for the worldwide commercialisation of Biocon’s biosimilar versions of insulin and insulin analog products: recombinant human insulin, glargine, aspart and lispro.

“As of 12 March 2012, all rights licensed to Pfizer will revert to Biocon, and all insulin distributed under the brand name UniviaTM and GlarviaTM will be commercially available from Biocon only, and will be exclusively manufactured, supplied, marketed and supported by Biocon,” the statement said.

Under the agreement, Pfizer was to make upfront payments of $200 million and Biocon was also eligible to receive additional development and regulatory milestone payments of up to $150 million. Besides, Biocon was eligible to receive additional payments linked to Pfizer’s sales of its four insulin biosimilar products across global markets.

Both the companies said they are committed to ensuring continuity of patient care and will work together to effect a seamless transition.

“Biocon remains committed to delivering its biosimilar insulins portfolio to global markets in its endeavour to make a difference to diabetic patients across emerging and developed economies,” Biocon CMD Kiran Mazumdar Shaw said.

“Biocon will continue to work with its existing partners in several markets and will pursue a commercial strategy on its own and through new alliances in other markets,” she said.

Pfizer said it continues to be dedicated to developing a broad portfolio of biosimilars medicines, including monoclonal antibodies and recombinant proteins products, both internally and through collaborations.

“In addition, we will continue to be active in our own research and business development efforts for diabetes, which represents a huge unmet medical need, and we remain committed to seeking new solutions to help physicians and patients,” Pfizer Biosimilars general manager Diem Nguyen said.

Shares of Biocon were trading at Rs253.70 on the BSE, down 5.23% from its previous close at 1300 hours.

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RBI attributes economic slowdown mainly to external factors

The fiscal witnessed "loss of momentum in overall activity", the RBI report said, but added India has done well as compared to several other countries.

The Reserve Bank has attributed decline in the economic growth rate to three-year low of 6.9% in 2011-12 largely to deterioration in the external environment.

"Recent data indicate that after a smart recovery during 2009-10 and 2010-11, real GDP growth slipped sharply to 6.9% during 2011-12 largely on account of the deterioration in the external environment and the slowdown in domestic investment," Reserve Bank of India ( RBI) said in its monthly bulletin released. The external factors that influenced the performance of the economies of the world include euro zone sovereign debt crisis and rising prices of commodities, it said.

According to the Central Statistical Organisation (CSO), India's growth rate is estimated to slip to 6.9% in 2011-12 from 8.4% in the preceding two years.  The fiscal also witnessed "loss of momentum in overall activity", the report said, but added India has done well as compared to several other countries.

"Notwithstanding the recent slowdown, the rate of growth of the Indian economy remained quite impressive in a cross-country context," the report added.

The Indian economy, it said, has "generally outperformed the other economies, with the notable exception of China, right through 2007 to 2010 and is expected to continue to do so in 2011 and 2012."

Savings and investment rates dipped during 2010-11 mainly reflecting a decline in household financial savings and private corporate sector investment, it said.

"During the four years since global financial crisis...the growth rate of real GDP averaged 7.6% which was lower by nearly two percentage points than during 2005-06 to 2007-08," the study said.

The estimated growth rate in 2011-12 is only slightly higher than 2008-09 when the Indian economy was adversely and indirectly affected by global financial crisis, it said.

The deceleration in real GDP during 2011-12, it said, was evident across the major sectors, "largely in agriculture on account of base effect followed by industry and to some extent in services".

Within industry, mining and quarrying sector contracted while manufacturing sector growth rate, which accounts for around 80% of industrial sector, nearly halved, the report said.

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