Tata Capital to set up subsidiary for infra finance

Kolkata: Tata Capital, a subsidiary of Tata Sons, is considering setting up a 100% subsidiary for providing infrastructure finance, reports PTI quoting a company official.

"We will set up a 100% infrastructure finance subsidiary by March 2011," managing director of Tata Capital Praveen Kadle said today. Presently, infrastructure financing activity was being done out of a division of Tata Capital.

In its first year of operations, Tata Capital had disbursed Rs4,000 crore towards infrastructure financing out of a total of Rs11,000 crore.

Mr Khadle said that the funds required for infrastructure financing would be raised in the right mix of external commercial borrowings and domestic debt.

Out of the Rs11,000 crore disbursed, Rs4,500 crore was towards commercial finance and Rs2,500 crore towards retail finance.

The company had clocked a net profit of Rs51 crore on a gross revenue of Rs1,379 crore. Tata Capital's capital base stood at Rs2,200 crore.

Mr Khadle said that the company would leverage the Tata brand to raise further capital from the market.

"We will be able to raise about Rs3,000 crore further from the market," he said.

 Mr Kadle said that Tata Capital would also enter the foreign exchange business soon.

He said that the company would apply for licenses and that the new venture was likely to take off by the third quarter of the current financial year.

Among the non-fund based activities of the non-banking financial company (NBFC), he said the company engaged in investment banking and wealth management.

Asked if the Tata group was keen to convert Tata Capital into a banking outfit, Mr Kadle said that it was 'too premature to comment on this'.

He said that Tata Capital was almost doing various banking activity except for accepting deposits.

Asked about the disbursement target for the current year, he said the company would add around Rs3,000 crore.

Mr Kadle said the capital adequacy of the company stood at 21.4% and net worth stood at Rs2,120 crore.

The company would also focus on rural finance, but was not entering into micro-finance, he pointed out.


RTAs wait for SEBI clarification on consolidated account statements

RTAs are ironing out the final contours to facilitate physical consolidated account statements to mutual fund investors, which will streamline operations and reduce costs for AMCs

If registrar and transfer agents (RTAs) have their way, mutual fund investors will soon start getting a single account statement for all their investments. However, they will have to wait at least until September 2010 for the final outcome.

Currently, Computer Age Management Services (CAMS), Franklin Templeton and Karvy Mutual Fund Services together provide a consolidated view of investments through their 'Mailback' service.

(See: https://www.karvymfs.com/platformservice/). This service is currently available via the online platform. If all RTAs unify their data, investors will be able to get a consolidated physical copy too. This will be a win-win situation for investors as well as asset management companies (AMCs).

"Karvy and CAMS submitted the proposal together and in the first note requested time till September 2010. We are in the process of consulting other RTAs to join this initiative. We are waiting for the Securities and Exchange Board of India (SEBI) to revert on a few clarifications," said a source familiar with the development.

Moneylife had first reported about this development. Read here: (http://www.moneylife.in/article/81/6638.html).

The four RTAs - CAMS, Karvy, Deutsche Investor Services and Franklin Templeton together manage 43 fund houses. Deutsche Investor Services manages JP Morgan Mutual Fund, Deutsche Mutual Fund and Quantum Mutual Fund. CAMS covers 17 fund houses; and the rest of the 23 fund houses are managed by Karvy Mutual Services. Franklin Templeton Mutual Fund has its own in-house team to service its investors.

SEBI recently expressed its interest to facilitate a single account statement to investors in an email communication to chief executive officers (CEOs) of fund houses.

It is believed that the RTAs are seeking some clarity on the dispatch of accounts during new fund offers (NFOs). SEBI in its 15th March circular had mandated fund houses to dispatch account statements, units and refund investor money within five days from the date of closure of NFOs. 



Narendra Doshi

7 years ago

I think Quantum MF is handled by Karvy & NOT Deutsche

R Balakrishnan

7 years ago

It is time SEBI made it mandatory for all investors to opt only for electronic statements. In an anglicised industry, what is the need for physical statments? In fact, there should be a charge of at least Rs.100/- each time an investor or an agent comes to collect a physical statment. This is the only way anyone will have interest in reaching out to the useless investor called the 'small' investor.


Param Iyer

In Reply to R Balakrishnan 7 years ago

Agreed, provided the AMCs commit to reducing the expense ratio & add these expenses on ad-hoc basis. In fact, that should be the pricing model for all financial businesses...

Narendra Doshi

In Reply to R Balakrishnan 7 years ago

Many AMCs already insist on investors to prefer email a/c statements IN LIEU of physical statements i.e. GO GREEN & paperless. Hope others follow & ALL over a limited period.

Senior citizens mark 16th August as Protest Day

Senior citizens ask for better health insurance schemes from the government, immediate implementation of the National Policy on Older Persons along with the Maintenance and Welfare of Parents and Senior Citizens Act

Thousands of senior citizens sporting black bands around their arms and shouting slogans like "we want our respect" or "shame (on the government)" staged a protest at Azad Maidan, Mumbai and various other parts of the state and the country yesterday. They wanted better health insurance schemes from the government, immediate implementation of the National Policy on Older Persons (NPOP) and the Maintenance and Welfare of Parents and Senior Citizens Act (MWPSCA).

"We are a huge part of the government and we have been neglected by the very same government. No promises have been kept," said RS Desai, member of the All-India Bank Retirees Federation.

"After 64 years of tolerating the government that has closed its eyes to the problems faced by senior citizens and particularly after 11 years of waiting for the NPOP to be implemented, we are gathered here to convey our strong protest," said Dr Sheilu Sreenivasan, founder-president, Dignity Foundation.

This protest was part of an all India 'Senior Citizens National Protest Day', observed in various cities, towns and villages. The core of the protest was to demand health insurance for all senior citizens - with or without any pre-existing disease, immediate implementation of the NPOP, MWPSCA and the Indira Gandhi National Old Age Pension Scheme (IGNOAPS), which would give senior citizens Rs500 as monthly pension. The protest wanted these facilities to be grated to all Below Poverty Line (BPL) senior citizens, and residents of old age homes. Protestors also called for the setting up of an exclusive ministry and a national commission for senior citizens.

"In our country, there are 60 million people who live below or barely above the BPL (mark). They are those who earn Rs56 a day or Rs1,700 per month. And out of these 60 million people, only 10 million receive Rs400 per month under the IGNOAPS plus 10kg of grains per month under the Annapurna Scheme. (But) all of these platitudes remain only on paper and have yet to be implemented," said Dr Sreenivasan.

Panellists at the protest meet said that the NPOP has been neglected by the state and the Central governments and the bureaucratic system has been tardy, leading to its non-implementation. About 28 states and seven Union Territories have yet to adopt the NPOP even after 11 years of its promulgation by the Union government.

"The core problem is that for years they have been passing the buck, from the Central government to the finance minister to the state government. We need some action, we need our respect," said KS Samant, general secretary of the General Insurance Pensioners Association (GIPA).

In the case of MWPSCA, even after its enactment three years ago, the scheme has not yet been implemented. According to Amruta Lovekar, senior project manager of Shree Ramanugrah Trust, there is still a need for policies which give senior citizens care and protection and better mental health treatment. Families that look after their parents must get tax exemption, she demanded. 

Mr Desai added that even former bank and insurance company employees have been neglected by the government and were fighting to get privileges.

Subhash Desai, a Shiv Sena MLA, assured senior citizens that he would bring up the matter before Parliament. According to Sailesh Mishra, founder-president of Silver Innings, the protest had gathered huge amount of support among elected representatives. After the event, Mr Mishra told Moneylife that ministers in Madhya Pradesh have given some assurance to the committee that they would look into the various issues involving senior citizens.

A memorandum with various demands from senior citizens was submitted to the government of Maharashtra. State minister of social justice, Sachin Ahir, received the memorandum on behalf of the Maharashtra government.

Late yesterday Mr Mishra sent Moneylife an SMS saying "Victory. Met Sachin Ahir, state minister for social justice. He in principle agreed to most demands. Asked to meet again in a week." Mr Ahir was visited by Mr Mishra, Mr Samant, Dr SP Kinjawadekar (president of the All India Senior Citizens' Confederation) and Vijay Aundhe, (general secretary of the Federation of Senior Citizens Organisations, Maharashtra).

The protest was supported by 27 national, state and local level organisations, NGOs, associations of banks/insurance companies and retired employees.



Alok Malhotra

6 years ago

Good to sack her from the profession.

Chandrakanth Polliwar

6 years ago

Amruta Lovekar is mentally ill. She needs medical treatment.


Amruta Lovekar

7 years ago

On the behalf of Shree Ramanugrah Trust and Anand P. Nair, chief patron of this trust, I, Amruta Lovekar sincerely seek apology from the elderly people.

Mohan Kulkarni

7 years ago

Amruta Lovekar should seek public apology.

Ambika Vipul Sachdev

7 years ago

Manoj Desai is right. Amruta Lovekar's statement will cause huge disappointment among the elderly.

Manoj Desai

7 years ago

It is "stupid" on part of Amruta Lovekar to say that "better mental health treatment" is needed for elderly person. Is that means that all elderly persons are "mentally ill"? Such statements will demoralize the elderly. It is very bad comment on part of Amruta Lovekar.


7 years ago

Historical protest day , first time ever in the history of sr citizens movement made possible by NGOs and support by media.Follow up needed with Govt , on action plan ,time bound ,with social audit and review.

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