Tag Archives: banking

Mumbai banker becomes a billionaire by managing wealth of India’s new rich

Nirmal Jain has hit the jackpot serving the new rich in the world’s fastest-growing major economy.

The Mumbai banker’s $20 billion private-wealth-management unit became India’s biggest by assets and helped make him a billionaire.

The nation’s demographics are a driving force, as well as Prime Minister Narendra Modi’s efforts to withdraw India’s biggest bills from circulation, which has pushed savings into the financial system. India’s young and thriving workforce will support its growth for years to come, Jain, 51, said in a phone interview, pointing out that millennials account for about a third of the country’s population and most of the income. Continue reading

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RBI and IRDAI object to new bankruptcy bill

NEW DELHI: The Reserve Bank of India and the country’s top insurance regulator, Insurance Regulatory and Development Authority, have objected to a draft law on bankruptcy in financial institutions, saying some of its provisions undermine their authority.

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IRDAI approved SBI life’s IPO worth 6000-7000 cr.

MUMBAI/CHENNAI: The Insurance Regulatory and Development Authority of India has approved SBI Life Insurance Co Ltd’s application for an initial public offering (IPO), which is likely to be worth rs.6,000-7,000 crore, the largest public share sale thus far in the life insurance business. An IRDAI official said on condition of anonymity that the insurance regulator approved SBI Life’s IPO a few days back.

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EPFO allows pvt. banks to transact pension fund

NEW DELHI: India’s retirement fund body EPFO allowed private banks to transact Provident Fund payments, a move that is aimed to help millions of salaried people at a time when it has reduced the interest rate from last year. Earlier, India’s largest public sector bank, SBI, was the sole channel for payments for pension. On Wednesday, the EPFO signed pacts with ICICI Bank, HDFC Bank,
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HDFC Life, Max carve out new structure for merger

MUMBAI: HDFC Life Insurance Co Ltd and Max Life Insurance Co Ltd have carved out a new structure for their proposed merger after the Insurance Regulatory and Development Authority of India rejected the original threestep union, said two people with knowledge of the discussions.

The two companies have decided to extend the deadline for completing the merger, they said, declining to be identified citing the sensitivity of the discussions. Meanwhile, HDFC Life has also informally asked its bankers to start preparing for an initial public offering.

The deadline for the original merger plan expires on June 30. HDFC Life and Max spokespersons did not respond to emails seeking comment.

The first step of the original plan involved the merger of Max Life with Max Financial Services. However, Section 35 of the Insurance Act prohibits the merger of an insurance company with a non-insurance company. The new structure is much simpler, the people cited above said.

“The new structure is something that satisfies Section 35 of the insurance norms, is in compliance with Sebi rules and in accordance with existing taxation norms. We can’t share anything more at this stage. Once a decision on the merger (under the new structure) is taken, we will inform the exchanges and will be in a better position to explain the new route planned for the merger,” said the first of the two people cited earlier.

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RBS to cut over 400 jobs, move many of them to India

LONDON: British lender Royal Bank of Scotland (RBS) on Sunday said it was cutting 443 UK jobs dealing with business loans, and plans to shift many of the roles to India. The UK’s largest government-owned bank said it was moving the jobs, which help handle loans for small businesses, as part of an ongoing cost-cutting drive. “As we become a simpler, smaller bank, we are making some changes to the way we serve our customers. Unfortunately, these changes will result in the net reduction of 443 roles in the UK,” a spokesperson for the bank said. The UK government, which granted a 45-billion-pound bailout to RBS in 2008, holds 73% in the bank. Last month also, the bank had announced its decision to cut jobs.

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Source: Hindustan Times

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Maharashtra finalises waiver of farmers’ loans of up to ₹1.5 lakh

MUMBAI: The Maharashtra government on Saturday announced it would spend ₹34,022 crore to write off farm loans, a decision that would help 89 lakh farmers in debt across the state.

The loan waiver, which chief minister Devendra Fadnavis said was the “highest by any state in India’s history”, will cover 65% of all farmers in Maharashtra. Of this, loans of 40 lakh farmers will be completely written off.

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Aadhaar­less bank a/cs to be invalid by year end


NEWDELHI: Bank accounts that are not linked to Aadhaar will be frozen and no new accounts can be opened without the 12-digit biometric identity number after December 31, according to new government rules.

Aadhaar cards along with Permanent Account Numbers (PAN) or Form 60 for those outside the tax net will also be mandatory from now on for transactions above ~50,000. Those who don’t have the documents will have to prove they have applied for them.

The latest regulations, issued by the revenue department on June 1, come as amendments to rules related to the anti-money laundering law that the government is seeking to tighten to fight black money and terror funding.

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Centre will not fund farm loan waivers, says Jaitley


NEWDELHI: Union finance minister Arun Jaitley hinted on Monday that the central government will not help with money for farm loan waivers, underscoring a major economic challenge for Maharashtra, which promised to write off loans equal to nearly 80% of its fiscal deficit, and for at least four other states facing similar demands.

Maharashtra, Madhya Pradesh, Haryana, Rajasthan and Punjab have witnessed growing resentment in the agriculture sector where stagnant incomes have left millions with piling debt. The crisis has triggered violent protests recently, with a debt write-off a central demand in all the regions.

Protests in Madhya Pradesh left five people dead last week and cultivators in Maharashtra held a more than a week-long agitation that ended on Sunday only after the government agreed to waive off loans for 1.34 crore farmers.

There have also been rumblings in Haryana, Rajasthan and Punjab, weeks after Uttar Pradesh’s new government wrote off ₹35,500 crore in loans to small farmers.

“States which want to go for these kind of schemes, will have to generate them from their own resources. Beyond that as the central government, I have nothing to say,” Jaitley said.

An HT analysis shows that if the governments agree to waive off loans, most states will almost double their fiscal deficit and be left with practically no money for welfare projects (see box).

“The waiver will translate into a cut in development spending by 30%”, said a Maharashtra finance department official.

Officials in UP say the loan waiver has led to pruning of allocations of all departments as the Centre was not willing to share the burden.

In almost all major agrarian states, the loans of small farmers are close to 80% of the fiscal deficit last year.

The last big farm debt waiver came in 2009, when the UPA government waived ₹72,000 crore before the general election.

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