Key News

SBI craving for prospective partners in general insurance
The State Bank of India (SBI) is craving for prospective partners for its general insurance foray to pay Rs 3 billion to Rs 3.5 billion as entry premium.

If a foreign partner pays more premium in the lucrative life insurance business of Rs 2.2 billion, then the premium is considered to be extremely high.

Moreover, entry premiums have been high due to the distribution strength of Indian partners. For every Rs 10 a share, the foreign promoter has paid a (entry) premium of Rs 22.

It is learnt that SBI seeks to claim more premium, as it has the capability to provide the kind of reach it can offer that no other entity can offer.

The growing pace of insurance sector has increased the expectations of getting higher entry premium. This is the result of rising valuations of insurance businesses. The total annual premium of general insurance companies has doubled to Rs 250 billion in 2006-07, from Rs 100 billion in 2000-01.

Credit offtake in 2008 to be slower than 2007: IDBI
CMD, IDBI, in an interview, said that credit offtake in 2008 will be slower than in 2007. He added that CASA is currently at 27% and CAR is at 14.01%. According to him, IDBI will continue to hold investments and not sell any.
REL gets board nod for FCCB issue
Reliance Energy Ltd has said that pursuant to conversion of the earlier series of outstanding FCCBs.
The board of Reliance Energy Ltd passed an enabling resolution approving in principle the issuance of Foreign Currency Convertible Bonds (FCCBs) in the international market, for an amount not exceeding Rs 5,000 crore, in such tranches and at such times, as may be decided by the board from time to time, subject to relevant guidelines and approvals.