IRDAI delists 10 medical treatments for health cover from optional list

The insurance regulator, in a circular on Monday, delisted 10 specific medical treatments from its list of optional covers, that can be offered by health insurance companies.

Through its guidelines on the standardisation of health insurance, the Insurance and Regulatory Authority of India (IRDAI) lists various medical procedures, medical equipment like alcohol swabs and administrative charges amongst others, that can be offered as part of a health insurance policy.

Health insurance companies have the option to offer customers a cover for the items or procedures listed in chapter 3 of the guidelines. These are part of the ‘non-payable’ aspects of a standard health insurance policy.

Health insurance policies mainly cover hospitalisation charges, while the costs of other treatments and ancillary equipment have to be borne by the customer or policyholder themselves.

ICICI Bank drags Punj Lloyd to NCLT, State Bank of India objects

ICICI Bank has filed a case against Punj Lloyd, the international engineering procurement and construction company, in the National Company Law Tribunal (NCLT), New Delhi, for insolvency and bankruptcy proceedings. The division bench headed by Justice M M Kumar has issued a notice to Punj Lloyd, saying the lender has moved the tribunal under the Insolvency and Bankruptcy Code (IBC). ICICI Bank has filed the case against Punj Lloyd to recover dues of Rs 8.52 billion. However, the petition seeking initiation of insolvency proceeding against the corporate debtor was opposed by State Bank of India (SBI).

From hope to happiness: Analysts find SBI's FY2020 plan credible

State Bank of India (SBI) seems to be taking the Rs 77.18-billion loss in the March 2018 quarter in its stride with the bank’s chairman Rajnish Kumar expecting better days ahead.

“The year gone by was one of despair, the current year is one of hope and 2019-20 will be the year of happiness,” Kumar said.

He expects gains from higher credit growth, robust financial profile and control on costs.

Despite SBI’s poor numbers, the stock market has taken an optimistic view on the outlook as is evident from the stock gaining 7.4 per cent in two trading sessions.

Analysts say FY2020 targets as set by the country’s largest lender are credible and very much within reach. The clean-up of balance sheet involving recognition and provisioning for bad loans is almost through. While retail credit, which was 57 per cent of total loans in FY18, is growing at a healthy pace. Its leadership position in corporate lending, for which demand is picking up, will also stand in good stead.

News digest: PNB fraud, war against fakes, right to die, and more

Trump slaps tariffs, rattles Indian metal firms; JSW asks govt to retaliate


Indian metal producers with exposure to Europe and the United States warned of increased costs and lower sales with US President Donald Trump signing on Thursday a proclamation levying a 25 per cent duty on steel imports and 10 per cent on aluminium imports.


As soon as Trump signed the proclamation, Tata Steel Europe asked the Dutch government and the European Union to persuade the US not to levy the duty on steel imports. Read more here...


PNB fraud fallout: Loan disbursements to corporate India take a hit
Loan disbursals to India Inc are taking a hit at this crucial time of fiscal year end, as banks, especially public sector lenders, have turned defensive in the aftermath of the Punjab National Bank (PNB) fraud. The assessment of the impact of the new framework for restructuring of stressed assets is also taking bankers’ time.

Another bank fraud? Borrowers misuse SBI loan of Rs 32 mn to produce a film

In yet another fraud on a public sector bank, as many as 13 people including a kabaddi player got a loan of Rs 32.9 million for buying top-end cars, but 'misused' the money for producing a Tamil film.
When the fraud came to light, the Madras High Court, on a plea from the State Bank of India (SBI), granted an interim injunction against the movie's release.

The fraud was done with the connivance of an auto loan counsellor who allegedly hacked the bank's computers to facilitate the loan sanction and its disbursement.

Justice C V Karthikeyan passed the interim order on a civil suit of the lender restraining White Screen Productions (WSP) from releasing the movie till March 16, 2018.

Note ban impact: Banking correspondents feel the heat of banks cutting cost

About two years ago, when Amita Ghosh was still in a full-time clerical job with a private sector firm on the outskirts of Kolkata, many of her acquaintances had already seen a brisk rise in income as banking correspondents (BCs) in a short span of time. Their income suddenly rose three-fold, from an average of Rs 5,000 to around Rs 15,000 per month.
In August 2014, when the Pradhan Mantri Jan Dhan Yojana was launched, close to 100,000 banking correspondents were roped in, for banks scrambled to meet targets set by the government. Most of them being either higher secondary or secondary school pass-outs, otherwise engaged in low-earning or informal sector jobs. Not only the BCs were entitled to fixed income of Rs 5,000 per month, but also commission payable on transactions, and new account-opening meant a good variable component. Allured by the offer of a better earning, Saha quit her job, which paid her around Rs 4,000 per month, to be a BC. For close to two years Saha’s average monthly income rose to Rs 13,000 per month, peaking around the time of demonetisation, when she earned about Rs 18,000 per month.
Cut to January 2018, Saha’s income has plummeted to Rs 6,000-6,500 per month as BCs bear the brunt of cost-cutting measures of public sector banks. Notably, few months back, when the government proposed the possibility of reduction of perks for regular employees of public sector banks, a strong opposition by bank employees ensured that such a measure was never implemented.
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News digest: GST Council meet, IIP growth slows to 3.8%, and more

Big GST reset: Only 50 items stay in 28% slab, eating out to get cheaper

Consumers will be paying less for a wide range of items from shampoo to furniture from November 15 as the GST (goods and services tax) Council on Friday decided to cut the indirect tax from 28 per cent to 18 per cent on these and further down to 12 per cent on another two (wet grinders, and tanks and armoured vehicles), leaving only 50 items in the peak rate category. Read more

Axis Bank to raise Rs 11,600 cr from Bain Capital, LIC

Mumbai-based lender Axis Bank is set to raise Rs 11,626 crore ($1.8 billion) to further strengthen its capital base by selling shares and warrants to a group of investors, including Bain Capital and top Indian insurer Life Insurance Corp (LIC). Read more

September IIP shows a slowing at 3.8% growth

The country’s Index of Industrial Production rose 3.8 per cent in September, compared with the revised 4.5 per cent in August (a nine-month high) and 5.7 per cent in September last year. Read more

Most names on RBI's second list to land in NCLT: SBI chief Rajnish Kumar

Most companies in the Reserve Bank of India’s (RBI’s) second list of stressed accounts will land up in the National Company Law Tribunal (NCLT) for resolution, according to State Bank of India (SBI) Chairman Rajnish Kumar. Read more

'M' goes off the menu at McDonald's

The golden arches, the most striking symbol of the McDonald’s brand, have gone missing from its products in a few markets. For about a week now, most of the fast-food chain’s restaurants in the National Capital Region have been selling burgers, beverages, wraps, and nuggets without the signature ‘M’ on their wrappers.
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Indian Bank brings 2-tier interest rate for savings A/Cs

PSU lender Indian Bank on Friday said it will offer an interest rate of 4 per cent per annum on savings account with an incremental balance of over Rs 50 lakh and 3.50 per cent per annum for deposits up to Rs 50 lakh.

The lender in a statement said it "has introduced two tier interest rate structure for saving bank accounts and will offer 4 per cent interest per annum for incremental balance over Rs 50 lakh and 3.50 per cent per annum for balance up to Rs 50 lakh."

The new interest rate will be effective from August 16, 2017, the bank said in a BSE filing.

Recently, the country's largest lender State Bank of India had slashed interest rate on savings account deposits by 50 basis points to 3.5 per on balance of Rs 1 crore and below.

However, SBI continues to offer 4 per cent interest on savings account balance of Rs 1 crore and above.

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KKR & Co raises $9.3 billion for third Asia fund

Global private equity firm KKR & Co has raised $9.3 billion, the biggest ever mobilisation with investment focus in Asia. In the first ever fund in 2007, the company had raised $4 billion, followed by $6 billion in 2013. Both these funds were deployed across Japan, China and India, besides other countries in South Asia and Pacific region.

The company plans to invest in emerging opportunities with rising consumption on the back of urbanisation.  Sanjay Nayar, member and chief executive of KKR India, said, "This is an exciting time for investment given India’s macroeconomic environment and constructive government initiatives, besides rising consumption and urbanisation."

KKR had set up its office in India in 2009. Since then, it has deployed $4 billion in private equity investments and a similar amount across its credit businesses.  In March this year, the global private equity giant, along with Canada Pension Plan Investment Board, invested $952 million in telecom company Bharti Infratel. KKR is eyeing such large deals in India.

“The closing of our Asian Fund III furthers KKR’s commitment to India and gives us an even greater opportunity to assist market-leading businesses in their growth,” said Nayar.

The company’s other recent investments include $265 million in SBI Life, along with Temasek, about $210 million in Avantha Holdings and $155 million in TVS Logistics Service, with CDPQ.

KKR’s success has been unique in India, primarily its investments in the manufacturing companies.

In March last year, it sold its controlling stake in off-highway tyre maker Alliance Tire Group to Japan’s Yokohama Rubber for $1.05 billion. This gave it a return of 2.8 times for an investment made in April 2013.

In August, when Shanghai Fosun Pharmaceutical bought 86 per cent in Hyderabad-based Gland Pharma for $1.26 billion, it gave KKR 2.67 times return on a $231-million investment made 30 months ago.

These deals have helped KKR make returns over $3 billion from India.

These returns have helped KKR generate an internal rate of return of 20.6 per cent for its second Asia fund as of March 31, and helped it to raise the largest fund dedicated to the region.
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SBI, associate banks gain after Cabinet okays merger

Latest News - Shares of SBI and its associates ended the day with as much as five per cent gains today after the Cabinet approved their merger, a step aimed at strengthening the sector through consolidation of public banks.

The scrip of State Bank of Mysore jumped 4.66 per cent, State Bank of Travancore gained 4.21 per cent, State Bank of Bikaner rose by 3.48 per cent and SBI was up 0.65 per cent on BSE.

During the day, these stock went up by up to 13.5 per cent.

Seeking to create a global-sized bank, the Cabinet on Wednesday gave the go-ahead to the merger plan of SBI and its five associates.

However, no decision was (Read More)

Banks rush to buy cyber security cover as digital payments rise

Good news! RBI may lift cash withdrawal limit by Feb-end

Latest News - With the cash crunch situation easing, the Reserve Bank might do away with the weekly withdrawal limits from banks as well as ATMs by the end of next month, bankers said.

The RBI had recently raised the ATM withdrawal limit to Rs 10,000 a day but maintained the weekly cap at Rs 24,000 for saving account and Rs 1 lakh for current account holders.

"I think the restrictions on withdrawal by RBI should be completely lifted by February-end or by first half of March as cash situation is easing gradually," Bank of Maharashtra executive director R K Gupta told PTI.

It is entirely RBI's decision and the (Read More)