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Monday, November 24, 2014

IRDA in favour of increasing agent remuneration

The Insurance Regulatory and Development Authority (IRDA) is in favour of giving insurers a free hand in paying out agency commission to make it more remunerative for individual agents.

Speaking at an insurance summit organised by FICCI, IRDA Chairman T S Vijayan said insurance companies should protect agents by fixing minimum wages for them and creating employment opportunities in the industry. He said there should be some minimum protection for agents and they should be in a position to earn at least Rs. 10,000 a month from selling insurance.

"I hope that freedom is given to companies in the insurance bill. We can fix a cap on expenses and the insurers can decide on the best way to remunerate the agents. We feel that there should be a cap on the overall charges that a policyholder is subject to and if a company wants to pay a higher commission from its shareholders' account, it should be free to do so," said Vijayan.

On the benefit of raising foreign direct investment to 49 per cent, Vijayan said allowing 26 per cent FDI was a great success as it has helped the insurance industry increase insurance penetration. He also said the current legal and regulatory framework was adequate to ensure that the management of insurance companies was in Indian hands.

Vijayan also called for a ‘Jan Bima Yojana’ by the Government, on the lines of the ‘Jan Dhan Yojana' to increase insurance awareness.

Source : Thehindubusinessline
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Corporation Bank targets Rs. 6,000 cr from retail lending this fiscal

Corporation Bank (Chennai Circle) is targeting to achieve Rs. 6,000 crore from retail lending this fiscal.

The circle has achieved Rs. 4,700 crore till mid-November and is hopeful of reaching Rs. 5,200 crore by end-December, the bank's General Manager (Chennai Circle), U Vasanth Kini, told BusinessLine.

Coimbatore zone (comprising nine districts) in Chennai circle is said to top in retail lending.

Kini was in the city at the sixth edition of the bank's home loan expo now underway at Suguna Kalyana Mandapam.

Speaking on the sidelines of this expo, he said: “The focus is now on the high-end premium segment, existing borrowers, professionals and two-income families, where the risk element is minimal. The recovery from retail lending has also been quite satisfactory.”

Home loans

At this two-day event (which comes to an end this evening), the bank is offering home loans at 10.25 per cent for loans up to Rs. 2 crore and at 10.5 per cent for loans above Rs. 2 crore, notwithstanding the waiver on processing charges.

Car loans can be availed at 10.65 per cent for financial assistance of Rs. 50 lakh with 50 per cent waiver on processing fee.

Builders and project promoters have also come up with offers like cash discount of up to Rs. 10 lakh, gold coin, modular kitchen and home automation on spot booking.

Over 40 builders have put up stalls at this expo.

Source : Thehindubusinessline
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Stay away from imposter NBFCs: RBI

The Reserve Bank of India sounded out a warning bell to the people to remain on guard against certain entities fraudulently posing as Non-Banking Finance Companies (NBFCs).

Such entities, the RBI said, were posing as having got a certificate of registration from the regulator to do business. They were reportedly approaching the people with loan offers and would collect a sizeable amount as processing fees and then flee with the money so collected.

Such entities include companies, partnership firms, individuals, the RBI said, adding, “It is understood that entities/imposters are promising loans to the needy public at attractive rates and collecting money from them as processing charges for the loans/advances and vanish with the money so collected,” the RBI said.

The central bank advised people to refrain from making any payments or financial commitments to any individuals/entities without verifying the veracity of the transaction, the credentials and genuineness of licence or Certificate of Registration issued by the appropriate regulatory authority to function as a financial institution.

Source : Thehindubusinessline
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LIC waiting for disinvestment plan; ready to invest more in equities

Life Insurance Corporation, the country's largest life insurer is expecting to meet 20 per cent of its annual budgeted new business premium collection of Rs. 35,000 crore in the third quarter of the current fiscal, said a top company official.

SK Roy, Chairman of LIC, said on the sidelines of the FICCI insurance summit that while the new business premium collection for the state-owned insurer has seen a very good growth in November, the company may not be able to surpass its previous year's record premium collection in the third quarter.

Roy said that at present the insurer has already invested Rs. 45,000 crore in equity markets in the current fiscal and is ready to buy more if the government comes out with its divestment programme.

Source : Thehindubusinessline
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Andhra Bank Coimbatore zone targets Rs. 5,000 cr business this fiscal

Coimbatore zone of Andhra Bank is targeting a business level of Rs. 5,000 crore this fiscal.

As at end September, this zone achieved a business of Rs. 3,677 crore with deposits at Rs. 823 crore and advances at Rs. 2,854 crore.

This zone was formed out of the Chennai zone in May this year.

It now encompasses 23 districts, with 42 branches and 33 ATMs.

Briefing presspersons on the occasion of the bank's completion of 91 years, the zone's Assistant General Manager J Vamanaraman said 30 new branches have been planned for the zone before the close of the current fiscal to take the branch network to 72. Of these, 8 would be opened by end-December.

“The number of corporate advances is comparatively high here. It stands at Rs. 1,750 crore. Our focus would now be on MSMEs as we see huge potential in this space. Incidentally, Coimbatore branch tops in export finance,” he said.

To a query on NPAs, he said “Rs 331 crore out of the total advances of Rs. 2,854 crore have been classified as NPA. About 10 accounts have been restructured.

Source : Thehindubusinessline
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