Tuesday, December 31, 2013
Thursday, December 26, 2013
Banks try to attract home buyers with low interest rates
Part of a focus on retail advances, as corporate demand remains subdued; could reverse if RBI raises repo next month
Barely days after the Reserve Bank of India (RBI) surprised the Street by keeping the repo rate unchanged, banks and mortgage lenders have started lowering the interest rates on home loans. State Bank of India (SBI), ICICI Bank and Housing Development Finance Corporation (HDFC) have reduced their housing loan rates to persuade home buyers to borrow. There is relief for banks in the current quarter on cost of funds. In the July-September quarter, they borrowed heavily from the Marginal Standing Facility window at 10.25 per cent, following the central bank’s decision to make money dearer, to curb volatility in the foreign exchange market.
With the currency stabilising, RBI has reduced the MSF rate to 8.75 per cent; liquidity has also become more comfortable, on the back of government spending, and banks’ reliance on the MSF window has fallen sharply. This had a favourable impact on their cost of funds. SBI, the largest commercial bank, has been the most aggressive reducing its housing loan rates, by 15-35 basis points. The state-run lender is now offering home loans up to Rs 75 lakh at 10.15 per cent, one of the lowest for housing finance. Female borrowers will get an additional discount of five bps. The bank’s housing loan portfolio increased almost 20 per cent to Rs 130,034 crore in the 12 months ending September 30.
SBI’s gross advances during this period grew 19.2 per cent during this period. The share of home loans in its total advances has remained at around 13.5 per cent for three years. SBI Chairperson Arundhati Bhattacharya said the rate cut will help accelerate the bank’s home loan growth in the near term. “However, we cannot expect a very sharp rise in the growth rate,” she said, as most of the bank’s housing finance customers belong to the mid-market segment and the average size of the loans are not so large.
Source: BS
Barely days after the Reserve Bank of India (RBI) surprised the Street by keeping the repo rate unchanged, banks and mortgage lenders have started lowering the interest rates on home loans. State Bank of India (SBI), ICICI Bank and Housing Development Finance Corporation (HDFC) have reduced their housing loan rates to persuade home buyers to borrow. There is relief for banks in the current quarter on cost of funds. In the July-September quarter, they borrowed heavily from the Marginal Standing Facility window at 10.25 per cent, following the central bank’s decision to make money dearer, to curb volatility in the foreign exchange market.
With the currency stabilising, RBI has reduced the MSF rate to 8.75 per cent; liquidity has also become more comfortable, on the back of government spending, and banks’ reliance on the MSF window has fallen sharply. This had a favourable impact on their cost of funds. SBI, the largest commercial bank, has been the most aggressive reducing its housing loan rates, by 15-35 basis points. The state-run lender is now offering home loans up to Rs 75 lakh at 10.15 per cent, one of the lowest for housing finance. Female borrowers will get an additional discount of five bps. The bank’s housing loan portfolio increased almost 20 per cent to Rs 130,034 crore in the 12 months ending September 30.
SBI’s gross advances during this period grew 19.2 per cent during this period. The share of home loans in its total advances has remained at around 13.5 per cent for three years. SBI Chairperson Arundhati Bhattacharya said the rate cut will help accelerate the bank’s home loan growth in the near term. “However, we cannot expect a very sharp rise in the growth rate,” she said, as most of the bank’s housing finance customers belong to the mid-market segment and the average size of the loans are not so large.
Source: BS
E-insurance to come into existence from next year
According to an estimates, the current cost to insurer to service policies is over Rs 600 per annum per policy.
Insurance policy document will become digital and paperless like shares in the new year and the policyholders would be saved from preserving the physical copies of their insurance policies. From April onwards, policy document would come in electronic form for all the new insurance policy sold. Over 25 crore policy holders owning close to 37 crore policies would get their e-insurance in phased manner, CAMS Repository Services Ltd CEO S V Ramanan said. The Insurance Regulatory Development Authority (IRDA) is likely to announce the roadmap to make it mandatory, by which insurance companies would have to compulsorily issue policies to their customers only in electronic form, he said.
According to an estimates, the current cost to insurer to service policies is over Rs 600 per annum per policy. However, with insurance repository, the initial incidental cost would come down to less than Rs 100 per annum per policy, he said, adding, the initiative shall benefit both policy holders and insurance companies from convenience and cost front. "We have initiated multi-level programme for educating policy-holders on e-Insurance across India leveraging our huge network of 390 branches and our domain expertise in insurance," he said. "Insurance policyholders would have the option to access their insurance policies online by opening an insurance account in the electronic form, free of cost.
The benefits for policyholder holding an e-insurance are safety, convenience, service on demand, single KYC and aggregate view of all policies," he said. Insurance repository system allows policy holders to keep insurance policies in electronic form and undertake changes and revision in the policy with speed and accuracy. Recently, IRDA, permitted five companies to act as repositories: NSDL Database Management, CAMS Repository Services, SHCIL Projects, Central Insurance Repository and Karvy Insurance Repository for managing e-policy.
Source: Financial Express
Insurance policy document will become digital and paperless like shares in the new year and the policyholders would be saved from preserving the physical copies of their insurance policies. From April onwards, policy document would come in electronic form for all the new insurance policy sold. Over 25 crore policy holders owning close to 37 crore policies would get their e-insurance in phased manner, CAMS Repository Services Ltd CEO S V Ramanan said. The Insurance Regulatory Development Authority (IRDA) is likely to announce the roadmap to make it mandatory, by which insurance companies would have to compulsorily issue policies to their customers only in electronic form, he said.
According to an estimates, the current cost to insurer to service policies is over Rs 600 per annum per policy. However, with insurance repository, the initial incidental cost would come down to less than Rs 100 per annum per policy, he said, adding, the initiative shall benefit both policy holders and insurance companies from convenience and cost front. "We have initiated multi-level programme for educating policy-holders on e-Insurance across India leveraging our huge network of 390 branches and our domain expertise in insurance," he said. "Insurance policyholders would have the option to access their insurance policies online by opening an insurance account in the electronic form, free of cost.
The benefits for policyholder holding an e-insurance are safety, convenience, service on demand, single KYC and aggregate view of all policies," he said. Insurance repository system allows policy holders to keep insurance policies in electronic form and undertake changes and revision in the policy with speed and accuracy. Recently, IRDA, permitted five companies to act as repositories: NSDL Database Management, CAMS Repository Services, SHCIL Projects, Central Insurance Repository and Karvy Insurance Repository for managing e-policy.
Source: Financial Express
Saving for retirement
A report by
Confederation of Indian Industry (CII) and Ernst & Young (EY) on the
pension market estimates the current retirement funds corpus in India
to be in the range of Rs 12 -15 lakh crore, more than one-third of which
lies in the Employees Provident Fund, the principle source of
retirement planning for workforce in the organised sector. However, they
estimate this corpus to cross Rs 83 trillion by 2025.
Source: BS
EPFO to decide PF interest rate on January 14
EPFO acts tough on firms delaying employees’ Provident Fund claims
Cabinet proposal soon to constitute 7th Pay Commission for revising salaries Retirement fund body Employees’ Provident Fund Organisation (EPFO) will announce the interest rate on provident fund (PF) deposits for the current financial year on January 14 and may offer its over 5 crore subscribers a little more than 8.5 per cent provided in 2012-13.
“The decision on interest rate on PF deposits for this fiscal is pending for long and a decision would be taken by the board in the next meeting,” said Central Provident Fund Commissioner KK Jalan. A decision on the interest rate could not be taken as the Central Board of Trustees has not met after it was reconstituted in May.
Source: Financial Express
Cabinet proposal soon to constitute 7th Pay Commission for revising salaries Retirement fund body Employees’ Provident Fund Organisation (EPFO) will announce the interest rate on provident fund (PF) deposits for the current financial year on January 14 and may offer its over 5 crore subscribers a little more than 8.5 per cent provided in 2012-13.
“The decision on interest rate on PF deposits for this fiscal is pending for long and a decision would be taken by the board in the next meeting,” said Central Provident Fund Commissioner KK Jalan. A decision on the interest rate could not be taken as the Central Board of Trustees has not met after it was reconstituted in May.
Source: Financial Express
Kotak Select Focus Fund announces change in benchmark index
With effect from 30 December 2013
Canara Robeco Mutual Fund announces appointment of Narendra Kumar Jain
With effect from 20 December 2013
Narendra Kumar Jain, 60 years old is M.Com, CAIIB. He was associated with Bank of Baroda as general manager heading important branches in Mumbai, Jaipur, Lucknow & Alwar during his tenure. He has also worked as director on board of Nainital Bank and Ajmer Bhiwara Kshetriya Gramin Bank. He was deputed as advisor to Central Vigilance Commission where he worked with top level IAS/IPS and other officers for three years.
UTI Mutual Fund announces dividend under various schemes
Record date for dividend is 30 December 2013
UTI Bond Fund- Dividend Option Existing Plan & Dividend Option Direct Plan: Rs 0.10 per unit (1%)
UTI Treasury Advantage Fund- Quarterly Dividend Plan: Rs 10 per unit (1%)
UTI Treasury Advantage Fund- Quarterly Dividend Option -Institutional Plan-Existing Plan & Quarterly Dividend Option -Institutional Plan-Direct Plan: Rs 15 per unit (1.50%)
UTI Short Term Income Fund- Regular Option Dividend Sub-Option & Institutional Option Dividend Sub-Option-Existing Plan: Rs 0.30 per unit (3%)
UTI Short Term Income Fund- Institutional Option Dividend Sub-Option-Direct Plan: Rs 0.325 per unit (3.25%)
UTI Dynamic Bond Fund- Dividend Option Existing Plan: Rs 0.10 per unit (1%)
UTI Income Opportunities Fund- Dividend Option Existing Plan: Rs 0.20 per unit (2%)
UTI Income Opportunities Fund- Dividend Option Direct Plan: Rs 0.25 per unit (2.50%)
Birla Sun Life Mutual Fund announces dividend under two schemes
Record date for dividend is 31 December 2013
Birla Sun Life Monthly Income-
Regular Plan - Quarterly Dividend Option: 0.2577
Direct Plan - Quarterly Dividend Option: 0.2586
Birla Sun Life Dynamic Bond Fund-
Regular Plan - Quarterly Dividend Option: 0.3299
Direct Plan - Quarterly Dividend Option: 0.3311
UTI Fixed Term Income Fund – Series XIII – II (368 Days) Announces Dividend
Record date for dividend is 30 December 2013
Edelweiss Diversified Growth Equity Top 100 Fund announces change in exit load
With effect from 27 December 2013
If the units are redeemed / switched out on or before 545 days from the date of allotment – 1.00%
If the units are redeemed / switched out on or after 546 days from the date of allotment – Nil
The revised exit load as mentioned hereinabove shall be applicable on a prospective basis in respect of subscriptions in the scheme on and after the effective date.
Tata Fixed Income Portfolio Fund-Scheme B3 announces dividend
Record date for dividend is 31 December 2013
IDFC Mutual Fund announces dividend under various schemes
Record date for dividend is 30 December 2013
IDFC Arbitrage Plus Fund-Regular Plan-Dividend Option: 0.055
IDFC Arbitrage Plus Fund- Direct Plan-Dividend Option: 0.059
IDFC Arbitrage Plus Fund- Plan B-Dividend Option: 0.050
IDFC Arbitrage Fund-Regular Plan-Dividend Option: 0.060
IDFC Arbitrage Fund-Direct Plan-Dividend Option: 0.065
IDFC Arbitrage Fund- Plan B-Dividend Option: 0.005
IDFC Asset Allocation Fund of Fund-Aggressive Plan-Regular Plan-Dividend Option: 0.060
IDFC Asset Allocation Fund of Fund-Aggressive Plan-Direct Plan-Dividend Option: 0.060
IDFC Asset Allocation Fund of Fund-Conservative Plan-Regular Plan-Dividend Option: 0.030
IDFC Asset Allocation Fund of Fund-Conservative Plan-Direct Plan-Dividend Option: 0.030
IDFC Asset Allocation Fund of Fund-Moderate Plan-Regular Plan-Dividend Option: 0.027
SBI Debt Fund Series-366 Days-20 announces maturity
The schemes will mature on 31 December 2013
20 PSUs can help cut fiscal deficit by Rs 20,000 crore- Crisil Research
CRISIL Research has estimated that the centre can reduce its fiscal
deficit by as much as Rs 20,000 crore this fiscal by using cash reserves
of public sector units (PSUs).
By March 31, 2014, the top 20 PSUs, by cash holding, will have an estimated pre-dividend corpus of around Rs 160,000 crore.
CRISIL Research's analysis shows these companies are comfortably placed to pay special dividends of Rs 27,000 crore over and above their normal dividend payouts, without impacting capex plans.
“Apart from the expected shortfall in tax revenue collections, the Union government may not be able to meet its disinvestment target, which could result in it falling short of the budgeted fiscal deficit. In such a scenario, the cash reserves of PSUs provide an alternative source of income. However, a lot will depend on whether the government is able to convince the companies to part with the surplus cash as a special dividend,” said Mukesh Agarwal, President, CRISIL Research.
At the end of the last fiscal, the total cash holding with these 20 PSUs was Rs 170,000 crore. CRISIL Research expects internal accruals and debt inflows (for project financing) to meet most of the capex requirements in 2013-14. By the end of this fiscal, the pre-dividend corpus with these companies is expected to be around Rs 160,000 crore.
We estimate, these companies are well placed to distribute 40% of the corpus (Rs 64,000 crore) as dividend without impacting growth plans.
That is Rs 27,000 crore more than the Rs 37,000 crore dividend paid by these companies last fiscal. In proportion to the shareholding, the excess payout to the government could, thus, be Rs 20,000 crore (out of the extra Rs 27,000 crore).
Without incorporating the extra dividends (over and above what was paid last year), CRISIL Research expects this year's fiscal deficit at 5.2% of the gross domestic product (GDP).
The Rs 20,000 crore additional income would approximate 20 basis points of the fiscal deficit, which can help the government reach closer to its stated fiscal deficit target of 4.8%.
Adds Sandeep Sabharwal, Senior Director, CRISIL Research: “The government will have to cut spending to meet its fiscal deficit goal. But this may not augur well for an economy that has slowed down and fresh spending cuts can also create growth hurdles. Hence, the government could persuade companies with large cash reserves to announce special dividends or a buyback programme.”
By March 31, 2014, the top 20 PSUs, by cash holding, will have an estimated pre-dividend corpus of around Rs 160,000 crore.
CRISIL Research's analysis shows these companies are comfortably placed to pay special dividends of Rs 27,000 crore over and above their normal dividend payouts, without impacting capex plans.
“Apart from the expected shortfall in tax revenue collections, the Union government may not be able to meet its disinvestment target, which could result in it falling short of the budgeted fiscal deficit. In such a scenario, the cash reserves of PSUs provide an alternative source of income. However, a lot will depend on whether the government is able to convince the companies to part with the surplus cash as a special dividend,” said Mukesh Agarwal, President, CRISIL Research.
At the end of the last fiscal, the total cash holding with these 20 PSUs was Rs 170,000 crore. CRISIL Research expects internal accruals and debt inflows (for project financing) to meet most of the capex requirements in 2013-14. By the end of this fiscal, the pre-dividend corpus with these companies is expected to be around Rs 160,000 crore.
We estimate, these companies are well placed to distribute 40% of the corpus (Rs 64,000 crore) as dividend without impacting growth plans.
That is Rs 27,000 crore more than the Rs 37,000 crore dividend paid by these companies last fiscal. In proportion to the shareholding, the excess payout to the government could, thus, be Rs 20,000 crore (out of the extra Rs 27,000 crore).
Without incorporating the extra dividends (over and above what was paid last year), CRISIL Research expects this year's fiscal deficit at 5.2% of the gross domestic product (GDP).
The Rs 20,000 crore additional income would approximate 20 basis points of the fiscal deficit, which can help the government reach closer to its stated fiscal deficit target of 4.8%.
Adds Sandeep Sabharwal, Senior Director, CRISIL Research: “The government will have to cut spending to meet its fiscal deficit goal. But this may not augur well for an economy that has slowed down and fresh spending cuts can also create growth hurdles. Hence, the government could persuade companies with large cash reserves to announce special dividends or a buyback programme.”
Rising inflation needs to be tackled at grassroot level as there exists enough agricultural production to serve food demand in the economy-PHD Chamber
Welcomes the status quo by RBI
RBI in its mid quarter review of monetary policy for 2013-14 has kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 7.75% and the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liability (NDTL).
Consequently, the reverse repo rate under the LAF will remain unchanged at 6.75% and the marginal standing facility (MSF) rate and the Bank Rate at 8.75%.
The headline inflation has increased on account of jump in the food prices. While inflation excluding food and fuel have been stable, asserts Mr. Khaitan
Rising inflation needs to be tackled at grass root level as there exists enough agricultural production to serve food demand in the economy but the delivery from the farm gate to consumer doorstep is problematic in terms of various hurdles in the supply chain management, he said
Going ahead, we believe food inflation should also come under control vis-à-vis bumper crop production this year and that would pave the way for turnaround in the economy and help macro-economic environment to stabilize and growth to consolidate, going forward, he added.
CCEA approves coal supplies to nine power projects
Decides to provide additional coal supplies to for a period of three years till September 2016
There were 24 Thermal Power Plants (TPPs) / units with tapering linkages within 78000 MW capacity. Only the quantities admissible under the Tapering Linkage Policy were approved for such plants. Subsequently, requests were received from developers and recommended by the Ministry of Power (MoP) that some of the TPPs with tapering linkages could not develop their linked coal blocks as per the prescribed schedule for reasons beyond their control and therefore, coal supplies for such plants should continue.
It has been proposed to provide additional coal supplies to these nine units for a period of three years (till 30 September 2016) or for the period that they were affected by the said policy or till such time the production actually starts from the blocks, whichever is earlier.
It has also been proposed that the position would be reviewed at the end of the First, Second and Third year by the Ministry of Coal (MoC) along with MoP and Planning Commission.
While the coal quantities admissible under Tapering Linkage Policy will be supplied through FSA, the additional quantities will be supplied on Memorandum of Understanding (MoU) basis, subject to availability of coal.
The CCEA had earlier approved coal supplies to Thermal Power Plants (TPPs) with a capacity of 78,000 MW commissioned/ to be commissioned during the period from 01 March 2009 to 31 March 2015. Domestic coal quantities were decided at 65%, 65%, 67% and 75% during the remaining four years of 12th Plan.
To meet the balance obligations, Coal India (CIL) is to import coal and supply to willing TPPs. The TPPs can also import coal themselves. A Presidential Directive has been issued to CIL accordingly and 157 FSAs for a capacity of 71145 MW have been signed so far.
Rupee closes lower
At 62.16/17 per dollar
Rupee closed at 62.16/17 per dollar on Thursday (26 December 2013),
compared to its previous close of 61.79/80 on Tuesday (24 December
2013).
Morning Bells: Bond yields ease slightly
10-year G-sec Paper yield declines to 8.86%
The total trading volume on central banks gilts trading platform was thin at Rs 1255 crore.
Bond yields eased slightly in the early trading session. The sentiments are weak in the gilts market, as the traders remains worried about interest rate hike from central bank.
The weighted average rate in the overnight call money increased to 8.84% at 11.25 am compared to 8.76% in previous session. The call money rate was hovering in the range of 8.65% to 8.90% with the volume of Rs 10109.21 crore.
Tuesday, December 24, 2013
Reliance Tax Saver (ELSS) Fund Announces Dividend
Record date for dividend is 26 December 2013
Dividend Plan: 0.30
Direct Plan-Dividend Plan: 0.35
Franklin Templeton Mutual Fund announces dividend under various schemes
Record date for dividend is 27 December 2013
Templeton India Income Fund-Dividend Plan & Direct-Dividend option:
Individuals & HUF: 0.175
Others: 0.149
Templeton India Income Builder Account-Plan A & B-Quarterly Dividend Option & Plan A-Direct- Quarterly Dividend Option:
Individuals & HUF: 0.219
Others: 0.186
Templeton India Income Opportunities Fund-Dividend Option & Direct- Dividend Option:
Individuals & HUF: 0.306
Others: 0.261
Templeton India Corporate Bond Opportunities Fund-Dividend option & Direct-Dividend Option:
Individuals & HUF: 0.306
Others: 0.261
Templeton India Low Duration Fund-Quarterly Dividend Option & Direct-Quarterly Dividend Option:
Individuals & HUF: 0.236
Others: 0.201
Templeton India Government Securities Fund-Composite Plan-Dividend Plan & Direct-Dividend Option:
Individuals & HUF: 0.043
Others: 0.037
Templeton India Government Securities Fund-Long Term Plan-Quarterly Dividend Plan & Direct-Quarterly Dividend Option:
Individuals & HUF: 0.043
Others: 0.037
Templeton India Government Securities Fund-Treasury Plan-Dividend Plan & Direct-Dividend Option:
Individuals & HUF: 0.131
Others: 0.111
Templeton India Short Term Income Plan-Retail Plan-Quarterly Dividend Option & Retail Plan-Direct Plan-Quarterly Dividend Option:
Individuals & HUF: 17.518
Others: 14.926
Templeton Floating Rate Income Fund-Retail Plan-Quarterly Dividend Option & Retail Plan-Direct-Quarterly Dividend Option:
Individuals & HUF: 0.175
Others: 0.149
FT India Monthly Income Plan-Plan A & B-Quarterly Dividend Option & Plan A-Direct-Quarterly Dividend Option:
Individuals & HUF: 0.197
Others: 0.167
FT India Life Stage Fund of Funds-50s Plus Plan-Dividend Plan & 50s Plus Plan-Direct-dividend Option:
Individuals & HUF: 0.219
Others: 0.186
FT India Life Stage Fund of Funds-50s Plus Floating Rate Plan-Dividend Plan & 50s Plus Floating Rate Plan-Direct-dividend Option:
Individuals & HUF: 0.240
Others: 0.205
Motilal Oswal MOSt Focused 25 Fund announces change in asset allocation pattern
With effect from 27 January 2013
Equity and equity related instruments (subject to overall limit of 25 companies) selected from top 100 listed companies by market capitalization: 65%-100%
Equity and equity related instruments (subject to overall limit of 25 companies) of the next 50 companies by market capitalization: up to 25%
Debt, money market instruments, g-sec, bonds, cash and cash equivalents etc.: up to 10%
Religare Invesco Tax Plan announces dividend
Record date for dividend is 27 December 2013
Baroda Pioneer Mutual Fund announces dividend under three schemes
Record date for dividend is 27 December 2013
Baroda Pioneer Public Sector Undertaking (PSU) Bond Fund-Plan A-Quarterly Dividend Option: 100% of distributable surplus as on record date.
Baroda Pioneer Treasury Advantage Fund-Quarterly Dividend Option-Plan A, Plan B (Direct), Erstwhile Regular Plan: entire distributable surplus as on record date.
Baroda Pioneer Monthly Income Plan (MIP) Fund-Plan A Quarterly Dividend Option: 0.20
AMFI urges Indians to save money through Mutual Funds
Kick-starts a multicity radio campaign “Mutual Fund – Savings Ka Naya Tareeka”
The radio commercials will be played at top FM stations in the metros, Tier I and Tier II cities. With an aim to increase retail participation, the radio campaign projects investing in mutual funds as an effective practice. The radio investor awareness program is part of the earlier campaign by AMFI, “Savings Ka Naya Tareeka”. Besides these campaigns, the Mutual Fund industry has initiated a ‘District Adoption Program' launched recently; in the first phase 178 cities have been adopted by 32 mutual fund companies. The selection of districts was based on the savings potential seen in the districts.
Speaking on this initiative, Mr Sundeep Sikka, Chairman AMFI and CEO, Reliance Mutual Fund said, “Financial awareness is the core aspect to ensure the upward trend in the economy. Although the mutual fund industry has guaranteed a niche` place in the finance sector, there is still a long way to go for the awareness to take shape among the working class. The radio investor education is a very efficient way to reach out to the masses”.
Mr. V Ramesh, Deputy CEO, AMFI, said, “Investor awareness is a generation game and does not happen overnight. After successful campaign on TV, we are now looking to leverage the reach of radio to make the campaign more effective”
Mr. Jaideep Bhattacharya, Chairman, AMFI committee on Financial Literacy and MD, Baroda Pioneer AMC said, “The primary goal of the radio campaign is to spread awareness and reach potential investors in underserved markets. In our country, where over 50% of domestic savings go into fixed deposits, the mutual fund industry has a huge scope for growth. We are confident, that through this campaign we will be able to alter how mutual fund is perceived in Tier I & II cities and channelize savings through mutual fund route.”
The radio campaign is covering cities like Ludhiana, Nagpur, Bhubaneswar, Cochin, Patna, Guwahati, Indore, Rajkot, Nashik, Coimbatore, Jamshedpur, Varanasi, Bhopal, Mangalore, Jalandhar, Jodhpur, Dehradun, Agra, Raipur, Ranchi along with Mumbai and Delhi.
Canara Robeco Mutual Fund Announces Dividend Under Three Schemes
Record date for dividend is 27 December 2013
Canara Robeco Income – Regular Plan-Quarterly Dividend Option & Direct Plan- Quarterly Dividend Option: 0.20 under each plan/option
Canara Robeco Monthly Income Plan - Regular Plan-Quarterly Dividend Option & Direct Plan- Quarterly Dividend Option: 0.30 under each plan/option
Canara Robeco InDiGo Fund – Regular Plan-Quarterly Dividend Option & Direct Plan- Quarterly Dividend Option: 0.10 under each plan/option
Birla Sun Life Mutual Fund announces dividend under two schemes
Record date for dividend is 27 December 2013
The quantum of dividend (Rs per unit) on the face value of Rs 10 per unit will be:
Birla Sun Life Dividend Yield Plus: 0.50
Birla Sun Life India Opportunities Fund: 1.50
HDFC Mutual Fund acquires the schemes of Morgan Stanley Mutual Fund in India
HDFC Mutual Fund has announced the signing of a definitive agreement
for acquiring all the eight schemes of Morgan Stanley Mutual Fund in
India. The agreement is subject to regulatory approvals as required. The
average combined assets under management of the eight schemes for
quarter ended 30 September 2013 was Rs. 3290 crores.
Mr. Milind Barve, Managing Director of HDFC Asset Management Company Limited said, “HDFC Mutual Fund has acquired a portfolio of strong performing domestic mutual fund schemes from Morgan Stanley and this acquisition is another step towards expanding our mutual fund customer base. We look forward to welcoming the investors in the eight schemes of Morgan Stanley Mutual Fund into the HDFC family.”
Mr. Milind Barve, Managing Director of HDFC Asset Management Company Limited said, “HDFC Mutual Fund has acquired a portfolio of strong performing domestic mutual fund schemes from Morgan Stanley and this acquisition is another step towards expanding our mutual fund customer base. We look forward to welcoming the investors in the eight schemes of Morgan Stanley Mutual Fund into the HDFC family.”
ICICI Prudential Mutual Fund Announces Dividend Under various Schemes
Record date for dividend is 27 December 2013
ICICI Prudential Dynamic Bond Fund:
Direct Plan-Quarterly Dividend: 0.0920
Regular Plan-Quarterly Dividend: 0.0922
ICICI Prudential Fixed Maturity Plan-Series 53-3 Year Plan B-Dividend: 0.05
ICICI Prudential Interval Fund-Quarterly Interval Plan II:
Retail Dividend: 0.2138
Regular Plan-Dividend: Entire distributable surplus as on record date
ICICI Prudential FMCG Fund-Regular Plan-Dividend: 4.00
ICICI Prudential Equity-Arbitrage Fund:
Direct Plan-Dividend: 0.0569
Regular Plan-Dividend: 0.0534
ICICI Prudential Blended Plan-Plan A:
Direct Plan-Dividend: 0.0585
Regular Plan-Dividend: 0.0552
ICICI Prudential Balanced Advantage Fund-Direct Plan-Monthly Dividend & Regular Plan- Monthly Dividend: 0.06 under plan/option
SBI Mutual Fund announces dividend under various schemes
Record date for dividend is 27 December 2013
SBI Magnum Balanced Fund-Regular Plan-Individuals & HUF and Others: 1.00 each
SBI Magnum Monthly Income Plan-(Quarterly)-Regular Plan & Direct Plan:
Individual & HUF: 0.20
Other: 0.20
SBI Magnum Monthly Income Plan-Floater (Quarterly)-Regular Plan & Direct Plan:
Individual & HUF: 0.30
Other: 0.30
SBI Magnum Monthly Income Fund-Floating Rate-LTP (Quarterly)-Regular Plan & Direct Plan:
Individual & HUF: 0.40
Other: 0.40
SBI Regular Savings Fund (Quarterly)-Regular Plan & Direct Plan:
Individual & HUF: 0.20
Other: 0.20
SBI Magnum Gilt Fund-Long-Term Plan (Quarterly)-Regular Plan, Direct Plan, PF-Regular Plan, PF-Fixed Period-1 Year, PF-Fixed Period-2 Years and PF-Fixed Period-3 Years (each):
Individual & HUF: 0.15
Other: 0.15
BNP Paribas Mutual Fund announces dividend under various schemes
Record date for dividend is 27 December 2013
BNP Paribas Dividend Yield Fund:
BNP Paribas Dividend Yield Fund: 0.08
BNP Paribas Dividend Yield Fund-Direct Plan: 0.08
BNP Paribas Short Term Income Fund:
Regular quarterly dividend: 0.2321
Quarterly dividend: 0.2360
Direct Plan-quarterly dividend: 0.2523
BNP Paribas Bond Fund:
Regular quarterly dividend: 0.1833
Quarterly dividend: 0.1906
Direct Plan-quarterly dividend: 0.1999
BNP Paribas Monthly Income Plan:
Quarterly dividend: 0.2021
Direct Plan-quarterly dividend: 0.2131
BNP Paribas Flexi Debt Fund:
Quarterly dividend: 0.0356
Direct plan- Quarterly dividend: 0.0617
Morgan Stanley Mutual Fund announces dividend under two schemes
Record date for dividend is 27 December 2013
Morgan Stanley Multi Asset Fund-Plan A-Regular Plan-Quarterly Dividend Option: 0.06
Morgan Stanley Multi Asset Fund-Plan A-Direct Plan-Quarterly Dividend Option: 0.06
Morgan Stanley Active Bond Fund-Regular Plan-Quarterly Dividend Option: 0.15
Morgan Stanley Active Bond Fund-Direct Plan-Quarterly Dividend Option: 0.15
Deutsche Mutual Fund announces dividend under various schemes
Record date for dividend is 27 December 2013
DWS Cash Opportunities Fund:
Regular Plan-Quarterly Dividend Option & Direct Plan-Quarterly Dividend Option: 0.20 each
DWS Premier Bond Fund:
Regular Plan-Quarterly Dividend Option & Direct Plan-Quarterly Dividend Option & Premium Plus Plan-Quarterly Dividend Option: 0.20 each
DWS Short Maturity Fund: Direct Plan-Quarterly Dividend Option, Regular Plan-Quarterly Dividend & Premium Plus Plan-Quarterly Dividend Option: 0.20 each
DWS Treasury Fund Cash Plan:
Regular Plan-Quarterly Dividend: 2.00
DWS Treasury Fund Investment Plan:
Regular Plan-Quarterly Dividend & Direct Plan-Quarterly Dividend Option: 0.20 each
DWS Twin Advantage Fund:
Regular Plan-Quarterly Dividend: 0.10
DWS Ultra Short Term Fund:
Institutional Plan- Quarterly Dividend, Direct Plan-Quarterly Dividend Option & Regular Plan-Quarterly Dividend: 0.20 each
DWS Fixed Maturity Plan Series 16:
Quarterly Dividend option: 0.20
DWS Fixed Maturity Plan Series 31:
Regular Plan-Quarterly Dividend option: 0.20
DWS Fixed Maturity Plan Series 32:
Regular Plan-Quarterly Dividend option: 0.20
DWS Hybrid Fixed Term Fund Series 10:
Quarterly Dividend option: 0.10
DWS Hybrid Fixed Term Fund Series 8:
Quarterly Dividend option: 0.20
DWS Hybrid Fixed Term Fund Series 9:
Quarterly Dividend option: 0.20
DWS Hybrid Fixed Term Fund Series 7:
Quarterly Dividend option: 0.20
DWS Interval Fund-Annual Plan Series 1:
Regular Plan-Quarterly Dividend option: 0.20
DWS Fixed Term Fund Series 91:
Dividend option: 0.20
DWS Fixed Term Fund Series 96:
Dividend option: 0.20
DWS Alpha Equity Fund-Direct Plan-Dividend Option and Wealth Plan-Dividend Option: 1.00 each
Expects Repo rate to close at 7.5% by end of the current fiscal year-Care Ratings
RBI action has come as a surprise as the debate prior to the policy
was on whether rates would be increased by 25 bps or 50 bps. Status quo
was not an expected move.
RBI has preferred to follow a policy of tracking expected inflation when deciding on current action. This indicates that RBI expects inflation to come down in December.
RBI has spoken of the tapering programme and its impact on policy. The tapering programme could cause a movement of foreign funds away from our debt market. However, the final call taken will also take into account the developments on the balance of payments front. A strong current account coupled with healthy reserves may not prompt rate action even in case the tapering programme is invoked by the Fed. The implication is that we can expect policy changes even in between the policy dates if warranted.
The 10-years yield has moved downwards after the announcement and the 8.83% paper may be expected to range around 8.6-8.7% on account of the unchanged rate stance of the RBI.
As inflation pressures are likely to subside in the coming months on account decline in food prices in the coming months, CARE expects Repo rate to close at 7.5% by end of the current fiscal year assuming CPI inflation comes down towards 9% and WPI stable at 6-6.5%. A lot will depend on the rabi crop and its impact on prices. .
RBI has preferred to follow a policy of tracking expected inflation when deciding on current action. This indicates that RBI expects inflation to come down in December.
RBI has spoken of the tapering programme and its impact on policy. The tapering programme could cause a movement of foreign funds away from our debt market. However, the final call taken will also take into account the developments on the balance of payments front. A strong current account coupled with healthy reserves may not prompt rate action even in case the tapering programme is invoked by the Fed. The implication is that we can expect policy changes even in between the policy dates if warranted.
The 10-years yield has moved downwards after the announcement and the 8.83% paper may be expected to range around 8.6-8.7% on account of the unchanged rate stance of the RBI.
As inflation pressures are likely to subside in the coming months on account decline in food prices in the coming months, CARE expects Repo rate to close at 7.5% by end of the current fiscal year assuming CPI inflation comes down towards 9% and WPI stable at 6-6.5%. A lot will depend on the rabi crop and its impact on prices. .
Bullion prices remain under pressure
Gold prices finished below $1,200 an ounce
Bullion prices remained under pressure Monday, 23 December 2013 at Comex. Gold prices finished below $1,200 an ounce. Gold prices finished the U.S. day session weaker as the approaching holidays have squelched participation in most markets. With the Christmas holiday on Wednesday look for thin volumes and lackluster trading conditions for most of this week and next week.
Gold for February delivery declined $6.70, or 0.6%, to $1,197 an ounce.
March silver lost 4 cents, or 0.2%, to close at $19.41 an ounce.
In overnight trading the featured news was spiking short-term interest rates in China, mainly due to end-of-quarter and end-of-year pressures on banks to square up their books. The markets are so far mostly ignoring the matter.
Today's economic data at Wall Street was limited to just two reports, neither of which saw a notable reaction in the market. Personal income increased 0.2% in November after declining 0.1% in October. The consensus expected personal income to increase 0.5%. Compensation levels were a little softer than the employment report implied, increasing 0.3% instead of 0.6%. That difference likely caused the weaker-than-expected income gain. Personal spending rose 0.5%, in-line with consensus expectations, after increasing an upwardly revised 0.4% (from 0.3%) in October.
Separately, the December University of Michigan Consumer Sentiment Index remained at 82.5 in the final reading while the consensus expected the index to be revised up to 83.3.
Crude slips
Positive economic data restrict the fall
Crude Oil futures drifted lower on Monday, 23 December 2013 at Nymex but continued to hover just below a two-month high as traders weighed signs of an improving U.S. economy.
February crude oil fell 41 cents, or 0.4%, to close at $98.91 a barrel.
In overnight trading the featured news was spiking short-term interest rates in China, mainly due to end-of-quarter and end-of-year pressures on banks to square up their books. The markets are so far mostly ignoring the matter.
Today's economic data at Wall Street was limited to just two reports, neither of which saw a notable reaction in the market. Personal income increased 0.2% in November after declining 0.1% in October. The consensus expected personal income to increase 0.5%. Compensation levels were a little softer than the employment report implied, increasing 0.3% instead of 0.6%. That difference likely caused the weaker-than-expected income gain. Personal spending rose 0.5%, in-line with consensus expectations, after increasing an upwardly revised 0.4% (from 0.3%) in October.
Separately, the December University of Michigan Consumer Sentiment Index remained at 82.5 in the final reading while the consensus expected the index to be revised up to 83.3.
January natural gas climbed 4 cents to $4.46 per million British thermal units. January gasoline ended unchanged at $2.78 a gallon.
Rupee grows stronger
At 61.84/85 per dollar
Indian rupee grew stronger on Tuesday (24 December 2013) at 61.84/85 per
dollar against its previous close of 61.9525/9625 on Monday, tracking
gains in domestic shares.
Evening Bells: Bond yields rise
10-year G-sec Paper yield rises to 8.82%
The total trading volume on central bank's gilts trading platform stood Rs 13800 crore.
Bond yields increased on concerns that RBI may resume tightening policy rates in near term.
The scheduled commercial banks borrowed Rs 40927 crore from RBI against 64 bids submitted at repo window under LAF operation held today.
The weighted average rate in the overnight call money increased to 8.81% compared to 8.75% in previous session. The call money rate hovered in the range of 8.70% to 8.85% with the volume of Rs 19489.90 crore.
The Government of India have announced the sale (re-issue) of “1.44% Inflation Indexed Government Stock-2023” for a notified amount of Rs 500 crore through price based auction. The auction will be conducted on 31 December 2013.
US stocks continue to strike record highs
Apple supports the tech scetor rising close to 4%
U.S. stock indices extended their record run on Monday, 23 December
2013, with the S&P 500 and the Dow Jones Industrial Average closing
at all-time highs while the Nasdaq Composite ended at its highest level
since September 2000. Stocks jumped at the open with the technology
sector driving the early surge. The space received considerable support
from its largest component, Apple.
The S&P 500 rose 9.67 points, or 0.5%, to finish at 1,827.99, while the Dow advanced 73.47 points to 16,294.61. The Nasdaq Composite jumped 44.16 points to 4,148.90.
Eight out of ten economic sectors ended higher as the telecom sector posted a solid gain while consumer staples, health care and utilities lagged.
Apple spiked 3.8% after inking a long-rumored distribution agreement with China Mobile.
In overnight trading the featured news was spiking short-term interest rates in China, mainly due to end-of-quarter and end-of-year pressures on banks to square up their books.
Today's economic data at Wall Street was limited to just two reports, neither of which saw a notable reaction in the market. Personal income increased 0.2% in November after declining 0.1% in October. The consensus expected personal income to increase 0.5%. Compensation levels were a little softer than the employment report implied, increasing 0.3% instead of 0.6%. That difference likely caused the weaker-than-expected income gain. Personal spending rose 0.5%, in-line with consensus expectations, after increasing an upwardly revised 0.4% (from 0.3%) in October.
Separately, the December University of Michigan Consumer Sentiment Index remained at 82.5 in the final reading while the consensus expected the index to be revised up to 83.3.
Emboldened by Apple's strength, other top sector components also rallied. Google, Oracle and Intel gained between 1.1% and 1.5%. Despite Intel's strength, other chipmakers struggled to keep pace with the secto
Bullion prices remained under pressure Monday, 23 December 2013 at Comex. Gold prices finished below $1,200 an ounce. Gold prices finished the U.S. day session weaker as the approaching holidays have squelched participation in most markets. With the Christmas holiday on Wednesday look for thin volumes and lackluster trading conditions for most of this week and next week.
Gold for February delivery declined $6.70, or 0.6%, to $1,197 an ounce. March silver lost 4 cents, or 0.2%, to close at $19.41 an ounce.
Crude Oil futures drifted lower on Monday, 23 December 2013 at Nymex but continued to hover just below a two-month high as traders weighed signs of an improving U.S. economy. February crude oil fell 41 cents, or 0.4%, to close at $98.91 a barrel.
Indian ADRs closed higher on Monday. Among banks, ICICI Bank climbed 0.55% to $36.56 per ADR and HDFC Bank rose 1.35% to $34.57. In the technology space, Infosys was down 0.21% to $56.88 while Wipro gained 0.96% to $12.61. Among others, Tata Motors rose 0.72% to $30.57 and Dr Reddy's Labs soared 0.17% to $40.96.
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while November Durable Orders will cross the wires at 8:30 ET. The October FHFA Housing Price Index will be reported at 9:00 ET while the New Home Sales report for November will be revealed at 10:00 ET.
The S&P 500 rose 9.67 points, or 0.5%, to finish at 1,827.99, while the Dow advanced 73.47 points to 16,294.61. The Nasdaq Composite jumped 44.16 points to 4,148.90.
Eight out of ten economic sectors ended higher as the telecom sector posted a solid gain while consumer staples, health care and utilities lagged.
Apple spiked 3.8% after inking a long-rumored distribution agreement with China Mobile.
In overnight trading the featured news was spiking short-term interest rates in China, mainly due to end-of-quarter and end-of-year pressures on banks to square up their books.
Today's economic data at Wall Street was limited to just two reports, neither of which saw a notable reaction in the market. Personal income increased 0.2% in November after declining 0.1% in October. The consensus expected personal income to increase 0.5%. Compensation levels were a little softer than the employment report implied, increasing 0.3% instead of 0.6%. That difference likely caused the weaker-than-expected income gain. Personal spending rose 0.5%, in-line with consensus expectations, after increasing an upwardly revised 0.4% (from 0.3%) in October.
Separately, the December University of Michigan Consumer Sentiment Index remained at 82.5 in the final reading while the consensus expected the index to be revised up to 83.3.
Emboldened by Apple's strength, other top sector components also rallied. Google, Oracle and Intel gained between 1.1% and 1.5%. Despite Intel's strength, other chipmakers struggled to keep pace with the secto
Bullion prices remained under pressure Monday, 23 December 2013 at Comex. Gold prices finished below $1,200 an ounce. Gold prices finished the U.S. day session weaker as the approaching holidays have squelched participation in most markets. With the Christmas holiday on Wednesday look for thin volumes and lackluster trading conditions for most of this week and next week.
Gold for February delivery declined $6.70, or 0.6%, to $1,197 an ounce. March silver lost 4 cents, or 0.2%, to close at $19.41 an ounce.
Crude Oil futures drifted lower on Monday, 23 December 2013 at Nymex but continued to hover just below a two-month high as traders weighed signs of an improving U.S. economy. February crude oil fell 41 cents, or 0.4%, to close at $98.91 a barrel.
Indian ADRs closed higher on Monday. Among banks, ICICI Bank climbed 0.55% to $36.56 per ADR and HDFC Bank rose 1.35% to $34.57. In the technology space, Infosys was down 0.21% to $56.88 while Wipro gained 0.96% to $12.61. Among others, Tata Motors rose 0.72% to $30.57 and Dr Reddy's Labs soared 0.17% to $40.96.
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while November Durable Orders will cross the wires at 8:30 ET. The October FHFA Housing Price Index will be reported at 9:00 ET while the New Home Sales report for November will be revealed at 10:00 ET.
Asia Pacific Market: Christmas cheer for investors as Santa rally holds
Asia Pacific stocks moved further higher in quiet trade on Tuesday, 24
December 2013, catching up with gains on Wall Street overnight after
strong US economic data strengthened optimism on the U.S. economy. The
MSCI Asia Pacific Excluding Japan Index advanced 0.4% to 463.87. The
broader MSCI Asia Pacific Index was little changed at 139.19.
Sentiment was buoyed by another record session on Wall Street, with the Dow Jones industrial average and S&P 500 advancing to all-time highs overnight as economic data (personal spending and consumer confidence) continued to signal a sustained recovery. The Dow Jones closed at a new record high of 16,294.61 (+0.45%) and the S&P 500 rose to 1,827.99 (+0.53%).
The U.S. Commerce Department said on Monday that personal income increased 0.2% in November after declining 0.1% in October. Personal spending rose 0.5%, in-line with consensus expectations, after increasing an upwardly revised 0.4% (from 0.3%) in October.
A separate report showed the Thomson Reuters/University of Michigan final index of consumer sentiment in December climbed to 82.5 from 75.1 a month earlier.
International Monetary Fund chief Christine Lagarde said the Washington D.C.-based institution would raise its 2014 U.S. growth forecast from the current estimate of 2.5%, citing more certainty in 2014. Her remarks came after Friday data showed the U.S. grew at an annualized rate of 4.1% in the third quarter of the year, up from the previous estimate of 3.6%
Among Asian bourses- Japan's benchmark Nikkei225 index closed 18.91 points higher at 15.889.33 after briefly surpassing the psychologically important 16000-level, driven by buying from long-only investors after Wall Street jumped to new records overnight after strong economic data. Japanese markets were closed on Monday for a public holiday.
However, gains on the Tokyo market were limited as investors cashing in profit after the benchmark index surged to fresh six-year peak early today. Japanese stocks have enjoyed a record-breaking rally this year, backed by Tokyo's aggressive fiscal and monetary stimulus aimed at sparking sustainable growth in the world's third-largest economy. The benchmark Nikkei is up 53% this year, on track for its best annual rise since 1972.
The export-oriented Japanese stocks were mostly higher, with Alps Electric Co. rising 3.79%, Tokyo Electron adding 2.53% and Mitsubishi Motors Corp rallying 4.27% after raising its operating profit forecast by 20% for the fiscal year ending in March. Panasonic Corp. dropped 1.65% after news of a joint venture with Israeli firm Tower Semiconductor, which will take over chip making at three Panasonic plants. Asahi Co. fell 3.91% after posting a drop in its nine-month net profit.
In economic news- The Bank of Japan on Tuesday offered a bright outlook for industrial production and exports for the first quarter of 2014, indicating that Japan's economy is expected to gain momentum in the coming months ahead of a sales tax hike in April. As for the output for January-March, (industrial production) is expected to increase broadly on the basis of moderate recovery at home and overseas, the BOJ's latest economic report said. It also said that the front-loaded demand before the consumption tax hike in April 2014 will likely contribute to boosting Japan's industrial production for the fourth quarter of this year and the first quarter of 2014. The BOJ also said that Japan's exports are likely to increase moderately on the back of a moderate recovery of overseas economies. The BOJ has noted that the recovery of exports and capital investment are important factors for Japan's economy not only to gain upward momentum, but also to maintain the path toward achieving a price target of 2% sustained inflation by the first half of fiscal 2015.
Japan's government said on Tuesday that it has drafted the budget for fiscal 2014 totaling a record Y95.882 trillion, up from Y92.612 trillion for the initial fiscal 2013 budget. According to the plan, general-account spending, which excludes debt-servicing costs, will total Y72.612 trillion, up from Y70.370 trillion for this fiscal year, due to increases in public works expenditures supporting the economy and rises in social security expenditures responding to the aging society. Debt-servicing costs will total Y23.270 trillion, up from Y22.242 trillion in fiscal 2013. Fund distribution from the central government to municipalities will decrease to Y16.142 trillion from Y16.393 trillion. Tax revenue is estimated to come to Y50.001 trillion, up from Y43.096 trillion for this fiscal year, which would exceed Y50 trillion for the first time since fiscal 2008, thanks to a consumption tax hike as well as continued economic recovery.
The government also said it plans to sell Y155.100 trillion of government bonds to the market in fiscal 2014, down from an initial Y156.600 trillion for the current fiscal year. Apart from JGBs to be sold to refinance maturing bonds, the MOF will sell Y41.250 trillion in new bonds to finance the fiscal 2014 budget, down from this year's initial plan to sell Y42.851 trillion, thanks to expected rises in tax revenues. Meanwhile, total JGB issuance, which includes sales to financial institutions, individual investors and the public sector, will come to Y181.539 trillion for fiscal 2014, up from an initial plan to sell Y170.545 trillion in fiscal 2013.
The ratio of new government bond issuance to the fiscal 2014 budget will be 43.0%, down from 46.3% for this fiscal year. The outstanding balance of government bonds will total a record Y780.448 trillion, which is equivalent to 156.0% of estimated GDP for fiscal 2014. As a result, Japan will remain the most heavily indebted industrialized nation.
Australia- Headline shares on the Australian financial market moved higher for the fourth consecutive session, with the benchmark S&P/ASX 200 index rising 35.30 points to finish at 5327.20, buoyed by another record session on Wall Street overnight.
Most sectors finished higher, with financials and some names with strong global exposure were leading rally. Meanwhile, buying pressure was also evident in industrials, healthcare, consumer discretionary, energy, utilities and tech stocks, while there was a switch out of property developer stocks.
Australian top four lenders shares extended winning streak after Australia's bank regulator told the group to increase their capital buffers. Australian Prudential Regulation Authority said on Monday that the big four banks must increase the amount of capital they set aside to absorb losses by an extra 1 percentage point from January 2016. The changes, which were broadly consistent with economist expectations, are designed to reduce the risk to the broader Australian economy of a financial institution deemed by the regulator to be systemically important failing.
Among lenders, Commonwealth Bank added 0.5% to A$77.16, Westpac Bank 0.7% to A$32.14, National Australia Bank 0.5% to A$34.78 and Australia & New Zealand Banking Group 0.6% to A$32.13.
Shares in Australia's only listed health insurance provider, Nib Holdings (NHF), jumped for the second day running, rising 1.6% to $2.54, after a 2.5% lift on Monday, after the Federal Government granted approval for an increase in health premiums next year. Multinational insurers QBE Insurance Group jumped 1.13% to A$11.68 and Insurance Australia Group 1.41% to A$5.75.
Consumer related stocks were sharp higher, on expectation of strong demand pickup in Christmas business, with JB Hi-Fi gained 1.2% to A$21.38 and Harvey Norman finished up 1.6% at A$3.15. Supermarket giant Woolworths inched 0.3% higher to A$33.70, and rival Wesfarmers added 0.6% to A$43.79.
Paper merchant and packaging supplier PaperlinX (PPX) announced it will cut 75 jobs in Germany and 65 in the United Kingdom as it continues to restructure operations. PPX rose 2.3% to close at A$0.044.
Northern Star Resources shares continued their strong run, lifting 6.2% to A$0.77, adding to the 6.6% from Monday after the miner announced the purchase of the Plutonic goldmine in Western Australia for US$25 million (A$27.99 million).
China- Key benchmark indices on the China's share market moved up for second day in row, as investors chased for bottom hunting on calming jitters about liquidity crunch after People Bank of China injected 29 billion yuan of liquidity via open market operation. The Shanghai Composite rose 3.20 points to finish at 2092.91, while the CSI 300 Index added 3.65 points to close at 2288.25.
Sentiments for cyclical stocks buoyed after the People Bank of China holds first open market operation in 3-weeks to ease liquidity crunch panic. The People's Bank of China finally responded to the surge in money market rates by injecting 29 billion yuan on Tuesday via seven-day reverse repurchase agreements. It was the first time the PBOC added funding via its biweekly operations since December 3, though the bank said Friday that it added over 300 billion yuan via short-term liquidity operations at the end of last week.
Market gains were, however, limited amid concerns that 29 billion yuan won't make much of a dent in the cash demands of China's financial institutions while the PBOC's reliance on seven-day maturities highlights its unwillingness to provide longer-term funding. Further, the Chinese New Year holiday falls at the end of January and will create fresh strains on the system -- one-month rates already began responding to the onset of that holiday on Monday.
Among SSE sectors, 6/10 sectors of the SSE index advanced, with telecommunication services sector was best performer in the SSE sectoral indices, adding 1.8%, while healthcare issue was worst performer, falling 0.7%. Information technology sector advanced 1.4%, Consumer discretionary up 0.7%, utilities up 0.6% and industrials up 0.2%.
China's money markets rates declined from prior day on Tuesday, on calming jitters over liquidity crunch in the market after People's Bank of China finally responded to the surge in money market rates by injecting 29 billion yuan via seven-day reverse repurchase agreements. The seven-day repo rate, a gauge of borrowing costs among banks and usually watched as an indicator of liquidity stress, traded at a weighted average of 7.00% by late afternoon compared with 7.50% prior day. The overnight repo, a benchmark measure of interbank funding availability, traded at a weighted average of 4.15% compared with 4.62 % previous day.
Hong Kong, shares in Hong Kong market trekked higher in quiet trade, with financials and some names with strong global exposure gaining ground after a solid advance for U.S. shares overnight. The benchmark Hang Seng Index was provisionally ending 257.99 points higher at 23179.55 in the shortened session.
Among the HK 50 blue chips, 49 rose and one fell. Hang Lung Properties (00101) put on 2.7% to HK$24.45, while COSCO Pacific (01199) dipped 0.19% to HK$10.5, making themselves the largest blue-chip gainer and loser respectively.
Market heavyweights were higher. China Mobile (00941) edged up 0.5% to HK$80.95, while HSBC (00005) gained 1.2% to HK$83.5.
Major mainland banks traded broadly higher in Hong Kong after the People's Bank of China added liquidity to the financial system. Agricultural Bank of China climbed 1.34%, Bank of Communications Co rose 1.9%, and Industrial & Commercial Bank of China added 1.35%. Strong gains for financials also pushed international lenders higher, with HSBC Holdings up 1.15% and Standard Chartered added 2.15%.
Elsewhere, China Everbright gained 5.76% on news it was selling some shares of China Everbright Bank Co, which sank 1.3%, extending losses since its trading debut last week.
Shares of FIH Mobile, part of the Foxconn group, gained 9.69%, after the firm said it would swing to a profit for 2013. The stock had enjoyed strong gains in the previous session on news of a partnership with BlackBerry.
India- A bout of volatility was witnessed as key benchmark indices trimmed losses after hitting fresh intraday low in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was down 22.92 points or 0.11%, up about 60 points from the day's low and off close to 75 points from the day's high.
Among the 30-share Sensex pack, 19 stocks declined and rest of them rose. Tata Power Company (down 2.53%), Sesa Sterlite (down 2.33%) and Wipro (down 1.47%) declined.
ICICI Bank gained 0.29%. ICICI Bank on 21 December 2013 said it has cut its home loan rates for new customers by 15 basis points or 0.15 percentage points, as a part of a special scheme. It will be valid till 31 January 2014. Under the scheme, the bank will offer home loans up to Rs. 75 lakh at an interest rate of 10.25%, while loans above Rs. 75 lakh will be charged 10.50%.
Kirloskar Electric Company fell 0.75%. The company said it has successfully exported a generator duty transformer of 24/30 MVA, 115/38.5/10.5 kV for a hydro-electric project in Song-Giang, Vietnam. The announcement was made after market hours on Monday, 23 December 2013. Separately, Kirloskar Electric Company said that the lay-off at the company's factory situated in Mysore has been extended till 24 January 2014.
Elsewhere in the region, South Korea's KOSPI rose 0.24%. Indonesia's Jakarta Composite index added 0.32%. New Zealand's NZX50 index jumped 0.96%. Singapore's Straits Times index gained 0.36%. Malaysia's KLSE Composite added 0.14%. Taiwan's Taiex index shed 0.1%.
Sentiment was buoyed by another record session on Wall Street, with the Dow Jones industrial average and S&P 500 advancing to all-time highs overnight as economic data (personal spending and consumer confidence) continued to signal a sustained recovery. The Dow Jones closed at a new record high of 16,294.61 (+0.45%) and the S&P 500 rose to 1,827.99 (+0.53%).
The U.S. Commerce Department said on Monday that personal income increased 0.2% in November after declining 0.1% in October. Personal spending rose 0.5%, in-line with consensus expectations, after increasing an upwardly revised 0.4% (from 0.3%) in October.
A separate report showed the Thomson Reuters/University of Michigan final index of consumer sentiment in December climbed to 82.5 from 75.1 a month earlier.
International Monetary Fund chief Christine Lagarde said the Washington D.C.-based institution would raise its 2014 U.S. growth forecast from the current estimate of 2.5%, citing more certainty in 2014. Her remarks came after Friday data showed the U.S. grew at an annualized rate of 4.1% in the third quarter of the year, up from the previous estimate of 3.6%
Among Asian bourses- Japan's benchmark Nikkei225 index closed 18.91 points higher at 15.889.33 after briefly surpassing the psychologically important 16000-level, driven by buying from long-only investors after Wall Street jumped to new records overnight after strong economic data. Japanese markets were closed on Monday for a public holiday.
However, gains on the Tokyo market were limited as investors cashing in profit after the benchmark index surged to fresh six-year peak early today. Japanese stocks have enjoyed a record-breaking rally this year, backed by Tokyo's aggressive fiscal and monetary stimulus aimed at sparking sustainable growth in the world's third-largest economy. The benchmark Nikkei is up 53% this year, on track for its best annual rise since 1972.
The export-oriented Japanese stocks were mostly higher, with Alps Electric Co. rising 3.79%, Tokyo Electron adding 2.53% and Mitsubishi Motors Corp rallying 4.27% after raising its operating profit forecast by 20% for the fiscal year ending in March. Panasonic Corp. dropped 1.65% after news of a joint venture with Israeli firm Tower Semiconductor, which will take over chip making at three Panasonic plants. Asahi Co. fell 3.91% after posting a drop in its nine-month net profit.
In economic news- The Bank of Japan on Tuesday offered a bright outlook for industrial production and exports for the first quarter of 2014, indicating that Japan's economy is expected to gain momentum in the coming months ahead of a sales tax hike in April. As for the output for January-March, (industrial production) is expected to increase broadly on the basis of moderate recovery at home and overseas, the BOJ's latest economic report said. It also said that the front-loaded demand before the consumption tax hike in April 2014 will likely contribute to boosting Japan's industrial production for the fourth quarter of this year and the first quarter of 2014. The BOJ also said that Japan's exports are likely to increase moderately on the back of a moderate recovery of overseas economies. The BOJ has noted that the recovery of exports and capital investment are important factors for Japan's economy not only to gain upward momentum, but also to maintain the path toward achieving a price target of 2% sustained inflation by the first half of fiscal 2015.
Japan's government said on Tuesday that it has drafted the budget for fiscal 2014 totaling a record Y95.882 trillion, up from Y92.612 trillion for the initial fiscal 2013 budget. According to the plan, general-account spending, which excludes debt-servicing costs, will total Y72.612 trillion, up from Y70.370 trillion for this fiscal year, due to increases in public works expenditures supporting the economy and rises in social security expenditures responding to the aging society. Debt-servicing costs will total Y23.270 trillion, up from Y22.242 trillion in fiscal 2013. Fund distribution from the central government to municipalities will decrease to Y16.142 trillion from Y16.393 trillion. Tax revenue is estimated to come to Y50.001 trillion, up from Y43.096 trillion for this fiscal year, which would exceed Y50 trillion for the first time since fiscal 2008, thanks to a consumption tax hike as well as continued economic recovery.
The government also said it plans to sell Y155.100 trillion of government bonds to the market in fiscal 2014, down from an initial Y156.600 trillion for the current fiscal year. Apart from JGBs to be sold to refinance maturing bonds, the MOF will sell Y41.250 trillion in new bonds to finance the fiscal 2014 budget, down from this year's initial plan to sell Y42.851 trillion, thanks to expected rises in tax revenues. Meanwhile, total JGB issuance, which includes sales to financial institutions, individual investors and the public sector, will come to Y181.539 trillion for fiscal 2014, up from an initial plan to sell Y170.545 trillion in fiscal 2013.
The ratio of new government bond issuance to the fiscal 2014 budget will be 43.0%, down from 46.3% for this fiscal year. The outstanding balance of government bonds will total a record Y780.448 trillion, which is equivalent to 156.0% of estimated GDP for fiscal 2014. As a result, Japan will remain the most heavily indebted industrialized nation.
Australia- Headline shares on the Australian financial market moved higher for the fourth consecutive session, with the benchmark S&P/ASX 200 index rising 35.30 points to finish at 5327.20, buoyed by another record session on Wall Street overnight.
Most sectors finished higher, with financials and some names with strong global exposure were leading rally. Meanwhile, buying pressure was also evident in industrials, healthcare, consumer discretionary, energy, utilities and tech stocks, while there was a switch out of property developer stocks.
Australian top four lenders shares extended winning streak after Australia's bank regulator told the group to increase their capital buffers. Australian Prudential Regulation Authority said on Monday that the big four banks must increase the amount of capital they set aside to absorb losses by an extra 1 percentage point from January 2016. The changes, which were broadly consistent with economist expectations, are designed to reduce the risk to the broader Australian economy of a financial institution deemed by the regulator to be systemically important failing.
Among lenders, Commonwealth Bank added 0.5% to A$77.16, Westpac Bank 0.7% to A$32.14, National Australia Bank 0.5% to A$34.78 and Australia & New Zealand Banking Group 0.6% to A$32.13.
Shares in Australia's only listed health insurance provider, Nib Holdings (NHF), jumped for the second day running, rising 1.6% to $2.54, after a 2.5% lift on Monday, after the Federal Government granted approval for an increase in health premiums next year. Multinational insurers QBE Insurance Group jumped 1.13% to A$11.68 and Insurance Australia Group 1.41% to A$5.75.
Consumer related stocks were sharp higher, on expectation of strong demand pickup in Christmas business, with JB Hi-Fi gained 1.2% to A$21.38 and Harvey Norman finished up 1.6% at A$3.15. Supermarket giant Woolworths inched 0.3% higher to A$33.70, and rival Wesfarmers added 0.6% to A$43.79.
Paper merchant and packaging supplier PaperlinX (PPX) announced it will cut 75 jobs in Germany and 65 in the United Kingdom as it continues to restructure operations. PPX rose 2.3% to close at A$0.044.
Northern Star Resources shares continued their strong run, lifting 6.2% to A$0.77, adding to the 6.6% from Monday after the miner announced the purchase of the Plutonic goldmine in Western Australia for US$25 million (A$27.99 million).
China- Key benchmark indices on the China's share market moved up for second day in row, as investors chased for bottom hunting on calming jitters about liquidity crunch after People Bank of China injected 29 billion yuan of liquidity via open market operation. The Shanghai Composite rose 3.20 points to finish at 2092.91, while the CSI 300 Index added 3.65 points to close at 2288.25.
Sentiments for cyclical stocks buoyed after the People Bank of China holds first open market operation in 3-weeks to ease liquidity crunch panic. The People's Bank of China finally responded to the surge in money market rates by injecting 29 billion yuan on Tuesday via seven-day reverse repurchase agreements. It was the first time the PBOC added funding via its biweekly operations since December 3, though the bank said Friday that it added over 300 billion yuan via short-term liquidity operations at the end of last week.
Market gains were, however, limited amid concerns that 29 billion yuan won't make much of a dent in the cash demands of China's financial institutions while the PBOC's reliance on seven-day maturities highlights its unwillingness to provide longer-term funding. Further, the Chinese New Year holiday falls at the end of January and will create fresh strains on the system -- one-month rates already began responding to the onset of that holiday on Monday.
Among SSE sectors, 6/10 sectors of the SSE index advanced, with telecommunication services sector was best performer in the SSE sectoral indices, adding 1.8%, while healthcare issue was worst performer, falling 0.7%. Information technology sector advanced 1.4%, Consumer discretionary up 0.7%, utilities up 0.6% and industrials up 0.2%.
China's money markets rates declined from prior day on Tuesday, on calming jitters over liquidity crunch in the market after People's Bank of China finally responded to the surge in money market rates by injecting 29 billion yuan via seven-day reverse repurchase agreements. The seven-day repo rate, a gauge of borrowing costs among banks and usually watched as an indicator of liquidity stress, traded at a weighted average of 7.00% by late afternoon compared with 7.50% prior day. The overnight repo, a benchmark measure of interbank funding availability, traded at a weighted average of 4.15% compared with 4.62 % previous day.
Hong Kong, shares in Hong Kong market trekked higher in quiet trade, with financials and some names with strong global exposure gaining ground after a solid advance for U.S. shares overnight. The benchmark Hang Seng Index was provisionally ending 257.99 points higher at 23179.55 in the shortened session.
Among the HK 50 blue chips, 49 rose and one fell. Hang Lung Properties (00101) put on 2.7% to HK$24.45, while COSCO Pacific (01199) dipped 0.19% to HK$10.5, making themselves the largest blue-chip gainer and loser respectively.
Market heavyweights were higher. China Mobile (00941) edged up 0.5% to HK$80.95, while HSBC (00005) gained 1.2% to HK$83.5.
Major mainland banks traded broadly higher in Hong Kong after the People's Bank of China added liquidity to the financial system. Agricultural Bank of China climbed 1.34%, Bank of Communications Co rose 1.9%, and Industrial & Commercial Bank of China added 1.35%. Strong gains for financials also pushed international lenders higher, with HSBC Holdings up 1.15% and Standard Chartered added 2.15%.
Elsewhere, China Everbright gained 5.76% on news it was selling some shares of China Everbright Bank Co, which sank 1.3%, extending losses since its trading debut last week.
Shares of FIH Mobile, part of the Foxconn group, gained 9.69%, after the firm said it would swing to a profit for 2013. The stock had enjoyed strong gains in the previous session on news of a partnership with BlackBerry.
India- A bout of volatility was witnessed as key benchmark indices trimmed losses after hitting fresh intraday low in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was down 22.92 points or 0.11%, up about 60 points from the day's low and off close to 75 points from the day's high.
Among the 30-share Sensex pack, 19 stocks declined and rest of them rose. Tata Power Company (down 2.53%), Sesa Sterlite (down 2.33%) and Wipro (down 1.47%) declined.
ICICI Bank gained 0.29%. ICICI Bank on 21 December 2013 said it has cut its home loan rates for new customers by 15 basis points or 0.15 percentage points, as a part of a special scheme. It will be valid till 31 January 2014. Under the scheme, the bank will offer home loans up to Rs. 75 lakh at an interest rate of 10.25%, while loans above Rs. 75 lakh will be charged 10.50%.
Kirloskar Electric Company fell 0.75%. The company said it has successfully exported a generator duty transformer of 24/30 MVA, 115/38.5/10.5 kV for a hydro-electric project in Song-Giang, Vietnam. The announcement was made after market hours on Monday, 23 December 2013. Separately, Kirloskar Electric Company said that the lay-off at the company's factory situated in Mysore has been extended till 24 January 2014.
Elsewhere in the region, South Korea's KOSPI rose 0.24%. Indonesia's Jakarta Composite index added 0.32%. New Zealand's NZX50 index jumped 0.96%. Singapore's Straits Times index gained 0.36%. Malaysia's KLSE Composite added 0.14%. Taiwan's Taiex index shed 0.1%.
Wednesday, December 18, 2013
External TPAs to stay awhile for state general insurers
Health Insurance TPA of India is expected to begin doing business by April 1, 2014
External third-party administrators (TPAs) will continue to serve state-owned general insurers for the foreseeable future. “While the Health Insurance TPA of India has been set up exclusively to manage health claims of public general insurers, the entire TPA business will not be transferred to them. We will begin by 45-50 per cent business from the in-house TPA and rest will be from external TPAs,” said a senior official from a state-owned general insurer.
Health Insurance TPA of India is expected to begin doing business by April 1, 2014. Improvement in customer service and increasing the efficiency in claims processing is its aim. This common TPA to process health claims has National Insurance Company, New India Assurance Company, United Insurance Company, Oriental Insurance Company and General Insurance Corporation of India as stakeholders. The first four have 23.75 per cent stake each and GIC has five per cent. This TPA will look into health claims and handle a majority of the claims received by these general insurers. The common TPA has been proposed to prohibit large-scale leakages, while settling insurance claims in the health segment. Further, it is intended to process claims of public general insurers in-house, rather than handling by an external agency.
Though initially it was said the in-house TPA would handle all claims, it is now envisaged that only 70-75 per cent of the total business would be shifted. Other TPAs also believe their business won’t be drastically affected. “While some shifts in business will happen, we don’t see the in-house TPA as a threat. In fact, it will complement our services,” said the chief executive of a large external TPA that caters to the government-owned insurance companies. The common TPA is expected to reduce costs for these companies, which pay a commission of approximately six per cent of premiums to TPAs for settling claims.
Currently, most claims in the health segment are handled by external players, which has increased the time taken to settle claims. “During the initial period of setting up of operations, we intend to take assistance from consultants to build a world-class organisation, with robust information technology systems, bringing in some of the best practices from developed markets,” P K Bhagat, managing director of the Health Insurance TPA of India, had told Business Standard earlier. After the in-house TPA begins business operations, the claims handling and processing from external agencies will gradually be transferred to the new entity. The entity has been formed with an authorised capital of Rs 300 crore and paid-up capital of Rs 10 crore.
Source: BS
External third-party administrators (TPAs) will continue to serve state-owned general insurers for the foreseeable future. “While the Health Insurance TPA of India has been set up exclusively to manage health claims of public general insurers, the entire TPA business will not be transferred to them. We will begin by 45-50 per cent business from the in-house TPA and rest will be from external TPAs,” said a senior official from a state-owned general insurer.
Health Insurance TPA of India is expected to begin doing business by April 1, 2014. Improvement in customer service and increasing the efficiency in claims processing is its aim. This common TPA to process health claims has National Insurance Company, New India Assurance Company, United Insurance Company, Oriental Insurance Company and General Insurance Corporation of India as stakeholders. The first four have 23.75 per cent stake each and GIC has five per cent. This TPA will look into health claims and handle a majority of the claims received by these general insurers. The common TPA has been proposed to prohibit large-scale leakages, while settling insurance claims in the health segment. Further, it is intended to process claims of public general insurers in-house, rather than handling by an external agency.
Though initially it was said the in-house TPA would handle all claims, it is now envisaged that only 70-75 per cent of the total business would be shifted. Other TPAs also believe their business won’t be drastically affected. “While some shifts in business will happen, we don’t see the in-house TPA as a threat. In fact, it will complement our services,” said the chief executive of a large external TPA that caters to the government-owned insurance companies. The common TPA is expected to reduce costs for these companies, which pay a commission of approximately six per cent of premiums to TPAs for settling claims.
Currently, most claims in the health segment are handled by external players, which has increased the time taken to settle claims. “During the initial period of setting up of operations, we intend to take assistance from consultants to build a world-class organisation, with robust information technology systems, bringing in some of the best practices from developed markets,” P K Bhagat, managing director of the Health Insurance TPA of India, had told Business Standard earlier. After the in-house TPA begins business operations, the claims handling and processing from external agencies will gradually be transferred to the new entity. The entity has been formed with an authorised capital of Rs 300 crore and paid-up capital of Rs 10 crore.
Source: BS
Your parking slot could decide motor cover cost
While geography and make and model of the car have been prime factors in
determining premium on motor insurance, with increasing availability of
data, insurers are taking into account other factors like your driving
history to the colour of your car or even the parking slot of your
vehicle. In some countries, like the US, the driving history of the
owner is the most important factor determining insurance premium.
"Driving history is a key factor that determines the premium. After all,
it is the driver and not the vehicle that causes accidents.
Therefore, with an experienced and mature driver, the chances of accidents are lower. Moreover, an inexperienced driver is more likely to engage the clutch than an experienced driver, which in turn results in greater wear and tear," said Ajay Bimbhet, MD, Royal Sundaram Alliance Insurance Company. But it’s not just about careful driving.
Even your daily car parking spot (whether closed, open or roadside parking) may have a bearing on the premium. And even the colour of the car could have a bearing on its premium. "Black cars are generally more prone to accidents while white cars are more prone to thefts," Amarnath Ananthanarayanan, CEO & MD, BhartiBSE 0.79 % AXA General Insurance said. These additional factors result in a 10%-15 % addition to the overall premium calculation. As per the regulator, IRDA (Insurance Regulatory and Development Authority) many factors determine the premium . For an own damage cover (that insures the policy holder’s vehicle), different insurance companies charge different premiums for similar coverage . These include vehicle registration details and engine capacity and driver details ranging from age, gender, qualifications , licence validity and previous insurance history, if any.
Car marketers, however, say that motor premium could be much more customized but for the fact that in India, it is controlled by IRDA. Jnaneswar Sen, senior V-P , sales & marketing , Honda Cars India, said: "The profile of the customer and the car model is among 50 or 60-odd parameters used to determine premium in developed markets where insurers do a co-relation analysis based on past data to come up with customized premium. But India is regulated by IRDA so the premium is standardised." Jaideep Devare, MD of Mahindra Insurers Brokers Ltd agrees: "Although insurers are increasingly collating information on consumer behaviour, currently this has not yet been comprehensively incorporated into the process of determining motor premium. We anticipate , however, that it’s just a matter of time before customised premium will become the order of the day, based on variables like colour of the car, driving habits etc. and the ’Pay-As-You-Drive’ concept practised internationally."
Also, as per the IRDA website , in addition to NCB (no claim bonus), there are additional discounts available under own damage premium for membership of Automobile Association of India, vintage cars (which are essentially private cars certified by the Vintage and Classic Car Club of India ). Concessions are also available for specially designed /modified vehicles for the blind, handicapped and mentally challenged persons, which are suitably endorsed.
Source: ET
Therefore, with an experienced and mature driver, the chances of accidents are lower. Moreover, an inexperienced driver is more likely to engage the clutch than an experienced driver, which in turn results in greater wear and tear," said Ajay Bimbhet, MD, Royal Sundaram Alliance Insurance Company. But it’s not just about careful driving.
Even your daily car parking spot (whether closed, open or roadside parking) may have a bearing on the premium. And even the colour of the car could have a bearing on its premium. "Black cars are generally more prone to accidents while white cars are more prone to thefts," Amarnath Ananthanarayanan, CEO & MD, BhartiBSE 0.79 % AXA General Insurance said. These additional factors result in a 10%-15 % addition to the overall premium calculation. As per the regulator, IRDA (Insurance Regulatory and Development Authority) many factors determine the premium . For an own damage cover (that insures the policy holder’s vehicle), different insurance companies charge different premiums for similar coverage . These include vehicle registration details and engine capacity and driver details ranging from age, gender, qualifications , licence validity and previous insurance history, if any.
Car marketers, however, say that motor premium could be much more customized but for the fact that in India, it is controlled by IRDA. Jnaneswar Sen, senior V-P , sales & marketing , Honda Cars India, said: "The profile of the customer and the car model is among 50 or 60-odd parameters used to determine premium in developed markets where insurers do a co-relation analysis based on past data to come up with customized premium. But India is regulated by IRDA so the premium is standardised." Jaideep Devare, MD of Mahindra Insurers Brokers Ltd agrees: "Although insurers are increasingly collating information on consumer behaviour, currently this has not yet been comprehensively incorporated into the process of determining motor premium. We anticipate , however, that it’s just a matter of time before customised premium will become the order of the day, based on variables like colour of the car, driving habits etc. and the ’Pay-As-You-Drive’ concept practised internationally."
Also, as per the IRDA website , in addition to NCB (no claim bonus), there are additional discounts available under own damage premium for membership of Automobile Association of India, vintage cars (which are essentially private cars certified by the Vintage and Classic Car Club of India ). Concessions are also available for specially designed /modified vehicles for the blind, handicapped and mentally challenged persons, which are suitably endorsed.
Source: ET
Reliance Mutual Fund Announces Change In Fundamental Attributes of Reliance Equity Fund
With effect from 22 January 2014
The name of the scheme is renamed as Reliance Focused Large Cap Fund.
Following are the other changes:
Proposed investment objective of the scheme:
The primary investment objective of the scheme is to generate long term capital growth by predominantly investing in an active and concentrated portfolio of equity & equity related instruments upto 25 companies belonging to the top 100 companies by market capitalization and / or leaders in their respective segments. The secondary objective of the scheme is to generate consistent returns by investing in debt & money market securities.
Proposed asset allocation of the scheme:
The scheme would allocate 80% to 100% in equity and equity related instruments with medium to high risk profile and 0% to 20% in Debt and money market instruments with low to medium risk profile.
Existing unitholders will have an option to exit the scheme, without payment of exit load from 23 December 2013 to 21 January 2014.
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