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Banking & Bancassurance

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Allianz to acquier Westpac Banking Corp’s general insurance business

Dec 2, 2020 | , , ,

It will also enter into a new 20-year exclusive agreement for the distribution of general insurance products to Westpac customers in an expansion of its existing bancassurance agreement, which has been in place since 2015.Under the new distribution agreement, along with the existing products of motor, caravan and trailer and travel insurance,

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Lakshmi Vilas Bank becomes DBS India; 94-year old bank part of history now

Nov 27, 2020 | , ,

LVB has 566 branches and 973 ATMs spread across 19 states and Union Territories.
It is the second private sector bank after Yes Bank that has run into rough weather this year.

In March, capital-starved Yes Bank was placed under a moratorium. The government rescued Yes Bank by asking State Bank of India (SBI) to infuse Rs 7,250 crore and take 45 per cent stake in the lender.

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Bank operations may be hit by unions’ one-day nationwide strike on Thursday

Nov 25, 2020 | , , ,

“Lok Sabha in its recently held session has passed three new labour enactments by dismantling existing 27 enactments in the name of ‘Ease of Business’, which are purely in the interest of corporates.

“In the process, 75 per cent of workers are being pushed out of the orbits of labour laws since they will have no legal protection under the new enactment,” the AIBEA said in a release.

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S&P sceptical of allowing corporates into Indian banking

Nov 23, 2020 | , , ,

“The working group’s concerns regarding conflict of interest, concentration of economic power, and financial stability in allowing corporates to own banks are potential risks,” S&P Global Ratings said in a note.

A former RBI governor, Raghuram Rajan, and a former deputy governor, Viral Acharya, also criticised the proposal, calling it a “bad” idea.

Even though India needed more banks it was not wise to allow industrial houses into banking as the history of such inter-connected lending showed it could be disastrous, they said.

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Will India’s banking system go from being state-dominated to tycoon-led?

Nov 23, 2020 | , , ,

The regulator mustn’t take the public’s trust for granted. The IL&FS debacle shows little institutional capacity to stop mischief outside the balance sheet of a traditional bank.
The report came just as the regulator solemnised the sale to Singapore’s DBS Group Holdings Ltd. of one such lender, the third failure of a major deposit-taking institution in 15 months. Before that shotgun marriage, the country had 22 universal banks (and 10 so-called small finance banks) in the private sector, with a 30% share of deposits, up from 13% two decades ago. Foreign banks’ low 5% share has remained unchanged. Dominant public-sector banks’ market share is down to 65%, from 82% in 2000.

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RBI committee recommends reshaping domestic banking industry

Nov 20, 2020 | , , ,

In a report made public on Friday, the committee recommended that banking regulations be amended to allow large industrial houses to act as so-called bank promoters, meaning they could take a significant stake in a lender, something the central bank has strongly resisted in the past.
Bajaj Group, Piramal Group and Reliance Industries are well-positioned to expand into banking, said an investment banker who did not wish to be named.

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Govt appoints S.N. Rajeswari as member(Distribution), IRDAI

Nov 18, 2020 | , , ,

“The Appointments Committee of the Cabinet has approved the appointment of Rajeswari, as Whole-Time Member (Distribution) in Insurance Regulatory and Development Authority of India (IRDAI), initially for a period of three years, with effect from the date of assumption of charge of the post, or till attaining the age of sixty-two years, or until further orders, whichever is the earliest, said an order by the Depat of Personnel and Training.on Wdnesday.

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