State Bank of Mysore (SBM) will raise Rs 600 crore from rights issue, under which more equity will be offered to the existing shareholders to augment its capital base and meet the Reserve Banks solvency norms. The objects of the issue are to augment our capital base to meet the capital requirements and growth in our assets, primarily our loan and investment portfolio, SBM said in the draft letter of offer filed with market regulator the Securities & Exchange Board of India (Sebi). State Bank of India (SBI) holds over 92% equity in SBM, which is one of its six associate banks. Although the bank, which posted a net profit of Rs 337 crore in 2008-09, meets the prescribed capital adequacy ratio, with increase in business SBM would require additional capital as per the Basel II norms.
Aviva Life launches 9 Ulips
Private sector insurer Aviva Life Insurance on Wednesday launched nine unit-linked plans. The products are in line with the recent Irda guidelines on cap on charges and come with enhanced features and higher internal rate of return (IRRs), Aviva said in a statement. These Ulips are available with 14 new fund options covering savings, retirement, protection and investment needs of all customers, it said. Besides, the company has also introduced thematic funds-infrastructure fund and PSU Fund across select products. Aviva India CEO TR Ramachandran said the new products are another positive step towards making Ulips even more transparent and favourable for customers.
HDFC mkt exposure norms
The countrys largest housing finance firm, HDFC, can now breathe a little easy as it has got two more years from the regulator National Housing Bank to comply with norms to bring down its exposure in capital markets to 40% of its net worth. Earlier, the companys had time till December 31, 2009, to meet the guidelines. Sources said the regulator has recently extended the time period by two years for HDFC to comply with the 40% capital market investment norm. As per the NHB guidelines, the aggregate exposure of a housing finance company to the capital market in all forms (both fund-based and non-fund based) should not exceed 40% of its networth as on March 31 of the previous year.
Manappuram to raise Rs 300 cr
Manappuram General Finance & Leasing Ltd, the Kerala-based non-banking financial company and the countrys only listed gold loan entity, is planning to raise Rs 300 crore through qualified institutional placement (QIP) route as part of its capital augmentation process. The board of directors of the company favoured the QIP route and called for the extra-ordinary general body meeting of the shareholders to be held on January 20, the company said in a filing to BSE.
S&P revises IOC ratings
Standard & Poors Ratings Services has revised its rating outlook on Indian Oil Corporation (IOC) to stable from negative. At the same time, S&P affirmed its BB+ long-term corporate credit rating on the company.