The second largest foreign lender HSBC India said it has issued its first yuan-denominated documentary credit in the country for a Mumbai-based pharma firm, without naming the borrower. A documentary credit (DC) is a commitment issued by a bank to pay a supplier within a prescribed time limit as long as the clearly defined terms and conditions are met, and acts as a shield for traders against cash flow issues. HSBC India Managing Director and commercial banking head Sandeep Uppal said, Domestic businesses have recognised the enormous growth potential of doing business with suppliers in China. As trade between the two economic powerhouses gathers pace, domestic businesses that use DCs in yuan can expect higher discounts from their Chinese suppliers who no longer need to hedge against the dollar.
Catholic Syrian to up authorised capital
Catholic Syrian Bank has decided to raise funds to increase its authorised capital from R100 crore to R120 crore. The AGM of the bank held on Friday authorised the board to make further issue of capital by floating public issue, rights issue or QIP. The meeting also declared a dividend of 15% to the shareholders.
Insurance council, GDV ink MoC
Life Insurance Council, the industry body of all life insurance companies in the country, said it has signed a Memorandum of Cooperation (MoC) with the German Insurance Association (GDV). Our association with GDV would be beneficial to the life insurance industry in India. We hope to adopt best practices in our respective countries, Life Insurance Council Secretary General V Manickam said in a release. The MoC would act as a platform to exchange information and discuss matters of common interest pertaining to the insurance industry. The industry bodies will conduct employee exchange programmes, through which representatives from Life Insurance Council and GDV will visit each others country.