The government may infuse Rs 1,500 cr into the State Bank of India in the next fiscal year via a rights issue, a finance ministry source said. The money will be allocated in the budget for the 2011-12. SBI has asked for capital infusion of Rs 25,000 cr for the next two fiscal years.
RBI seeks comments on Malegam report
The Reserve Bank invited public comments on Malegam panel report which suggested among other things things capping interest rate at 24% for loans extended by micro finance institutions. The committee also suggested that small loans cannot exceed Rs 25,000 and creating of a separate category of non-banking financial companies for MFIs.
Insurance sector growth to stabilise, says Irda
Following the fall in Ulips due the recently announced stricter guidelines, Irda feels that there would be slowdown in its sales and will impact the overall insurance sectors growth during the current financial year 2010-11. J Hari Narayan, chairman, IRDA, said that the growth of Ulips was hit significantly due to tightening of the regulatory framework. The insurance industry grew by about 23% during the financial year 2009-10.
Cholamandalam to raise Rs 450 crore
The board of directors of $3.03 billion Murugappa group company Cholamandalam Investment and Finance Company Ltd (Chola) has approved the raising of Rs 450 crore as tier II capital. Chola has posted a 147% growth in its profit before tax (PBT) at Rs 28.13 crore in the third quarter as against Rs 11.37 crore in the same quarter last fiscal.