SBI Life planning to raise up to Rs 500 cr from IMD redemption

Mumbai, Nov 16 | Updated: Nov 17 2005, 05:30am hrs
The SBI Life Insurance Company Ltd is targeting to mop up Rs 200-Rs 500 crore through its Dhana Vriddhi scheme for the India Millennium Deposits (IMD) which would mature in December 2005. This was informed by S Krishnamurthy, MD & CEO, SBI Life Insurance.

Speaking at the sidelines of a press meeting held here on Tuesday, Mr Krishnamurthy said, We are targeting to garner Rs 200-500 crore for the IMD which redeems in December. The rate of return can range from 5.86-7% on gross single premium depending on the tax exemption and rebate on premium. We also expect to retain 1-2% of the total redemption amount. The total redemption amount is approximately Rs 35,000 crore. It has already garnered Rs 6 crore toward this.

Mr Krishnamurthy has also informed that the firm has targeted Rs 1,000 crore as premium income for the current financial year as against Rs 600 crore in 2004-2005.

It has collected Rs 305 crore premium income for the first six months of the current financial year.

Road To Redemption
SBI Life expects to retain 1-2% of the total redemption amount
Rate of return can range from 5.86-7% on gross single premium depending on the tax exemption and rebate on premium
The total IMD redemption amount is approximately Rs 35,000 crore