All stories by Aathira Varier
Credit cards get a festive boost, spending increases 25% in Sep
Rediff.com1 days agoCredit card spending in September recorded strong growth of 25 per cent year-on-year (Y-o-Y), marking the highest increase in six months. Even as many banks saw higher slippages during the July-September quarter of 2024-25, spending growth exceeded 20 per cent for the first time since February. According to the latest data released by the Reserve Bank of India (RBI), September spending reached Rs 1.76 trillion, compared to Rs 1.42 trillion in the same period a year ago. In August 2024, credit card spending was Rs 1.68 trillion.
'Our higher growth is coming from retail lines'
Rediff.com5 Oct 2024'There is more expansion in the industry happening in retail lines, so we will continue to focus on those lines.'
Banks record a higher deposit growth rate in Q2 FY25 than Q1 FY25
Rediff.com5 Oct 2024Banks recorded a higher growth year-on-year (Y-o-Y) in raising deposits during the second quarter of financial year 2025 (Q2FY25) compared to Q1FY25, owing to intensified efforts to raise liabilities by offering higher rates and innovative schemes.
LIC eyes less than 50% stake in standalone health insurance company
Rediff.com4 Oct 2024State-owned Life Insurance Corporation (LIC) is not keen on a composite license but it is looking to buy less than 50 per cent stake in a standalone health insurance company to enter the health insurance segment such that they have a say in the management of the company, without having to run the company, sources in the know said. "LIC doesn't need a composite licence. "Even if it is introduced, they will not opt for it.
'Looking to expand international business'
Rediff.com25 Sep 2024'It is difficult to write business internationally, without an 'A-' rating. It becomes more expensive.'
LIC earmarks Rs 600 crore for digital shift; to be 'paperless' in 2 years
Rediff.com19 Sep 2024State-run Life Insurance Corporation of India (LIC) has committed Rs 600 crore for its digital transformation journey, Sunder Krishnan, chief risk officer said on Wednesday. The insurance giant is also aiming to become completely "paperless" in two years. "We have hired a large system integrator for more than Rs 400 crore, a consultant for digital transformation for Rs 100 crore, and Rs 100 crore for agency transformation.
Mis-selling of life insurance policies at alarming level: Irdai
Rediff.com4 Sep 2024The alarming level of life insurance policy misselling has caught the attention of policymakers amid efforts by the insurance regulator to boost insurance penetration, a top official from the Insurance Regulatory and Development Authority of India (Irdai) said on Tuesday. According to Satyajit Tripathy, member-distribution at Irdai, while life insurance grievances often relate to product issues, non-life insurance complaints typically concern claim payments and exclusions. Addressing these grievances is essential to increasing insurance penetration, he said.
Pvt insurers ceded ground in rural areas in FY24; Tier-II,-III saw growth
Rediff.com26 Aug 2024The share of life insurance policies sold by top private insurers in the rural areas declined in the financial year 2023-24 (FY24) compared to previous year. SBI Life, HDFC Life, ICICI Prudential Life Insurance -- the top three players from the private sector-- have seen the share of insurance policies sold in rural areas drop in FY24 as compared to the previous financial year. Max Life Insurance's share of rural policies recorded an increase in FY24.
Banks report muted treasury book gains
Rediff.com7 Aug 2024Banks reported muted treasury gains during April-June of FY25 (Q1FY25) following Reserve Bank of India's (RBI's) revised norms on investment portfolio effective from April 1, 2024, despite softening of government bond yields. "Banks have reported muted treasury gains during Q1 of FY25 despite softening of yields across the curve. "The main reason was change in the investment valuation and classification guidelines by the RBI.
Net credit card additions down 48% to 2 mn in Q1
Rediff.com25 Jul 2024The net credit card additions in the banking sector nearly halved to 2 million in the first quarter of the current financial year (Q1FY25) from the previous quarter due to seasonal and regulatory factors. According to the Reserve Bank of India (RBI) data, the net credit card additions during the April-June quarter of FY25 stood at 2 million, 48 per cent lower than 3.9 million in the December-March quarter of FY24.
How Aditya Birla Health Insurance plans to achieve full year profitability by FY26
Rediff.com12 Jul 2024'We want to play the value game for our consumers, which is health and retail will grow faster for us than the group.'
Pvt life insurers hike term policy premium
Rediff.com11 Jul 2024Major private sector life insurance companies, including HDFC Life, ICICI Prudential, Bajaj Allianz and Max Life Insurance, have increased their term insurance premiums by 4-7 per cent in response to moderation in bond yields, inflation concerns, and adjustments in reinsurance rates, according to industry sources privy to the development. Many other insurers are expected to follow suit, the sources said. "We have seen upward revisions happening (in term life insurance rates) across major life insurance companies.
New biz premium rises 23% in Q1
Rediff.com9 Jul 2024Insurance companies reported nearly 23 per cent growth in first year premium in the first quarter of financial year 2024-25, when compared to the same period last year, with market leader LIC leading the charge with 28 per cent growth. According to the data released by the Life Insurance Council, the new business premium (NBP) increased by 22.91 per cent year-on-year (Y-o-Y) to ~89,726.7 crore in Q1FY25 from ~73,004.87 crore in Q1 FY24, reflecting a robust demand for insurance policies in the country.
Deposits grew slower than loans
Rediff.com9 Jul 2024Most lenders that have reported their April-June business update posted slower growth in deposits sequentially as compared to the loan growth in the April-June quarter of 2024-25 (FY25). Current and savings account (CASA) deposits continue to face pressure. Private-sector lenders YES Bank, Bandhan Bank, and RBL Bank saw their deposit growth contract by 0.5 per cent, 1.5 per cent, and 2 per cent, respectively.
Don't sell Ulips as investment products: Irdai to insurance companies
Rediff.com24 Jun 2024The Insurance Regulatory and Development Authority of India (IRDAI) has asked life insurance companies not to advertise unit-linked plans as investment products in a recent circular.
Claims Can't Be Rejected For Missing Docs
Rediff.com13 Jun 2024In its master circular on general insurance products, which takes immediate effect, Irdai specified, 'The customer may be required to submit only those documents directly related to claim settlement.'
Listed private life insurers' FY24 margins fell on rise in Ulip share
Rediff.com11 Jun 2024All the four listed private life insurance companies recorded a drop in value of new business (VNB) margin in the financial year 2023-24 (FY24) as compared to FY23. This is because of a higher share of unit-linked insurance plans (Ulips) in the product mix. VNB is a measure of the economic value of profits expected to emerge from a new business.
Max Life plans to hire 30K agents, open up to 100 offices in FY25
Rediff.com30 May 2024Max Life Insurance plans to hire 30,000 agents and open 50 to 100 new offices in the financial year 2024-25 (FY25) to drive premium growth, said Prashant Tripathy, managing director and chief executive officer of the company. The private insurer's total agent count will rise to 1,30,000 in FY25. It added 47,957 agents in FY24, 54 per cent more than the year before.
Cashless Health Claims To Be Approved In 1 Hour
Rediff.com30 May 2024Health insurance policy-holders will be able to avail a discount on the premium payable if there were no claims made in the previous year, according to the circular released by the regulator.
'Aim is to double individual first-year premiums in 3 yrs'
Rediff.com27 Apr 2024'Currently, our individual first premium would be in the Rs 3,000-Rs 3,200 crore range. We want to take that to about Rs 6,000 crore in three years.'