The government has begun the process for selecting chiefs of at least eight public sector banks, including the country’s biggest lender SBI, where the top position would fall vacant in the next fiscal.
Kicking off a process that might take at least 4-5 months, the finance ministry has begun collecting personal background records and profiles of all the executive directors
currently working with various public sector banks, sources said. The CMDs (chairman and MDs) would be selected from a pool created of all the executive directors at public sector banks, they said, adding that in some cases the chief of a particular bank might be transferred to another bank.
Sebi may act on share sale norms
Market regulator Sebi is considering a greater oversight over share sale in listed firms, especially small and mid-size companies, through large open market deals and qualified institutional placement route. Besides tightening the disclosure norms for such deals, the market watchdog is considering enhancing its oversight on developments preceding and following these transactions to keep a watch on share price manipulation attempts by promoters or other market intermediaries, a senior official said. The move follows probes by the regulator into the recent cases of insider trading and the initial findings from the ongoing investigation into the bribe for loan scam.
Capital infusion on LIC’s agenda
Unfazed by controversy surrounding its housing finance arm, India’s largest insurer Life Insurance Corporation (LIC) plans to pump in about `61,000 crore in the equity market during this fiscal, said LIC managing director, Mr Thomas Mathew. Increase in exposure to equity markets — secondary or primary market — would depend on market conditions, he said. Last year, the total profit by the churning portfolio was `9,400 crore full year,” he said. However, during this year till mid-October, LIC has earned `12,000 crore, he added. During the first seven months of the current fiscal, LIC has breached the `50,000-crore mark.
SCI charts plans for expansion
State-run Shipping Corporation of India (SCI) is looking to spend around $3 billion on expansion activities over the next three years. “We have chalked out our growth plans and will invest $ 1 billion every year for the next three years,” SCI chairman and MD, Mr S. Hajara, said. The capex will be financed through a mix of internal accruals and debt, Mr Hajara said, adding that the company's recently concluded follow-on public offer was over-subscribed five times and mopped up around `1,200 crore. The offer received bids for 41.64 crore shares, though just 8.46 crore shares were on offer. The issue closed on Friday, December 3.