BANKING & FINANCE
Karnataka Bank to sell part of stake in insurance co
Karnataka Bank will sell 8.26 % stake in Universal Sompo General Insurance to Dabur Investment Corporation and Sompo Japan.
Karnataka Bank will sell 8.26 % stake in Universal Sompo General Insurance:
i. This transaction is waiting for approval from Insurance Regulatory and Development Authority of India (IRDAI).
ii. After this transaction, Karnataka Bank’s stake in the general insurance company will reduce to 6 percent from the current 14.26 percent.
iii. Sompo Japan’s stake will increase to 34.61 percent from 28.42 percent and Dabur Investment Corporation’s stake will increase to 12.81 percent from 10.74 percent.
About Universal Sompo General Insurance:
♦ Type – joint venture between Indian Overseas Bank, Karnataka Bank, Allahabad Bank and Dabur Investment Corporation
♦ Foreign Partner – Sompo Japan
BUSINESS & ECONOMY
Inflation to average around 5.1% this fiscal: Report
As per a report by HSBC inflation is set to rise further during Oct 2018 to March 2019 and could average 5.1 per cent for financial year 2018-19.
Inflation projection – HSBC:
i. This year’s projection of 5.1 per cent is higher as compared to 3.6 per cent last year.
ii. Higher oil prices, a weaker rupee, higher minimum support prices (MSPs) for agricultural commodities and more currency in circulation have been identified as factors that will fuel higher inflation.
iii. However, the report has outlined that if appropriate actions are taken now, inflation may move lower in 2019-20, and could even fall back towards the RBI’s 4 per cent target by the second half of 2019-20.
iv. It is to be noted that in April 2018, retail inflation inched up to 4.58 per cent, reversing the declining trend of past three months, while Wholesale Price Index (WPI) inflation also rose to 3.18 per cent on account of spike in fuel prices.