Financial Daily from THE HINDU group of publications
Friday, Sep 19, 2003
Financial Daily from THE HINDU group of publications Friday, Sep 19, 2003 |
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Money & Banking
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Life Insurance LIC in pact with SBI Caps Our Bureau
Mr S.B.Mathur
Mumbai , Sept. 18 LIFE Insurance Corporation of India (LIC) has entered into a strategic alliance with SBI Caps to avail of the merchant banker's investment banking and project advisory services. LIC and SBI Caps signed a memorandum of understanding to this effect on Wednesday, whereby the latter will render services to the insurer, in the areas of structured finance, private placement of fixed income securities, public issues, broking services, sales and distribution. Both entities will also exchange economic and securities research. Addressing a press conference here, Mr. S.B. Mathur, Chairman, LIC, said, LIC and SBI Caps would provide mutual support in the areas covered by the MoU, with LIC considering suitable investment and loan proposals sourced by SBI Caps wherever feasible. The merchant banker had already been advising LIC on private placement issues etc. Since these days liquidity was aplenty and opportunities were few, LIC thought it prudent to seek support on investment and projects advisory issues, he said. Mr D.P. Roy, Chairman, SBI Caps said, investments in the infrastructure sector was slowly picking up, particularly rural infrastructure. There are emerging opportunities for institutions like LIC to play a role in investing in these areas. "Infrastructure investments are always long drawn. Commercial banks have problems of asset liability mismatches, as they can't give long-term assets with short-term liabilities. The only long-term lenders were development financial institutions but that option has more or less faded out. Institutions like LIC can participate in infrastructure investments'', Mr Roy said.
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