sbi life insurance
NEW DELHI -- India's federal postal department Tuesday signed pacts with two fund managers to help manage cash that it will collect daily as premiums from its life insurance customers.
The funds to be managed will be split equally between state-run UTI Asset Management Co. Ltd. and SBI Fund Management Pvt. Ltd., a government statement said.
"The net accretion to the postal life insurance and rural postal life insurance will now be invested as per the Insurance Regulatory and Development Authority guidelines," the statement said.
The postal department expects to collect between 70 million rupees ($1.47 million) and 100 million rupees a day in fresh premiums, a senior department official, who didn't want to be named, told Dow Jones Newswires.
"It (the premium collection) is likely to pick up at the close of the financial year," the official added.
India's fiscal year runs from April through March.
Up to 15% of funds collected in premiums can be invested in equities, UTI Asset Management Chairman U.K. Sinha told Dow Jones Newswires.
Earlier, the postal department used to invest the entire amount in government securities.
The postal department has also sought government approval to convert 200 billion rupees worth of bonds into tradable securities, the department official said. He didn't elaborate.
NEW DELHI -- India's federal postal department Tuesday signed pacts with two fund managers to help manage cash that it will collect daily as premiums from its life insurance customers.
The funds to be managed will be split equally between state-run UTI Asset Management Co. Ltd. and SBI Fund Management Pvt. Ltd., a government statement said.
"The net accretion to the postal life insurance and rural postal life insurance will now be invested as per the Insurance Regulatory and Development Authority guidelines," the statement said.
The postal department expects to collect between 70 million rupees ($1.47 million) and 100 million rupees a day in fresh premiums, a senior department official, who didn't want to be named, told Dow Jones Newswires.
"It (the premium collection) is likely to pick up at the close of the financial year," the official added.
India's fiscal year runs from April through March.
Up to 15% of funds collected in premiums can be invested in equities, UTI Asset Management Chairman U.K. Sinha told Dow Jones Newswires.
Earlier, the postal department used to invest the entire amount in government securities.
The postal department has also sought government approval to convert 200 billion rupees worth of bonds into tradable securities, the department official said. He didn't elaborate.
