Axis Bank will merge its wholly-owned investment banking arm with Enam Securities, acquiring the company for Rs. 2,067 crore. This deal will help Enam face competition from larger global investment banks and help Axis Bank grow its fee-based income. India's foreign exchange reserves declined by $1.9 billion due to a drop in foreign currency assets. Additionally, McKinsey reported that Indian banks will need to increase their total assets five-fold by 2015 to meet funding needs, and the largest five emerging Asian economies will account for nearly half of total Asian banking assets by 2014. Furthermore, IRDA will formulate merger and acquisition guidelines for non-life insurers to encourage consolidation, and SBI appointed G.

1. NEWS !!!!
Prepared By:
Pallavi Saggar
MBA-2A

2. 1. Axis Bank - Enam: Regulating
financial conglomerates
 Axis Bank to merge a wholly-owned investment
banking arm with a major chunk of financial
services firm, Enam Securities .
 The all-share deal that gives Enam shareholders
5.7 shares of Axis for every Enam share values the
company at 2,067 crore (around $450 million).
 For Enam, faced with the challenge of low
brokerages and tough competition from global
investment banks that are more savvy , especially
in areas like fund-raising in global capital markets,
the move makes eminent sense.

3. Contd….
 Enam is only the latest of the domestic brokerages
to be wooed.
 For Axis Bank, the merger should provide scope to
grow its low-risk fee-based income.

4. 2. India's forex reserves down $1.9 bn to
$298.31 bn.
 The country's foreign exchange reserves slid by
$1.9-billion to $298.31-billion on the back of a
heavy decline in foreign currency.
 Foreign currency assets expressed in US dollar
terms include the effect of appreciation or
depreciation of the non-US currencies, such as the
euro, pound and yen, held in the reserves.
 The country's gold reserves remained static for the
second consecutive week at $21.67-billion.

5. 3. Banks have to grow 5-fold to meet
funds needs by 2015: McKinsey
 The report, prepared by McKinsey & Company, says the
No 1 bank in the country (without naming State Bank)
will have to scale up its asset size to $800-900 billion by
2015 from the current size of $200 billion (March 2009),
while the No 10 will have grow to $90-100 billion by
then.
 The report also says that by 2014, the five largest
emerging Asian economies-China, India, Indonesia,
Malaysia and Thailand-will alone account for 45 per cent
of the banking assets and over 60 per cent of market
capitalisation of all Asian banks, including those of the
developed Asia -- Japan, Korea, Taiwan, Singapore
Hong Kong and Australia.

6. 4. Irda to come up with M&A guidelines
for non-life insurers.
 The Insurance Regulatory Authority of India (Irda)
will formulate guidelines for mergers and
acquisitions (M&A) for non-life insurance
companies, Irda Chairman J Harinarayan.
 At present, the Insurance Act provides for the M&A
pertaining to life insurance companies only.
 There are 22 life insurance companies and 21 non-
life insurance companies operating in the country.
The proposed M & A norms are expected to spur
consolidation leading to fewer but stronger players
in the insurance sector.

7. 5. SBI appoints G D Nadaf as Director
 State Bank of India (SBI) has nominated G D Nadaf
as officer-employee director on the central board of
the bank.
 Nadaf, who joined the bank as cashier in 1972, is
serving as deputy manager in Bangalore.
 He is also General Secretary of the All India State
Bank Officers’ Federation (AISBOF). He will be in
the SBI board for the period of three years.

8. Thank You….