Peerless has time till Apr ’11 to exit deposit taking business
The Reserve Bank of India (RBI) has offered a one-year extension to Peerless General Finance & Investment Co (PGFI) for exiting the deposit-taking business and migrating to an alternative model.
By ET Bureau |
KOLKATA: The Reserve Bank of India (RBI) has offered a one-year extension to Peerless General Finance & Investment Co (PGFI) for exiting the deposit-taking business and migrating to an alternative model.
The banking regulator has now fixed the cut-off date for April 2011, against April 2010 as mentioned earlier. PGFI chairman Dipankar Basu announced this at the company���s 75th AGM here on Wednesday.
���The company is in the process of withdrawing its deposit-taking business ��� hitherto its core operation ��� in line with RBI���s advice and is taking up new lines of business,��� Mr Basu said at the meeting.
As part of the plan, PGFI has now proposed to set up an asset management company directly, rather than through one of its subsidiaries as was the plan earlier. It has sought Sebi approval for this revised structure.
While the market watchdog is yet to offer its clearance, PGFI has claimed to have made good progress to set up the AMC.
In parallel, it has been ramping up its financial products distribution by adding new products like mutual funds, credit cards in its kitty.
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PGFI reported a 21.7% dip in its profit after tax at Rs 144 crore for 2007-08 compared with Rs 184 crore in the preceding fiscal. Mr Basu attributed this decline to a higher tax outgo compared with the preceding fiscal, following full adjustment of the loss carried forward from the past. Profit before tax, however, rose 8.26% to Rs 236 crore (Rs 218 crore). Its net owned fund improved to Rs 806.21 crore (Rs 693.33 crore).
The company has announced a final dividend of 35% for 2007-08. It had offered an interim dividend of 25% for the same period. During the period under review, it collected deposits to the tune of Rs 953 crore as compared to Rs 1,028 crore in 2006-07. ���PGFI���s subsidiaries are also doing well and on a growth trajectory,��� PGFI managing director SK Roy said.
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