The downturn in the global economy affected most investment bankers and Standard Chartered, with virtually no significant deals achieved in this financial year so far, is no exception. However, the UK-based bank, which has a special focus on Asian markets, is working on two deals that could make it the top deal-maker at the end of the year. The bank is co-advisor to Bharti Airtel in its merger talks with South Africa&rsquo;s MTN Group.

&#39;Rationale for IT deals remains compelling&#39;

Business Standard

With the economic situation improving, merger and acquisitions (M&amp;As) are back on the radar as companies look to gain size. Though companies are still cautious, given the experience over the last few months, DSP Merrill Lynch Managing Director and Head of Investment Banking Saurabh Agrawal tells Abhineet Kumar and Sidhartha the appetite for M&amp;As will improve in the coming days.

&#39;Appetite is coming back for M&A deals&#39;

Investment expert Mark Faber says he&rsquo;s bearish on the world economy.

'Another crisis likely in 3-5 years'

The insurance industry is undergoing a makeover. While the commission structure for unit-linked insurance plans (Ulips) has been revamped, an expert committee has suggested that agency commission be done away with in three years. Similarly, the general insurance industry is coming to terms with the post-tariff era.

'The commission-free structure will kill the insurance industry'

A successful entrepreneur and now an investor, Avnish Bajaj, the managing director of Matrix Partners India, has seen both sides of the investment cycle. In 2004, Bajaj and Suvir Sujjan, co-founder of bazee.com, sold the portal to ebay. Since 2006, Matrix Partner India has invested in nine companies through its $300-million India-dedicated fund. Its largest investment was Rs 100 crore in education firm FIITJEE.

'You have to believe in collective market wisdom'

With an aim to increase credit growth by at least 20 per cent and maintain a capital adequacy ratio of 12 per cent over the next two-three years, Indian Overseas Bank (IOB) has recently submitted a capital requirement plan for nearly Rs 1,400 crore to the government.

'Difficulty in raising money overseas puts pressure on expansion'

Nikhil Puri, managing director of Ambit Corporate Finance, has served with some of the largest investment banks in the US like Arthur Andersen, Lehman Brothers and Bear Stearns. In his 12-year career, he has been instrumental in executing over 45 strategic and financing transactions in the life sciences sector. One of them was representing Betapharm of Germany in its sellout to Dr Reddy&rsquo;s Laboratories.

'Consolidation will happen in the domestic drug industry'

The new pension scheme (NPS), which opened for non-government employees in May, has received a poor response so far. About 650,000 people from the government and over 2,000 from the informal sector have joined the scheme. Its assets under management are to the order of Rs 3,000 crore, of which only Rs 2.5 crore has come from the informal sector.

'We are working on taking NPS online'

IOB bullish on domestic market

Italy-based Pioneer Investments, which signed an asset management joint venture agreement with Bank of Baroda (BoB) last year in a major move to extend its presence in India&rsquo;s mutual fund market, is set to increase its presence in 300 branches of BoB in the next year. Its CEO-Asia, Angus W Stening, puts emphasis on the need for banks to be the main distribution channel after the Securities and Exchange Board of India (Sebi) tweaked norms, in a conversation with Chandan Kishore Kant.

'Banks have not developed the system model to distribute third-party products'

Deutsche Bank has just completed Axis Bank&rsquo;s $720-million fund-raising programme involving sale of shares to institutional investors and a global depository receipt (GDR) issue. It has also helped Indian companies raise $4.5-billion (Rs 21,600 crore) debt and $2.2 billion (Rs 10,560 crore) of equity capital during the January-September period.

'As markets stabilise, public offers will return'

ICICI Lombard, the country&rsquo;s largest private sector general insurance company, is no longer offering steep discounts to acquire business. More than the scale of business, it is focusing on the quality of risk it underwrites. In his first interview since taking over as ICICI Lombard managing director and CEO, Bhargav Dasgupta tells Shilpy Sinha that during the first quarter of 2009-10, the company has seen an increase in profit, while most other players are bleeding.

'We will continue to focus on retail'

Sequoia Capital India has earned the distinction of being one of the earliest venture capital (VC) players to bet on Indian entrepreneurs starting 2000. And, it is among a handful of VC firms that have over $1 billion for investments in India. So far, Sequoia Capital India has raised five funds &mdash; three for early stage and two growth stage. It has invested in over 50 firms, including Firstsource (exited), Applabs and SKS Microfinance. Its recent investments, which include Just Dial and Vasan Healthcare, are from a $725 million growth fund, raised last year, and a $300 million early-stage fund. Sequoia Capital India Managing Director Sandeep Singhal, who along with K P Balaraj, Sumir Chadha and others, manages the India portfolio, speaks to Shivani Shinde about the firm&rsquo;s strategy.

'Valuations have risen, but performance not yet great'

Public sector lender Corporation Bank is looking to expand its footprint by setting up general insurance and mutual fund ventures. Chairman JM Garg spoke to Abhijit Lele and Sidhartha about the bank&rsquo;s strategy.

'Talks are on to set up a non-life venture'

Insurance behemoth Life Insurance Corporation (LIC) of India has made sure that the insurance sector grew in the first quarter despite private insurers posting a steep decline in new business. During the quarter, LIC not only registered a 20 per cent rise in first premium income, but also reversed the trend of falling market share by pocketing 62.5 per cent of the pie. In an interview with Shilpy Sinha and Sidhartha, LIC Managing Director DK MEHROTRA discusses the public sector player&rsquo;s strategy.

'We're targeting Rs 48k-cr new premium income this yr'

Tamil Nadu-based Karur Vysya Bank (KVB) has set itself a target of 0.40 per cent market share and Rs 50,000 crore total business by March 2012. In an interview with T E Narasimhan, P T KUPPUSWAMY, managing director and chief executive officer of the 93-year-old private sector bank, talks about KVB&rsquo;s growth and future plans.

'Wider basket of portfolios helped in riding out recession'

About a month ago, Crisil downgraded infrastructure lender Infrastructure Development Finance Company (IDFC) from AAA to AA+. However, CEO and Managing Director Rajiv Lall tells Shobhana Subramanian that IDFC has sufficient capital and that its business model is robust enough for it to be able to keep pace with the growth in the financial system.

&#39;Our business model remains robust enough&#39;

Iffco Tokio General Insurance is hoping to step up growth by focusing on motor and health insurance, Managing Director and CEO, S Narayan tells Shilpy Sinha.

'We've decided to not accept business at unviable rates'

When Baring Private Equity Partners&rsquo; oldest partner Subbu Subramaniam announced his decision to leave the firm, it created a flutter among portfolio firms and questions were asked about the impact of his exit. But Ajeet Singh Karan, who joined the firm as a partner in June, tells Shilpy Sinha that Baring India is one of the oldest firms and an individual&rsquo;s exit would not impact operations in any manner. The firm has $750 million of assets under management across three funds, including $540 million raised last year. It has made $250 million on an investment of $25-40 million in MphasiS from its first fund, while raising 5 per cent stake in the BPO from open market through its third fund.

'Subbu's exit has not affected operations'

Chennai-based general insurer Royal Sundaram Alliance Insurnace Company has set a growth target of 15 per cent for the current financial year. In 2008-09, the insurer&rsquo;s gross written premium was Rs 805 crore. In an interview with TE Narasimhan, Managing Director Ajay Bimbhet said that the company would rely more on its strengthened distribution network to achieve planned growth and would add 1,200 agents during the year.

'We plan to achieve 15% growth'

DSP Merrill Lynch President Kevan V Watts, who has been in India for around a year, is candid enough to admit that he does not understand India. Watts, who has been busy working out the strategy for DSP Merrill Lynch and Bank of America&rsquo;s combined operations in India, however, says his understanding has improved during his stint in India. In an interview with Sidhartha, he shares his plans for the companies and his impressions of the Indian markets.

'India funds are very crude now'

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'Rationale for IT deals remains compelling'

'Appetite is coming back for M&A deals'