Home   >>    Insurance   >>    Life Insurance   >>     Overview

Finance ministry recomments cost cuts at banks and insurers

Without obstructing operation efficiency, finance minister has asked banks and insurance companies to cut their operations cost by 10%.

Apnainsurance.com Research Bureau

04 Aug 2008

Without obstructing operation efficiency, finance minister has asked banks and insurance companies to cut their operations cost by 10%. As reported by The Economic Times, a finance ministry official said, "The prudent measures would help banks tackle a scenario where high interest rates and low margins are impacting profits." The finance ministry further added, "The government has asked the institutions to take cost-cutting measures as their declining profits would lead to reduced dividend payments to the government, resulting in more pressure on the fiscal situation."

The ministry has suggested measures to banks and insurance companies like restricting seminars and conference in five star hotels, to put a cap on foreign tours in order reduce cost. It has also asked them to take part only in exhibitions related to trade and business activities.
The aim behind containing the cost of operation is to ensure adequate resources, for meeting the objective of development in the social and infrastructure sectors, and other priority schemes.



Get Life Insurance Proposals
Upto 5 providers will offer you alternative proposals based on Oct 2016 premiums
?  
 
 

Prefered Insurance Cos:
  •  Any 5
  •  IDBI FORTIS
  •  ING VYSYA
  •  FUTURE GEN
  •  AVIVA
  •  SHRIRAM
  •  DLF
  •  CANARA HSBC
  •  SAHARA
  •  STAR UNION
  •  AEGON RELIGARE
  •  HDFC LIFE

 
 
 
 
 

I authorize the website and its partner providers to call or SMS me in connection with my application & agree to the Privacy Policy and Terms of use