As per a recent press report, Peerless general finance and investment company ltd has sought for a special dispensation of the Reserve Bank of India to allow it to continue its residual Non-Banking Company business for some more time.
Mr.S.K.Roy, Managing Director, Peerless said that the financial products distribution business had suffered a setback due to recent changes in the regulations announced by the IRDA (Insurance Regulatory and Development Authority).
The report also stated that the change has necessitated evolving a new model of distribution and this requires reworking of workflows, IT systems and training. As a result there has been a considerable slowdown in the growth of the business in the second half of the last fiscal.
In view of the setback in distribution business Peerless has sought RBIs special dispensation to allow us to continue RNBC deposit taking business said Mr. Roy, Managing Director Peerless in the annual general meeting. During 2010-2011, the companies first year premium declined by about eight per cent to Rs.133 crore. The renewal business however grew by 52 per cent to Rs.302 crore.