Kolkata, Aug. 19: To offset the slowdown in its financial products distribution business, 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 Residuary Non-Banking Company (RNBC) business for some more time. Mr S. K. Roy, Managing Director, Peerless, said that the financial products distribution business had suffered a set back due to recent changes in regulations announced by the IRDA (Insurance Regulatory and Development Authority). “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 last fiscal. “In view of this setback in distribution business we have sought RBI's special dispensation to allow us to continue RNBC deposit taking business,” he said during his speech at the company's 78th annual general meeting here on Friday. During 2010-11, the company's 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.
HBL
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