The Indian operations of the US-based financial services giant American Insurance Group (AIG) are sound and so is the case with domestic banks, Finance Minister P. Chidambaram said in New Delhi on Thursday, against the backdrop of the current global financial crisis.
Addressing reporters after a cabinet meeting chaired by Prime Minister Manmohan Singh, the finance minister said while the government was closely watching the global financial markets, the Indian banking system remained strong.
He specifically spoke about AIG's life and non-life insurance businesses in India in a 26:74 ratio with the Tatas and said there was no cause for worry - an opinion shared by the Insurance Regulatory and Development Authority (IRDA).
“Don't compare AIG with Lehman Brothers,” Chidambaram said.
He was referring to the largest bankruptcy filing in the US history by Lehman Brothers, as opposed to funds sought by the AIG to remain afloat, which the US central bank agreed to with $85-billion bridge loan. For full story read AIG's India operations.....
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