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27 March 2004 Rupee steady
Mumbai: The rupee ended steady at 44.73/74 in its value against the dollar, marginally firmer than Wednesday's close of 44.75.
Forwards- The six-month premium ranged between 0.62 per cent and 0.71 per cent, while the one-year premium ranged between 0.62 per cent and 0.68 per cent.
G-Secs - The 10-year benchmark, 7.37 per cent 2014 paper closed at Rs117.12/15 against its previous close at Rs117.03 (5.17 per cent YTM). The 8.07 per cent 2017 paper closed at Rs125.02 against its previous close at Rs124.84/90.
RBI rationalises overseas borrowings of banks
Mumbai: The Reserve Bank of India has decided to rationalise the existing facilities for commercial banks to borrow overseas. It will also introduce a monitoring and reporting system for the same, starting this fiscal.The central bank now prescribes that banks can borrow up to 25 per cent of their unimpaired tier-I capital as at the close of the previous quarter, or $10 million (or its equivalent), whichever is higher. Any fresh borrowing above this limit shall only be with the prior approval of RBI.
IRDA restores special discount
Bangalore: The Insurance Regulatory and Development Authority (IRDA) has reinstated the five per cent special discount, which it had discontinued in July last year, with rigorous restrictions. The discount would be available only for companies with a paid-up capital of above Rs. 3 crore, without any distinction between private and public sector entities. The regulator's notification clearly indicates that the discount could be extended by the insurers in lieu of agency commission or brokerage and cannot be clubbed along with either of these elements.This special discount would be available only for tariff-driven business, according to the notification.The notification corrects certain anomalies. Since none of the public sector companies were in a position to load commission or brokerage for discounting premia, they were at a disadvantage against the private sector.
FIEO says appreciation of rupee is frightening
New Delhi: The Federation of Indian Export Organisations (FIEO) has described the continuing appreciation of the rupee against the US dollar as "frightening" for exporters as "it has brought down their profit margins to less than 5 per cent."The FIEO claims that the appreciation of the rupee against the dollar threatens to eliminate their competitive edge over other Asian and South Asian countries, particularly China and Vietnam, which have pegged their currencies to the dollar.FIEO has also cautioned that export growth figures for April-June 2004 might fall sharply to a single digit if no remedial measures are initiated immediately.
RBI to issue bonds and T- bills for Rs 35,500 crore
Mumbai: The RBI has released the borrowing calendar for the initial part of the coming fiscal. The bank will issue bonds and treasury bills for Rs 35,500 crore under the market stabilisation scheme in the first quarter of the next fiscal year starting in April. This will be in addition to the Rs 59,000 crore that the Central Government will raise in the first half of the coming fiscal.These bonds will have all the characteristics of g-secs including that of SLR status. These funds when raised will be held in an account maintained by the RBI. This amount can be revised later to include more issuances depending on the liquidity condition, said the RBI.
RBI to scrap one-day repo
Mumbai: The Reserve Bank of India has revised the liquidity adjustment facility (LAF) to do away with the one-day repo and substitute it with 7-day ones. The new scheme will start on March 29. In order to achieve a smooth transition to the revised scheme, the existing overnight variable rate repo auction facility would also be available till April 2, the RBI has said in a notification.
Subsequently, the overnight repo auction will be discontinued and only the 7-day repo auction will be available.Further, in order to enable market participants to meet their prior commitments based on their existing operations, the 14-day 26 March 2004 Rupee steady
Mumbai: The rupee ended steady at 44.73/74 in its value against the dollar, marginally firmer than Wednesday's close of 44.75.
Forwards- The six-month premium ranged between 0.62 per cent and 0.71 per cent, while the one-year premium ranged between 0.62 per cent and 0.68 per cent.
G-Secs - The 10-year benchmark, 7.37 per cent 2014 paper closed at Rs117.12/15 against its previous close at Rs117.03 (5.17 per cent YTM). The 8.07 per cent 2017 paper closed at Rs125.02 against its previous close at Rs124.84/90.
RBI rationalises overseas borrowings of banks
Mumbai: The Reserve Bank of India has decided to rationalise the existing facilities for commercial banks to borrow overseas. It will also introduce a monitoring and reporting system for the same, starting this fiscal.The central bank now prescribes that banks can borrow up to 25 per cent of their unimpaired tier-I capital as at the close of the previous quarter, or $10 million (or its equivalent), whichever is higher. Any fresh borrowing above this limit shall only be with the prior approval of RBI.
IRDA restores special discount
Bangalore: The Insurance Regulatory and Development Authority (IRDA) has reinstated the five per cent special discount, which it had discontinued in July last year, with rigorous restrictions. The discount would be available only for companies with a paid-up capital of above Rs. 3 crore, without any distinction between private and public sector entities. The regulator's notification clearly indicates that the discount could be extended by the insurers in lieu of agency commission or brokerage and cannot be clubbed along with either of these elements.This special discount would be available only for tariff-driven business, according to the notification.The notification corrects certain anomalies. Since none of the public sector companies were in a position to load commission or brokerage for discounting premia, they were at a disadvantage against the private sector.
FIEO says appreciation of rupee is frightening
New Delhi: The Federation of Indian Export Organisations (FIEO) has described the continuing appreciation of the rupee against the US dollar as "frightening" for exporters as "it has brought down their profit margins to less than 5 per cent."The FIEO claims that the appreciation of the rupee against the dollar threatens to eliminate their competitive edge over other Asian and South Asian countries, particularly China and Vietnam, which have pegged their currencies to the dollar.FIEO has also cautioned that export growth figures for April-June 2004 might fall sharply to a single digit if no remedial measures are initiated immediately.
RBI to issue bonds and T- bills for Rs 35,500 crore
Mumbai: The RBI has released the borrowing calendar for the initial part of the coming fiscal. The bank will issue bonds and treasury bills for Rs 35,500 crore under the market stabilisation scheme in the first quarter of the next fiscal year starting in April. This will be in addition to the Rs 59,000 crore that the Central Government will raise in the first half of the coming fiscal.These bonds will have all the characteristics of g-secs including that of SLR status. These funds when raised will be held in an account maintained by the RBI. This amount can be revised later to include more issuances depending on the liquidity condition, said the RBI.
RBI to scrap one-day repo
Mumbai: The Reserve Bank of India has revised the liquidity adjustment facility (LAF) to do away with the one-day repo and substitute it with 7-day ones. The new scheme will start on March 29. In order to achieve a smooth transition to the revised scheme, the existing overnight variable rate repo auction facility would also be available till April 2, the RBI has said in a notification.
Subsequently, the overnight repo auction will be discontinued and only the 7-day repo auction will be available.Further, in order to enable market participants to meet their prior commitments based on their existing operations, the 14-day
25 March 2004 Rupee up 12 paise
Mumbai: The rupee ended at 44.75 against the dollar, up 12 paise from the previous close.
Forwards - The six months forward closed at 0.65 per cent (0.58 per cent) and the one-year forward closed at 0.61 per cent (0.60 per cent).
G- Secs - The 8.07 per cent 2017 paper opened at Rs.123.80 and closed at Rs.123.85. The five-year benchmark, the 11.99 per cent 2009 paper opened at Rs.131.85 and closed lower at Rs.131.81.
Corporation Bank and Bajaj Auto tie up
Mangalore: In a press release, the Corporation Bank has said that the bank has entered into an agreement with Bajaj Auto Ltd to offer finance for the company's two-wheeler products.Those purchasing two-wheelers under the Corp Mobile scheme can get finance up to 90 per cent of the cost of the vehicle at 9 per cent interest for a repayment period up to three years and at 9.5 per cent for repayment period of five years.
Canara Bank starts 'mahila banking' in Kerala
Thiruvananthapuram: Buoyed by the success of its two 'mahila banking' branches at Bangalore and Chennai, the Canara Bank will open its first 'mahila banking' Branch in Kerala at Pattom here on Friday. The fully computerised branch, entirely managed by women staff, will identify areas for financing women entrepreneurs and will cater to their requirements in an integrated manner.
Apart from regular banking functions, the branch will act as a centre for development for women offering facilities such as a small library, credit related counselling, guidance services and information about various schemes for women.
Bank of Bahrain part of BANCS ATM network
Hyderabad: Bank of Bahrain and Kuwait (BBK) has announced that it has joined the BANCS ATM network, a network of 12 banks.In a press release here on Wednesday, BBK said the new arrangement would share a network of 2,000 ATMs across the country. Eight more banks were shortly expected to join the network, thus taking the total ATMs in the network to 2,800. The major banks in the network include UTI Bank, IDBI Bank, Bank of Maharashtra, Centurion Bank, Central Bank of India and Cosmos Bank.
UCO Bank bonds issue oversubscribed
Kolkata: UCO Bank has raised Rs.300 crore from the capital market by way of private placement of unsecured redeemable non-convertible subordinated bonds. The issue wasoversubscribed and closed on Wednesday. The bonds, rated AA by CARE, have a tenor of 111 months bearing a coupon rate of 5.95 per cent payable annually. The bank has the option to retain versubscription of Rs.50 crore.The issue is to augment the bank's tier-II capital, strengthen its capital adequacy and enhance the long-term resources, according to a UCO Bank release.
IDBI Bank bonds raise Rs.130 crore
Mumbai: IDBI Bank has raised Rs 130 crore through non-convertible bonds priced at 6.5 per cent from the corporate bond market to shore up its capital adequacy ratio.The bond issue, with a green-shoe option of Rs.55 crore, was oversubscribed, said a press release from the bank.
Federal Bank takes possession of Ramco building
Chennai: Federal Bank has taken possession of a pledged property in the city. Ramco Super Leathers had borrowed the equivalent of Rs.12.75 crore in 1999 and an additional Rs.3.17 crore in 2002, and had pledged it's building in Chennai as security for the loan. With the company unable to payback, the bank moved against the borrower under the Securitisation Act and has taken formal possession of the building.
24 March 2004 Rupee breaches 45 level
Mumbai: The Indian rupee breached the 45-level mark ending at 44.87, gaining 21 paise in its value against the dollar from the previous close. The rupee has risen by 37 paise in the last three trading days.
Forwards Market - The six months forward contract ended the day at 0.58 per cent (0.58 per cent) and the one-year closed at 0.60 per cent (0.63 per cent).
G - Secs - The 8.07 per cent 2017 paper opened at Rs.123.95 and closed at Rs.123.77. The 10-year benchmark, 7.37 per cent 2014 paper, opened at Rs.117.15 and closed lower at Rs.117.
Steelage: New bank automation products
Chennai: Steelage Industries Ltd plans to launch a safe vault that uses a robot to dispense cash to a bank official A member of the Swedish firm, Gunnnebo Security Group, Steelage Industries would also launch an ATM recycler, which would accept cash from customer, count it and provide a receipt. The machine would also recycle the cash and dispense it to a customer.Steelage Industries, provides physical security products and fire protection devices and systems.
Corporation Bank: Loans for jewellery
Mangalore: Corporation Bank, Tanishq and World Gold Council (WGC) have entered into a tie-up to offer finance scheme to their customers for the purchase of gold jewellery.The arrangement - Tanishq/WGC - Corp Mahila Gold - will be promoted at all Tanishq outlets.
BoI denies knowledge of BCCI frauds
Mumbai: Bank of India (BoI) has denied knowledge of frauds perpetrated by the Bank of Credit and Commerce International (BCCI), and maintains that they were normal inter-bank business transactions.BoI informed the Bombay Stock Exchange that it is appealing against the judgment passed by the London High Court for it to pay around $82 million (around Rs 370 crore) in compensation for fraudulent transactions with the collapsed BCCI.
Barring one transaction on December 18, 1984 of $50 million, the essence of the rest of the transactions was that BCCI placed deposits with Bank of India and the Bank of India lent the same amounts to a certain borrower, Maran Trading, which was nominated by BCCI at a higher margin. The December 18 transaction was between BCCI and Bank of India at the same rate of interest. The credit transactions were also secured by an irrevocable guarantee of BCCI (Overseas) Ltd, BoI has said in a notice to the BSE.The liquidator has contended that the aforesaid transactions of BCCI with Bank of India had no commercial purpose but to enable BCCI to manipulate fraudulently the published results of BCCI Group.The London High Court judge, Justice Nicholas Patten, has ruled that the then chief executive of Bank of India and the bank did not take enough care to verify the commercial purpose of the transaction.
Govt issues special bonds to liquidate oil pool account
Mumbai: The Government has announced the issue of `5 per cent Oil Companies-Government of India Special Bonds, 2009' for liquidating the outstanding claims of oil companies aggregating Rs.348.63 crore against the Oil Pool Account.The special bonds were issued at par to Oil and Natural Gas Corporation for Rs 257.60 crore and Oil India Ltd for Rs.91.03 crore on Tuesday, said a press release. The investment in the special bonds will not be reckoned as an eligible investment for the purpose of statutory liquidity ratio, the release said.The special bonds will be transferable and eligible for market ready forward transactions (repo). The bonds, however, will not be an eligible underlying security for ready forward transactions (repo or reverse repo) with the Reserve Bank of India, the release said. 23 March 2004 Congress unveils six-point charter
New Delhi: Releasing the party's manifesto for the 2004 elections, the Congress President Sonia Gandhi has unveiled a six-point charter, which she said was a "action-oriented transparent programme, unlike the hidden agenda of the NDA Government." Responding to questions, Mrs Gandhi said that the party would also come out with vision documents on economic policy, social empowerment, national security and foreign affairs in greater details in the coming days, as the manifesto should not be too bulky. According to the manifesto, the Congress would prioritise agriculture in resource allocation. The manifesto said public investment in agriculture would be stepped up substantially with focus in the backward and poor regions, covering irrigation, electrification, godowns, marketing, research and extension.The Congress would also examine the feasibility of an Agricultural Stabilisation Fund entailing a system of direct support to farmers, besides systematically removing controls on the free movement of farm commodities and processing of agricultural products and regulations that depress the income of the farmers.The party also pledged to raise public spending in education to at least 6 per cent of GDP with at least half of this amount being spent in primary and secondary schools. It also promises to raise public spending on health to at least 2-3 per cent of GDP with focus on primary healthcare over the next five years and to around 5 per cent of GDP over the next decade.
WEF-CII combine to battle tuberculosis
New Delhi: The World Economic Forum's (WEF) Global Health Initiative along with the Confederation of Indian Industry (CII) has launched a joint initiative to combat tuberculosis. It will be joined in this initiative by corporates such as the Aditya Birla Group, Larsen & Toubro, Lupin Ltd, Modicare Foundation, Novartis India, Reliance Industries, Tata Steel and Triveni Sugar.
Called the new Business Alliance to stop TB, this group will use public and private resources to raise awareness about the disease, increase testing and improve treatment.
Chamber for pharma R&D fund, biotech regulatory panel
New Delhi: The Associated Chambers of Commerce and Industry of India (Assocham) have proposed the formation of a pharmaceutical R&D support fund and the creation of an autonomous Drug Development Promotion Foundation.The fund would provide venture capital financing of high cost but low return R&D. The chamber has recommended that the management of this fund should be through an autonomous and knowledge-centred council. In the note submitted to the Government, the chamber has also made some recommendations regarding the biotechnology industry. The chamber says that there should not be any import duty on capital goods and consumables used by the biotechnology industry and a tax holiday for 10 years should be offered as well. The chamber has proposed the creation of a biotechnology regulatory commission charged with the responsibility of resolving conflicting interests and integrating co-ordinated development in biotechnology and related businesses and ethical/moral issues.
22 March 2004 RBI warns on 'evergreening'
Mumbai: The Reserve Bank of India (RBI) has issued a stern warning to public sector banks against any attempt to 'evergreen' their balance sheets for 2003-04.
According to banking sources, the central bank has said that it is keeping a close tab on such activities, and any bank resorting to 'evergreening' would be taken to task.
Bajaj Allianz will SMS for motor claims alerts
Mumbai: Bajaj Allianz General Insurance intends to use SMS for conveying the status of motor claims. Bajaj Allianz is the first general insurer to launch this facility, whereby SMS is linked to the claims module, enabling the company to update the customer on the status of the claim during the entire period. Bajaj Allianz proposes to roll out the SMS facility for other products shortly.
Bajaj Allianz has developed the software in-house and has integrated the same with the main policy transaction software.Bajaj Allianz has settled claims worth Rs208 crore since inception and has made payments for claims over Rs100 crore in the current fiscal, which the company claims to be the highest payout in the private general insurance sector.
Bank of India to appeal against $82 million claim
Mumbai: Bank of India (BoI) has decided to appeal against the London High Court's judgement asking it to pay $82 million in compensation to the official liquidator for its 'fraudulent' transactions with the collapsed Bank of Credit and Commerce International (BCCI).The judge awarded damages of $43.2 million to Deloitte (the liquidator), which, along with an interest of $ 39 million works out to a little over $82 million.
The judge said Bank of India's London-based manager, K L Samant, knew that BCCI's deposits with the bank were being used to defraud BCCI creditors and that the bank must bear responsibility for the manager's actions.BCCI collapsed in 1991, owing $16 billion in the world's biggest banking fraud. The liquidator is currently pursuing a separate lawsuit of nearly $1.8 billion against the Bank of England, the UK central bank, over its regulatory role in the collapse.
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