24 april 2004
rupee
firms up 10 paise
mumbai: the rupee closed at 44.05 per dollar on
friday, with a stronger closing of around 10 paise as
compared to its previous closing of 44.1550.
forwards market- the one-month premia was at - 2.95 per
cent (- 3.49 per cent), the six-month at - 0.65 per cent
(- 0.77 per cent) and the one-year at - 0.32 per cent
(- 0.39 per cent).
g-secs- the 8.07 per cent 2017 traded between rs 125.22
and rs 125.27, while the 7.46 per cent 2017 traded between
rs 120.14 and rs 120.18.
call rates remained at 4.50 per cent levels in the inter-bank
market.
rbi:
no dividends fiesta from banks
mumbai: the reserve bank of india (rbi) on friday
decided that only healthy scheduled commercial banks would
have a free hand in declaring dividends while the weaker
ones would need permission from the regulator, which would
be given on a case-to-case basis. accordingly, banks that
have a net npa of more than 3 per cent of net assets will
no longer be able to declare dividends without the prior
permission of the rbi, according to a press release.
the revised guidelines on dividends payable by banks also prescribe that only banks wishing to pay out dividends must have a capital adequacy ratio of at least 11 per cent for the preceding two completed years and the accounting year for which it proposes. further, they must have made adequate provisions for impairment of assets and staff retirement benefits, transfer of profits to statutory reserves and investment fluctuation reserve.
additionally,
the apex bank has said it should not also have placed
any explicit restrictions on the bank for declaration
of dividends.
with regards to the quantum of dividends, the proposed
dividend should be payable out of the current year's profit.
banks such as state bank of india, punjab national bank,
bank of baroda, bank of india, canara bank and, among
the private banks, icici bank, united western bank, federal
bank and global trust bank have npa ratios above the 3-per
cent mark.
