19 June 2004

Sharp plunge for Rupee
Mumbai: The rupee ended at 45.66/68 against the dollar on Friday, which is a five-and-a-half month low. The currency experienced its lowest close since January 2 when it had touched 45.695/705 at the day's end.

G-secs: The benchmark 10-year 7.37 per cent 2014 paper closed 85 paise lower than Thursday's close at Rs 114.20. The 8.07 per cent 2017 paper had a one rupee drop to Rs 119.50 with yield rising to 5.86 per cent. The new 7.38 per cent 2015 paper closed lower at Rs 114.10 which was a Re 1 drop.

Call Rates: were between 4.25-4.50 per cent.

RBI: Ad hoc committees to get more time
Mumbai: The Reserve Bank of India has decided to extend the time given to the ad hoc committees constituted by banks by six months, enabling them to complete their work within one year of their constitution.

In a circular issued to all scheduled commercial banks, the apex bank has also advised banks to associate non-officials in the ad hoc committees constituted by them.

Canara Bank ties up with Western Union
Kochi: Canara Bank has entered into a franchise agreement with Western Union Financial Services for money transfer facility. It enables instantaneous remittance of money from 197 countries to India by NRI's.

Cosmos Co-op Bank profits up 125 per cent
Pune: The Cosmos Co-operative Bank Ltd. has recorded a 125 per cent increase in profit for the year ended March 2004. The net profit has also risen to Rs 70 crore for the fiscal ended March 2004 against Rs 30 crore registered for the year ended March 2003. The book value of the paid-up share of Rs 100 was currently at Rs 950.

For the fiscal ended March 2004, the bank has earned operating profit of Rs 110 crore and CRAR (capital funds to risk assets ratio) was 16.40 per cent as against the minimum specified 9 per cent. It has also brought down the net NPA (non-performing assets) percentage to 2.14 per cent and the target that the bank has set itself for the current fiscal was to bring down the net NPA to zero per cent.

During 2003-04, the bank obtained membership of the Indian Financial Network (INFINET), Negotiated Dealing System (NDS) and Real Time Gross Settlement (RTGS) schemes. The Cosmos Bank has also invested close to Rs 17 crore for creating new facilities at its data centre in Pune, at (Treasury) dealing room in Mumbai as well as at all branches.

Federal Bank to accept premiums for ICICI Prudential
Kochi: ICICI Prudential has tied up with Federal Bank to accept premium from any of its customers in Kerala through the bank's 327 branches across the State.

Currently, customers can make renewal premium payment through cash or the bank's same branch cheques. The facility will soon be extended to include cheques of other banks as well as demand drafts, a press release issued here has said. The facility will be available to all policyholders and there will be no extra charge levied for availing of the service.

18 June 2004

RBI checks rupee slide
Mumbai: The rupee closed nine paise weaker at a month's low of 45.49/51 against the dollar. The currency had ended on Wednesday at 45.4050/4. At an intra day low of 45.55/56 the RBI supplied dollars in the market through state-run banks, which took the rupee to 45.44 levels.

Forward Market: The six-month forward closed at 0.50 per cent (0.40 per cent) and the twelve-month closed at 0.45 per cent (0.42 per cent).

G-secs: The Rs 9,000-crore auction papers were over-subscribed. The cut-off price for the Rs 3,000 crore, 6.13 per cent 2028 paper was at Rs 98.03 and the cut-off yield was at 6.29 per cent. The cut-off price of the Rs 6,000 crore, 7.38 per cent 2015 paper came at Rs 114.80 and a cut off yield of 5.58 per cent.

The 8.07 per cent 2017 paper closed lower at Rs 120.45/50.

South Indian Bank rolls out RTGS operations
Kochi: South Indian Bank Ltd has started live RTGS operations from today. The necessary infrastructure has been set up at the bank's centralised data centre at Kochi. This is the first bank to install the entire RTGS set-up in Kerala. With this new facility, the bank can effect inter-bank payments instantaneously and the beneficiary would get the credit on the same day itself.

RBI approval for IndusInd Bank and ALF merger
Mumbai: Indusind Bank has received the RBI approval for merger with group company, Ashok Leyland Finance Ltd (ALFL) with effect from April 1, 2003. The merger would add Rs 3,000 crore of assets and a client base of 5 lakh to the bank, said the bank in a press note.

IRDA suspends licence of Mass Insurance Brokers
Hyderabad: The Insurance Regulatory and Development Authority (IRDA) has suspended the licence of Mass Insurance Brokers Pvt. Ltd, the Noida-based direct broking (non-life) firm, for its failure to comply with the regulations pertaining to disclosures.

In terms of Regulation 26 of IRDA (Insurance Brokers) Regulations, 2002, every insurance broker should furnish half-yearly unaudited financial statement before October 31 and April 30 each year. The IRDA informed the broker during January about its non-compliance with the above regulation, but with no response forthcoming, during April third week it also served a show-cause notice. The IRDA sources said the broker was directed to acknowledge receipt of the notice and confirm suspension of all insurance broking activities with immediate effect.

17 June 2004

Rupee weakens
Mumbai: The rupee closed at 45.4050/41 on Wednesday, about two paise weaker than Tuesday's close of 45.38/39 against the dollar.

Forwards Market: The six-month forward closed at 0.40 per cent (0.44 per cent) and the twelve-month forward closed at 0.42 per cent (0.43 per cent).

G-secs: The benchmark 8.07 per cent 2017 paper closed at Rs 120.60.

Call Rates: In the range of 4.25 - 4.50 per cent.

PNB net up 31 Per cent
New Delhi: Punjab National Bank (PNB) recorded a net profit of Rs 1,109 crore for the financial year ended March 31, 2004 compared to Rs 842 crore recorded the previous year, a growth of 31.6 per cent

The PNB Group, which includes Punjab National Bank (PNB) and its subsidiaries, registered a net profit of Rs 1,198 crore for 2003-04 compared to Rs 940 crore recorded the previous year, a jump of 27.44 per cent.

The group's operating profit rose by 32.23 per cent to touch Rs 3,288 crore. After the merger of PNB Capital Services with the parent bank, the number of subsidiaries of the bank was reduced to three. All the subsidiaries were profitable during the last fiscal.

Bank of India to pick up stake in Asrec and NCDEX
Kolkata: The Bank of India (BoI) proposes to pick up stakes in two emerging institutions - Asrec, the asset reconstruction company promoted by UTI, and NCDEX, the commodity exchange.

The bank is looking at holding around 13 per cent in the asset reconstruction venture and a smaller holding in the commodity bourse. BoI already holds two per cent in MCX, the other commodity exchange in India. BoIs non-performing assets, which now stand at around 4.5 per cent, are expected to come down to less than three per cent by the year-end.

GOI holdings in US G-secs at $14.6 billion
Bangalore: Indian institutions and the Reserve Bank of India have purchased $2.3 billion worth of US government securities in April in view of the surging foreign exchange reserves.

According to data released by the US Treasury, India's holdings of US government securities were worth $14.6 billion in April this year. This was the highest since December 2003, when holdings were worth $15.5 billion. Among the major investors in US government securities, besides the RBI, are General Insurance Corporation of India, which has global reinsurance operations and foreign branches/subsidiaries of domestic banks, which also have major exposures.

16 June 2004

Rupee down 3 paise
Mumbai: The rupee closed three paise weaker at 45.38/39 in its value against the dollar.

Forwards Market: The six-month forward closed at 0.44 per cent (0.55 per cent) and the twelve-month forward closed at 0.43 per cent (0.51 per cent).

G-secs: The benchmark 8.07 per cent 2017 paper opened at Rs 120 at YTM 5.80 per cent and closed at Rs 119.50 with YTM 5.86 per cent.

Call Rates: were in the range of 4.25 to 4.50 with deals mainly struck at 4.40 levels.

2015 and 2028 stock auction
Mumbai: The Government of India has announced the sale (re-issue) of 7.38 per cent Government stock 2015 for a notified amount of Rs 6,000 crore and 6.13 per cent Government stock 2028 for a notified amount of Rs 3,000 crore. The auctions will be conducted on June 17.

IDBI Bank plans expansion
Chennai: IDBI Bank intends to focus on expanding its network in smaller towns and will use the Rs 130 crore of Tier-II capital it raised through issue of bonds to power the same. The bank says that in the next six months it would be present in 87 cities, as against 69 now.

J&K Bank declares 100 per cent dividend
New Delhi: Jammu & Kashmir Bank Ltd has declared total dividend of 100 per cent for the year ended March 31, 2004.This is inclusive of the interim dividend of 50 per cent announced in February this year. This was announced by the bank's Annual General Meeting held in Srinagar on Tuesday.

UCO Bank to diversify operations
Kolkata: UCO Bank proposes to diversify into risk hedging through interest rate swaps, options and futures, both in foreign currencies and rupees.

The bank's shareholders were also informed at their annual general meeting that the new business initiatives would also see maximisation of fee-based income through the sale of insurance and mutual fund products, extension and expansion of depository services through the bank's wide branch network and garnering fresh corporate agency business.

As of now 86 per cent of the bank's total business is transacted through 845 branches that have been brought under computerisation and the aim was to achieve 100 per cent computerization and introduce Single Window System in all the computerized branches during the current fiscal.

Vijaya Bank on the RTGS grid
Bangalore: Vijaya Bank has gone live with real time gross settlement (RTGS) that enables instant transfer of funds between banks and institutions.

Deutsche Bank net profits up 60 per cent
Mumbai: Deutsche Bank has posted a 60 per cent jump in net profit for the year ended March 2004 to Rs 272.6 crore up from Rs 170.6 crore in the previous year.

Total income of the bank increased 31 per cent to Rs 905.6 crore (Rs 692.8 crore) mostly on account of treasury gains, transaction banks and investment banking activities. Total assets stood at Rs 8,597 crore and total deposits were at Rs 2,533 crore. The bank concentrates on treasury activities, transaction banking, corporate banking and investment banking activities in India. It is mostly a wholesale bank in most of the markets that it is present in.

15 June 2004

Rupee down 20 paise
Mumbai: The rupee closed at 45.35/36 against the dollar on Monday, about 20 paise weaker than Friday's close of 45.1550/1650.

Forwards Market: The six-month forward closed at 0.55 per cent (0.60 per cent) and the twelve-month forward closed at 0.51 per cent (0.52 per cent).

G-Secs: The 8.07 per cent 2017 paper opened at Rs 120.80 and closed at Rs 119.90. The 6.25 per cent 2018 paper opened at Rs 103.85 and closed 85 paise lower. The 7.37 per cent 2014 paper opened at Rs 115.40 and closed at Rs 114.84.

Call Rates: Stable at 4.25-4.50 per cent.

RBI: The hazy world of Financial Conglomerates
Mumbai: An inter-regulatory working group of the RBI, SEBI and IRDA has proposed identifying `financial conglomerates' (FCs) and putting them under regulatory coverage. According to its report a group would be designated as a 'Financial Conglomerate' if it has significant operations in at least two financial market segments, which by way of an example, could be banking and insurance or insurance and asset management.

Some of the groups that may come under the purview are top public sector banks such as State Bank of India, Bank of Baroda and Punjab National Bank and private sector giants such as ICICI Bank and HDFC Bank. Foreign banks such as Citibank and Standard Chartered Bank would also come under the scanner. As per the criteria suggested by the working group, even large corporate clusters such as Reliance, Tata, Birla, Bajaj, Kotak, Sundaram and Sahara groups, which have significant presence in the business of finance, would be seen as FCs. NBFCs and merchant bankers such as Merrill Lynch and GE Capital could also be defined as conglomerates.

According to the report, the emergence of multi-segmental groups and associated cross-linkages has generated several supervisory concerns. There are worries about opaque intra-group transactions and exposures (ITEs) - both financial and non-financial. The report, released for public comment today, says that ITEs could result in capital or income being inappropriately transferred from the regulated entity. Such transactions can adversely affect the solvency, liquidity and profitability of individual entities within a group. The report says that ITEs are also sometimes used as a means of supervisory arbitrage, thereby evading capital or other regulatory requirements altogether.

IBA calls unions for talks
Mumbai: The Indian Banks' Association has called the various bank unions for a discussion on wage revision on July 2. This comes after pre-budget discussions between the Central Trade Unions and the Finance Minister, wherein the Bharatiya Mazdoor Sangh demanded along with other labour issues that the deadlock on wage revision of bank employees be resolved. The last round of discussions on wage revision was held in April.

HSBC net up 32 per cent
Mumbai: The Hong Kong and Shanghai Banking Corporation (HSBC) in India has reported a 32 per cent rise in net profit for the year-ended March 31, 2004. Net profit increased to Rs 197.8 crore from Rs 150.3 crore in the previous year.

According to HSBC (India), the bank's strong performance was driven mainly by business opportunities arising from the growth in the Indian economy as well as from increased emphasis on sales and marketing. The bank could achieve a 32 per cent rise in net profit even after a VRS outgo of Rs 196 crore during the year.
While costs have gone up only 2 per cent, the net operating income has increased 29 per cent to Rs 1,396.6 crore from Rs 1,084 crore. Total assets rose by 21 per cent to Rs 25,356.9 crore (Rs 20,909.7 crore). The bank's net NPA declined to 0.70 per cent during the year from 1.03 per cent in 2002-03.

Syndicate Bank gets ready for second public issue
Manipal: The Syndicate Bank board and the annual general meeting of shareholders of the bank have approved the decision to go in for a second public issue which may come out in about two to three months time.

The issue will be of Rs 50 crore face value. Premium and other aspects will be decided at the time of entering the market. The bank has introduced a "multi-city account" whereby the customer can operate his account in any of the branches having CBS (core banking solution) facility. As many as 150 CBS branches have become fully operational, and another 75 CBS branches will be operational by December 2004.

14 June 2004

Online course for insurance marketing
Hyderabad: The Boston Group (TBG), in collaboration with College of Insurance and Financial Planning and International Institute of Insurance and Finance (IIIF), has launched the first online course for insurance sales professionals, through their dedicated finance portal.

The CLIS or Certificate Course in Life Insurance Salesmanship has been developed on The TBG Intralearn platform and seeks to bridge the widening gap between required knowledge levels and skills of application of the knowledge through professional services. The course involves a ten-step customer-centric approach to a career in insurance. TBG has developed the `Financial Campus India' programme to reach out e-learning technologies to more people.

Muthoot Finance gets F1 rating from Fitch
Kochi: Muthoot Finance Pvt Ltd, a leading non-banking finance company in the state, has received F1 rating for its short-term deposits from the international credit rating agency Fitch Rating India Ltd. It is for the first time that a Kerala-based company has obtained such a rating which is equal to the AAA rating offered to long-term deposits. The Muthoot Group, with a turnover of Rs3, 500 crore and 350 branches throughout the country, is planning to expand its network in this fiscal by adding 60 more branches from the present 350. The daily disbursement in the bank is to the tune of Rs10 crore in nearly 25,000 transactions.