26 June 2004

Rupee volatile
Mumbai: The rupee gained 7 paise against the dollar on Friday to close at 45.83/84. On Thursday, the rupee had closed at 45.90/92.

Forwards Market: The six-month forward ended at 1.45 per cent (1.08 per cent), while the twelve-month forward closed at 1.20 per cent (0.95 per cent).

G-secs: The YTM on the 10-year benchmark 7.37 percent 2014 went to its highest levels in the past one year touching 5.89 per cent before settling at 5.84 per cent. The 8.07 per cent 2017 paper closed at Rs 116.35/50. The 7.38 per cent 2015 paper closed at Rs 111.40

Lord Krishna Bank with Arabian Exchange Company tie up
Kochi: Lord Krishna Bank has announced that it has tied up with the Arabian Exchange Company in Doha, to facilitate remittances from Qatar to all its branches in India. This will enable expatriate Indians in Qatar to remit money back home quickly and at the lowest cost possible.

As per the terms of the agreement signed with Lord Krishna Bank, the exchange company would also issue demand drafts in Indian rupees payable at Lord Krishna Bank branches, as well as receive credit against remittances made in Qatar within 24 hours. The bank already has such agreements with Al Ansari Exchange and UAE Exchange in Abu Dhabi and Wall Street and Federal Exchange in Dubai.

Deutsche Bank gets Finance Asia magazine award
Mumbai: The Deutsche Bank has been named the "Best Foreign Investment Bank in India" in the annual Finance Asia Magazine awards announced in Hong Kong. This award, said the bank in a press release, comes as a result of significant investment by Deutsche Bank to India in recent years.

25 June 2004

Rupee down 18 paise
Mumbai: The rupee lost 18 paise against the dollar on Thursday to close at 45.90/92. On Wednesday, the domestic currency had closed at 45.72/77.

Forward Market: The six-month forward closed at 1.08/10 per cent (1.40 per cent). The one-year forward closed at 0.95 per cent (0.91/93 per cent).

G-secs: The benchmark 7.37 per cent 2014 paper closed 85 paise lower at Rs 111.75 at an yield of 5.77/78 per cent. The 8.07 per cent 2017 paper closed about a rupee lower at Rs 117.00/10.

RBI offices closed on June 30
Mumbai: The Reserve Bank of India offices in Mumbai and Navi Mumbai will remain closed on Wednesday, June 30, for public transaction, due to annual closing of its accounts, stated a press release issued by the RBI.

RBI: New NPA norms for crop loans
Mumbai: The RBI has decided that with effect from September 30, 2004 the recently announced revised NPA recognition norms will be applicable to all direct agricultural advances. As per the new norms as stated in the recent credit policy, loan granted for short duration crops will be treated as NPA, if the installment of principal or interest thereon remains overdue for two crop seasons.

A loan granted for long duration crops will be treated as NPA, if the installment of principal or interest thereon remains overdue for one crop season, said a release from the central bank. RBI has urged banks to ensure that while granting loans and advances, realistic repayment schedules may be fixed on the basis of cash flows/fluidity with the borrowers.

LIC Housing net profit down 6.4 per cent
Mumbai: LIC Housing Finance's net profit has come down by 6.4 per cent for the year-ended March 31, 2004. Net profit for the period fell to Rs 167.47 crore, from Rs 178.97 crore the previous year. NPAs have come down to 2.37 per cent from 3.22 per cent the previous year. Total income for the year fell to Rs 985 crore, from Rs 1,013 crore. The board of directors has recommended a dividend of 50 per cent.

TMB net profit up 26 per cent
Madurai: Tamilnad Mercantile Bank (TMB) has made an operating profit of Rs 169.89 crore for the year 2003-04, registering an increase of 25.18 per cent over the previous year. Its net profit stood at Rs 68 crore, recording an increase of 26.52 per cent. The bank has decided to declare a dividend of 100 per cent and a special dividend of Rs 15 per share. According to the bank release advances to the export sector have been Rs 204 crore, at 9.65 per cent of the total net bank credit.

BoB to open office in Guangzhou
Mumbai: Bank of Baroda will open its representative office in Guangzhou in China on June 28. Guangzhou is on the coast of the South China Sea and 182 km away from Hong Kong. The bank is also going to open a representative office in Kuala Lumpur, and a fully-owned subsidiary in Tanzania in the next few months.

24 June 2004

Rupee recovers ground
Mumbai: The rupee was up 53 paise from the eleven-month low of 46.25/26, as it closed at 45.72/77 against the dollar.

Forwards Market: The six-month forward closed at 1.15 per cent (1.40 per cent), while the one-year forward closed at 0.91/93 per cent (1.10 per cent).

G-secs: The 8.07 per cent 2017 paper closed higher at Rs 117.75/ 118.

Call rates: were stable at 4.25-4.50 per cent.

RBI modifies requirements for NPA provisioning
Mumbai: Banks will have to introduce graded higher provisioning based on the age of non-performing assets that have been in the doubtful category for more than three years effective from March 31, 2005, according to a circular issued by the RBI. At present, banks are required to make provisions on NPAs on a graded scale based on the age of the NPA.

'Woman First Plan' from Birla Sun Life
Mumbai: BIRLA Sun Life Insurance has launched a unit-linked insurance plan for women called "Woman First Plan." The scheme is designed to offer high growth potential along with a safety net in the form of a three per cent guarantee on the premiums, net of the policy fees and charges, said a press release. The plan also has added features such as cover for women specific critical illness along with the accidental death and dismemberment benefit, the release said.

GTB allowed time to declare results
Hyderabad: Global Trust Bank Ltd (GTB) has sought and obtained an extension of time from the Reserve Bank of India for publishing the accounts for the financial year 2003-04 in terms of Section 31 of the Banking Regulation Act, 1949.

In a communiqué to stock exchanges on Wednesday, the bank said the extension was obtained in view of certain important and positive developments relating to the bank's capital raising programme. According to GTB, the apex bank has granted time up to August 31 to the bank for publication of the accounts. The financial results for the first quarter of current fiscal ended June 30, 2004 would also be furnished by August 31, the bank said.

23 June 2004

Rupee at a 11 month low
Mumbai: While the rupee tumbled to an 11-month low, ending at 46.24/26 against the dollar, 35 paise weaker as against its previous close. The domestic currency had closed at 45.90/93 on Monday.

Forwards Market: The six-month forward closed at 1.40 per cent (0.70 per cent) and the one-year at 1.10 per cent (0.61 per cent).

G-secs: The 7.37 per cent 2014 stock ended 38 paise lower at Rs 112.80/85, while the 7.38 per cent 2015 stock dipped to Rs 112.15/25 from Rs 113.30 yesterday. Actively traded 8.07 per cent 2017 bond plunged to Rs 117.70/75 from Rs 118.70/80 on Monday.

Call Rates: Easy between 4.25-4.50 per cent.

RBI tightens investment norms for RNBCs
Mumbai: The Reserve Bank of India (RBI) has tightened the investment norms for residuary non-banking companies (RNBCs).
The directed investments of RNBCs will be increased from 80 per cent to 90 per cent on and from April 1, 2005 and to 100 per cent on and from April 1, 2006. Accordingly, discretionary investments (presently lower of 20 per cent of the deposits or 10 times the net-owned funds) would be restricted to 10 per cent of the deposits or equal to net-owned funds on and from April 1, 2005 and there would be no such discretion on and from April 1, 2006.

At present, RNBCs are required to invest 80 per cent of the aggregate liabilities to depositors in the manner directed by the RBI. The new norms on directed investments will be effective from July 1, 2004, while the reduction in discretionary investment will begin from April 1, 2005. The existing investments may continue to be held till their sale/ maturity but are not permitted to be renewed/ rolled over, said the central bank in a press release.

Platinum increases holding in Union Bank
Mumbai: The bank has informed the National Stock Exchange that it had received intimation from Platinum Asset Management Ltd, as trustee for Platinum Asset Management Trust, of having acquired 6,00,000 shares constituting 0.13 per cent of the total paid-up capital of Union Bank of India. The fund has acquired the stake through market purchases. The shareholding of Platinum Asset Management is now 2,32,53,716 shares or 5.05 per cent of the total paid-up capital of Union Bank.

Tata AIG targets 45 per cent growth in premium income
New Delhi: Tata AIG General Insurance, the country's third-largest private insurance player, is targeting a 45 per cent increase in premium income at over Rs 500 crore this fiscal. The company, which started operations in January 2001, is expected to break even by 2005-06.

The company has a capital base of Rs 125 crore, which is sufficient to meet Insurance Regulatory Development Authority's (IRDA) solvency norms. The two promoters (Tatas and AIG) are committed to hike the capital "as and when required," he said.

StanChart net down to Rs 596 crore
Mumbai: The Standard Chartered Bank has registered a 30 per cent drop in net profit for the year ended March 2004 to Rs 596 crore, down from Rs 848 crore in the previous year due to the hefty fine of Rs 157 crore that the bank had been slapped with relating to the 1992 securities scam.

Despite the drop in profits, the bank is still the highest profit making foreign bank in the country, with Citibank the closest competitor clocking a net profit of Rs 571 crore for March 2004. The bank also saw its tax payout increase to Rs 255 crore this year. The bank's total income rose 27 per cent to Rs 2,152 crore up from Rs 1,694 crore. The profits have come from both growth in retail lending activities, fee income and treasury income.
The bank's net NPA ratio is healthy at 0.52 per cent.

22 June 2004

Rupee at seven month low
Mumbai: The rupee ended at 45.90/93, its weakest against the greenback in seven months, as against its closing on Friday at 45.66/68.

G-secs: The ten-year benchmark, 7.37 per cent 2014 paper closed at Rs 113.26, a drop of about 90 paise from the opening levels at Rs 114.15. The 8.07 per cent 2017 paper fell more than a rupee to close at Rs 118.50.

Exim Bank appoints managers for its Euro bonds
New Delhi: Export-Import Bank of India has appointed Citigroup and Deutsche Bank to sell its five-year bonds in the overseas market. Citigroup and Deutsche Bank have been mandated as joint lead managers and joint book runners for the transaction.Exim Bank chairman T C Venkat Subramanian had earlier said the bank intends to raise over Rs 1,300 crore through the bond issue.The issue would be part of Exim Bank's Rs 7,000 crore borrowing programme for this fiscal.

Indian Bank to raise Rs 300 crore tier-II capital
Hyderabad: Indian Bank will issue subordinated bonds under tier-II capital for raising Rs 300 crore including a green shoe option of Rs 100-crore. Announcing this at a press conference the bank said that the tier-II issue was planned with an anticipation of substantial growth in business volumes.

The tier-II bonds issue, the first one from Indian Bank, consists of two tranches of 84 months with a coupon rate of 6.15 per cent and 120 months with a rate of 6.25 per cent. The issue opens on June 23 and closes on July 7 or earlier in case of full subscription.
The bank has brought down the net NPAs to 2.71 per cent (Rs 383 crore) from 6.15 per cent in the previous fiscal.

Single premium scheme from Om Kotak Mahindra
Mumbai: Om Kotak Mahindra Life Insurance has launched 'Kotak Easy Growth plan' (KEGP) - a single premium unit linked plan - designed to combine the benefits of insurance and investment. KEGP is being targeted at the high and middle income segments and offers four investment options - money market fund, bond fund, balanced fund and growth fund - for customers to allocate their money in one or any combination of funds, depending on the risk-return appetite.

"In the long run, return from equity is expected to outperform the returns from other asset classes. Interest rates on fixed return instruments have declined. We are currently in a low inflation environment. Real interest rate is barely 2 per cent. For capital formation, investors will have to look at equity in their portfolio," said Mr Shivaji Dam, Managing Director, Om Kotak Mahindra Life Insurance, addressing a press conference. The product offers two options for life cover. Under the high cover option, the customer gets an insurance cover five times the single premium paid in the event of death

New BoB product for business customers
Hyderabad: The Bank of Baroda (BoB) has announced the test launch of the 'Baroda Premium Current Account' (BPCA).

According to the bank, individuals, partnership companies, limited companies and large corporate houses excluding banks and financial institutions can become BPCA holders. After a study conducted in various Indian cities, the bank has zeroed in on four cities including Hyderabad for the test launch of BPCA product. The others are Ludhiana, Indore and Ahmedabad.

The product has two variants - BPCA with a minimum average quarterly balance (AQB) of Rs 1 lakh and BPCA-Privilege with a minimum AQB of Rs 3 lakh. Both the customers would be entitled to free monthly statements, use of any branch banking, telephone banking and Internet banking facilities and BoB Card (two partners or directors in case of companies). They can also enjoy discount of 25 per cent on dematerialisation and custodial charges (up to two directors or partners in case of companies and authorised Managing members in case of other bodies). In addition, the BPCA-Privilege holders can enjoy free demand draft, bankers cheque and collection of outstanding cheques.

21 June 2004

Forex Reserves dip second week in a row
Mumbai: The country's foreign currency reserves were down by $331 million to $114.07 billion, according to the Reserve Bank of India's weekly statistical supplement. The foreign exchange reserves of the country also declined for the second time in a row by $333 million for the week ended June 11.

The forex reserves fell during the period under review from $119.67 billion to 119.34 billion. Last week the reserves fell by $142 million. The decline in the foreign currency assets includes the effect of changes in the value of non-US currencies such as the euro, Sterling and Yen held in reserves.

RBI: No loans outstanding to government
Mumbai: The government had no loans outstanding with the Reserve Bank of India (RBI) on June 11 compared with Rs 378 crore on June 4, the central bank said in its weekly statistical supplement released on Saturday. Loans and advances to state governments rose to Rs 3107 crore in the week to June 11 from Rs 1837 crore a week earlier, the RBI said.