17 July 2004

Rupee up 15 paise; securities recover
Mumbai: The rupee closed 15 paise stronger on Friday dipping below the Rs46 mark closing at 45.95 per dollar. On Thursday, the domestic currency had closed at 46.1050/1100.

Forward Market: The six-month forward closed at 1.65 per cent (1.84 per cent) and the one-year forward closed at 1.50 per cent (1.61 per cent).

G-Secs: The 10-year benchmark 7.37 per cent 2014 paper closed higher at Rs 110.30. The 11-year benchmark 7.38 per cent 2015 paper closed about five paise higher than its opening at Rs 110.35.

Call rates: Easy at 4.25-4.35 per cent.

LIC premium payments through the ECS
Chennai: The Life Insurance Corporation has announced that it has introduced the facility of paying the premium through the Electronic Clearance Service for its policyholders in Chennai.
The facility, which takes effect on July 17, would allow policyholders' premiums to be automatically deducted from their bank balances. Chennai is the second city where LIC has introduced the ECS facility. Earlier, LIC had introduced the same in Mumbai.

Central Bank pays Rs 35 cr-dividend
New Delhi: The Central Bank of India has paid a dividend of Rs 35 crore to the Union Government for 2003-04.

16 July 2004

Rupee loses another 10 against the dollar
Mumbai: The rupee ended at 46.1050/1100 against the dollar on Thursday, weaker by 10 paise from Wednesday's close of 46.00/01.

Forward Market: The six-month forward closing at 1.84 per cent (1.80 per cent) and the twelve-month closing at 1.61 per cent (1.60 per cent).

G-Secs: Prices tumbled by over 80 paise, pushing up the 10-year benchmark yield to 5.99 per cent on fears of a high inflation figure. The 11-year benchmark 7.38 per cent 2015 paper closed at Rs 110.30. The 10-year benchmark 7.37 per cent 2014 paper closed at Rs. 110.30.

Call Rates: Easy at 4.40-4.50 per cent.

Commodity Exchange members to get PNB guarantees
Mumbai: The Punjab National Bank (PNB) has issued guidelines to its offices and branches to issue bank guarantees in lieu of security deposit to the members of National Multi-Commodity Exchange of India (NMCE), according to an exchange release. This facility would now enable the NMCE members to increase their exposure limits on the exchange. The bank guarantees are expected to increase liquidity in the commodity market and result in greater trading volumes in the long run. NMCE had recorded a turnover of Rs 47,372 crore in the financial year ending March 31 - an average of Rs 158 crore per day.

Bank of India launches gold card for exporters
Mumbai: The Bank of India has launched the 'Exporters Gold Card' in order to make credit easily available to exporters. Exporters with a good track record, satisfactory financials and cash management can avail of the 'gold card'. The card offers a range of benefits, including competitive terms, pricing in interest and service charges, approval of limits for a longer tenure, assessment of working capital limits up to Rs 5 crore at 20 per cent of the average yearly turnover estimated for the next three years, according to bank officials. Cardholders will be given priority for allocation of foreign currency funds and a privileged customer status at BoI branches.

Bank unions call for strike on August 24
Coimbatore: The United Forum of Bank Unions (UFBU) has given a call to its members to strike work on August 24. The UFBU, which met under the Presidentship of Mr S.D.

Dhopeswarkar, President, AIBEA (All India Bank Employees Association) in Mumbai recently, said that an agitation at this juncture has become inevitable because of the adamant attitude of the IBA.

Reliance Info and ICICI Bank tie up
Mumbai: Reliance Infocomm and ICICI Bank have introduced an interactive mobile banking service through which the bank's customers can get a range of banking services free of charge. The services are available through R-World, Reliance's information and entertainment service. Customers can get mini-statements, make requests for cheque book, view presented bills, and also pay bills by direct debit through bank account.

15 July 2004

Rupee at 46 to the dollar
Mumbai: The Domestic currency closed at its lowest level in the week on Wednesday, closing at 46.00/01 against the dollar.

Forward Market: The six-month forward ended at 1.80 per cent (1.51 per cent) and the one-year forward ended at 1.60 per cent (1.43 per cent).

G-Secs: The 11-year benchmark, 7.38 per cent 2015 paper dipped to Rs 111.00/05 levels. The auction of the 4.83 per cent 2006 paper on Wednesday was fully subscribed with the cut off yield at 5.05 per cent.

Call Rates: Stable at 4.25 - 4.50 per cent.

Govt stock auction fully subscribed
Mumbai: The cut-off price of the Rs 5,000-crore government stock auction for the 4.83 per cent 2006 paper conducted on Wednesday came at Rs 99.56 (5.0488 per cent). Of the 202 bids received, 65 were accepted with partial allotment of 55.48 per cent. In the Rs 2,000-crore 91-day Treasury bill auction, out of 53 bids received, 33 were accepted with partial allotment at 49.45 per cent. The cut-off price for the Treasury bills came to Rs 98.89.

HDFC Bank net rises
Mumbai: HDFC Bank has registered a 30 per cent jump in net profit for the first quarter ended June 30, 2004, at Rs 139.97 crore, up from Rs 107.28 crore in the same period the previous year. Net interest income of the bank increased over 43 per cent to Rs 398.79 crore (Rs 277.69 crore). Other income fell 18 per cent to Rs 108.04 crore (Rs 132.19 crore).

With the fall in prices of Government securities, the bank had to provide Rs 65 crore from its profits towards valuation losses of its portfolio. The Government securities market saw a 0.7 per cent rise in yields in the first quarter and HDFC Bank provided for the loss in valuation of its portfolio from the profit and loss account.
Total income increased 14 per cent to Rs 810.6 crore (Rs 709.26 crore) and total expenditure increased 11 per cent to Rs 534.59 crore (Rs 481.33 crore).

As on June 30, 2004, total deposits were Rs 31,406 crores, an increase of 34.6 per cent from Rs 23,340 crores in June 2003.
Portfolio quality as on June 30, 2004 remained healthy with net non-performing assets at 0.2 per cent of advances and the capital adequacy ratio was at 11 per cent, said a press note from the bank.

UTI Bank net up 35 per cent
Mumbai: UTI Bank has posted a 35 per cent jump in net profit for the first quarter ended June 30, 2004, at Rs 70.67 crore up from Rs 52.18 crore in the corresponding period of the previous year. The total income dipped to Rs 535.49 crore (Rs 544.20 crore) and total expenditure increased to Rs 389.80 crore (Rs 355.44 crore). Net NPAs to net customer assets was at 1.16 per cent. The bank has ended the first quarter of the current financial year with a capital adequacy ratio of 11.11 per cent, said a release from the bank.

14 July 2004

Rupee sheds 18 paise
Mumbai: The rupee ended at 45.86/88 on Tuesday, weaker by about 18 paise.

Forward Market: The six-month forward closed at 1.51 per cent (1.40 per cent) while the one-year forward closed at 1.43 per cent (1.30 per cent).

G-Secs: The market saw better volumes today though still lower than the average traded volumes. The most actively traded paper was the 11-year benchmark 7.38 per cent 2015 paper which shot up by over 40 paise to close at Rs 111.40 at the yield of 5.96 per cent. The ten-year benchmark 7.37 per cent 2014 paper closed at Rs 111.52.

RBI to divest stake in SBI, Nabard and NHB
New Delhi: The Ministry of Finance is considering taking over the entire stake holding of the Reserve Bank of India in the State Bank of India (SBI), National Bank for Agriculture and Rural Development (Nabard) and the National Housing Bank (NHB).
In separate replies in the Rajya Sabha on the three institutions, the Minister of State for Finance, S.S. Palanimanickam, has said that the RBI proposal for the transfer of its entire shareholding in these institutions is currently under consideration.

While RBI holds 59.73 per cent of shares in SBI, the entire paid up capital of NHB is held by it. In Nabard, the RBI has infused capital of Rs 1,450 crore, while the Government has subscribed to the remaining Rs 550 crore. The Government has said that the transfer of stake is being done on the basis of the recommendation of the Narasimham Committee which had said that it would be appropriate for the Reserve Bank of India not to own the institutions it regulates.

Indian and Corporation Bank to share ATM network
Chennai: Indian Bank and Corporation Bank have entered into an agreement to share their ATM infrastructure. Indian Bank has signed similar agreements with Andhra Bank and State Bank of India. The bank is already a part of two network consortia, Mitr and CastTree.

PNB lowers FCNR rates
New Delhi: Punjab National Bank has lowered interest rates on Foreign Currency Non-Residents (Banks) scheme for dollar, pound and euro deposits with effect from Tuesday. The rate of interest on dollar deposits has been revised from 2.13 per cent to 2 per cent for maturities of one year to less than two years; from 2.92 per cent to 2.65 per cent for two years to less than three years, and from 3.45 per cent to 3.14 per cent for maturities of three years only. For pound deposits, it has been revised from 5.12 pc to 4.99 pct for maturities of one year to less than two years; from 5.20 pc to 5.05 pc for two years to less than three years, and from 5.27 pc to 5.12 pc for maturities of three years only.

ABN-Amro net up 33 pc to Rs 195 cr
Mumbai: ABN-Amro N.V (India) has posted a 33 per cent jump in net profit at Rs 194.8 crore for the year-ended March 2004 - up from Rs 146.06 crore in the previous year. Total income increased to Rs 1,140 crore (Rs 995 crore) and total expenditure was at Rs 946 crore (Rs 849 crore).

Half the bank's assets are retail and the break up is expected to stabilise at 65:35 in favour of retail as against corporate. The deposits are largely low-cost with 75 per cent of it being current and savings accounts. Net NPA as a percentage of net assets stood at 0.88 per cent (1.59 per cent). Capital adequacy ratio increased to 13.48 per cent (12.57 per cent) with profit retention in the country. The bank has been retaining its profits for the past 15 years.

13 July 2004

Bonds market too in the shadow of the Tax
Mumbai: The rupee ended the day at 45.68/70 against the dollar on Monday, up by around three paise from its previous close of 45.66/67 on Friday.

Forwards Market: The six-month forward closed at 1.40 per cent (1.16 per cent) while the twelve-month forward closed at 1.30 per cent (1.23 per cent).

G-Secs: The ten-year benchmark 7.37 per cent 2014 paper closed at a yield of 5.88 per cent against the previous yield of 5.82 per cent.

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

IBA draws up new farm schemes
Mumbai: The Indian Banks' Association has drawn up three schemes to improve credit flow to the farm sector The schemes include one time settlement for small and marginal farmers . The scheme will cover all loan accounts sanctioned to small and marginal farmers, which are in default as on June 24, 2004. Another scheme is for relief to farmers affected by natural calamities for at least two successive years in the last five years in notified districts.

The scheme covers distressed category of farmers who had suffered production and income losses on account of natural calamities such as drought/flood or other calamities which might have occurred in the districts for two or more successive years during the past five years, provided such districts had been declared as "calamity affected" by the State Government concerned.

The third scheme is for providing relief to farmers in arrears.
The scheme covers investment credit and production loans to farmers who have defaulted in meeting repayment commitments due to factors beyond their control and are not eligible for relief under the scheme for providing relief to farmers in distress as per guidelines issued by RBI, said the IBA. Another measure is to mitigate acute distress faced by farmers due to heavy burden of debt from non-institutional lenders. The indebtedness intended to be taken over from non-institutional lenders may be included as part of assessment of limits under Kisan Credit Card Scheme, said the IBA.

IndusInd Bank reports Rs.262 crore net profit
New Delhi: IndusInd Bank has said that it plans to acquire a bank or a NBFC in the near future. The bank has reported a net profit of Rs 262.07 crore for 2003-04 against Rs 90.17 crore in the previous year, The bank has announced a total dividend of 22.5 per cent for its shareholders for 2003-04 that includes a special dividend of five per cent given earlier on the occasion of 10th anniversary of the bank. After merging Ashok Leyland Finance with Rs 4,200 crore assets, the bank's total asset base has gone up to Rs 15,000 crore. The bank has cut down its net NPAs to 2.72 per cent of net advances last fiscal as compared to as high as 4.25 per cent in 2002-03.

Govt to sell Rs 5,000 crore stock under MSS
Mumbai: The Government of India has announced the sale (re-issue) of '4.83 per cent Government Stock 2006' under the Market Stabilisation Scheme for a notified amount of Rs.5, 000 crore through a price-based auction using multiple price auction method. The Reserve Bank of India will conduct the auction on Wednesday, July 14. Up to 5 per cent of the notified amount of the sale of the stock will be allotted to eligible individuals and institutions as per the scheme for non-competitive bidding facility in the auction of government securities. Bids should be submitted to the RBI office on July 14. The auction is not being offered for underwriting by the primary dealers in government securities.

12 July 2004

Forex reserves halt downslide
Mumbai: After dipping by over $500 million in the previous week, the forex reserves of the country have climbed by $671 million to touch $120.078 billion, up from $119.407 billion for the week ended July 2.

The accretion in the reserves is primarily on account of foreign currency assets, which increased by $589 million to $114.718 billion. The gold position of the central bank increased by $83 million to $4.057 billion in the week, according to the RBI's latest statistics. About Rs 67,000 crore is still parked in repos by banks with the RBI during the week ended July 2.

SBI launches mobile ATM
Mumbai: The State Bank of India has launched its first mobile ATM in Goa. SBI plans to introduce five mobile ATM vans this year.