24 July 2004

Rupee arrives at the one-year low point
Mumbai: The domestic currency ended at 46.32/34 against the dollar - a level last witnessed on July 16, 2003.

Call rates: Substantially lower at about 2-2.50 per cent

G-Secs: The 7.38 per cent 2015 per cent paper closed lower at Rs.110.45. The 10-year benchmark touched a yield of 5.97 per cent before closing at 5.95 per cent.

States to raise Rs.8,600 crore loans
Mumbai: Twenty State Governments will sell an amount of about Rs.8,600 crore on July 28. The States have offered to sell on tap 6.35 per cent Development Loan 2013 (II Series), according to a press release from the RBI. Nineteen States will tap the market for an aggregate amount of about Rs 8,000 crore as the second tranche of an additional market borrowing on account of debt swap scheme in the current financial year. Besides, three States - Madhya Pradesh, Nagaland and Punjab - will raise an aggregate amount of Rs 638.45 crore as part of their normal market borrowings.

Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal are the States that will tap the market. The States will have an option to retain up to 20 per cent of excess subscription, on account of debt swap scheme in the current financial year. The sale will be held at the respective regional offices of RBI and at Mumbai (for all the 20 States).

Government to issue UTI bonds for Rs.362 crore
New Delhi: The Government has announced the issue of 6.1 per cent UTI Bonds, 2011 for a notified amount of Rs 362 crore. An official statement said that the UTI Bonds will be issued at par on July 23 to the Administrator of Specified Undertakings of UTI for meeting their liabilities arising on account of shortfall in assured return schemes. The investment in the UTI Bonds will not be reckoned as an eligible investment for purpose of Statutory Liquidity Ratio (SLR), the statement adds. The UTI Bonds will be transferable and eligible for market ready forward transaction (repo). The bonds, however, will not be an eligible underlying security for ready forward transactions (repo/reverse repo) with the Reserve Bank of India.

ICICI Bank Q1 net up 26 per cent
Mumbai: The ICICI Bank Ltd has recorded a 26 per cent rise in net profit at Rs.430.74 crore for the first quarter ended June 30 against a net profit of Rs 340.2 crore in the corresponding previous period. Retail assets grew 62 per cent at Rs 36,583 crore (Rs 22,535 crore). The bank has received approval from the Reserve Bank of India to pay 75 per cent dividend for the year ended March 31, 2004. Total income for the quarter under review dropped to Rs 2,853.49 crore from (Rs 2,938.55 crore), a release said. Total expenditure declined to Rs 2,297.65 crore (Rs 2,434.11 crore), while total deposits increased 24 per cent to Rs 66,780 crore (Rs 53,853 crore). During the period, the bank repaid Rs 1,800 crore of the erstwhile ICICI's liabilities. Non-performing assets constituted 2.7 per cent of customer assets against 4.9 per cent in the corresponding previous period.

State Bank of Mysore Q1 net at Rs.53 crore
Bangalore: The State Bank of Mysore has earned a net profit of Rs 53 crore in the first quarter of the current financial year, a 17 per cent increase over the corresponding period of last year. Total income for the first quarter was Rs 365.79 crore (Rs 323.49 crore). Total expenditure in the first quarter was Rs 247.74 crore (Rs 229.73 crore). Operating profit in the first quarter went up to Rs 118.05 crore (Rs 94 crore). But provisions for non-performing assets also increased in this quarter to Rs 36.41 crore from Rs 24 crore. The gross NPAs also came down to 7.5 per cent in the first quarter, from 11.08 per cent in the last fiscal.

23 July 2004

Rupee sheds another 13 paise
Mumbai: The rupee closed at 46.26/27 against the dollar on Thursday, weaker by 13 paise from Wednesday's close of 46.13/14.

Forward Market: The six-month forward closed at 2.05 per cent (1.96 per cent) and the twelve-month forward ended at 1.72 per cent (1.75 pc).

G-Secs: Yield to maturity on the 10-year benchmark rose by over 10 basis points to close at 5.96 per cent after opening at 5.84 per cent. "

Call Rates: were easy at 4.00-4.25 per cent.

Corporation Bank Q1 net declines
New Delhi: Corporation Bank has recorded a net profit at Rs 105.51 crore during the quarter ended June 30, a 17 per cent decline over the net of Rs 126.43 crore in the corresponding quarter in the previous year. The bank's gross profit increased by 12.41 per cent to Rs 227.86 crore during the quarter. The gross non-performing assets (NPAs) of the bank declined to 5.01 per cent while net NPAs were at 1.8 per cent. The bank aims to cut down its NPA to below 1.5 per cent this fiscal. The loan advances of the bank increased by 26.30 per cent to Rs 14,487 crore till June 2004.

UCO Bank Q1 net up 4.4 per cent
New Delhi: UCO Bank has announced a 4.4 per cent growth in net profit to Rs 142 crore during the quarter-ended June 30, 2004 against Rs 136 crore during the corresponding period in the previous fiscal. The total business of the bank was up by 25 per cent at Rs 56,934 crore up to June 2004. Deposits were up by 23 per cent at Rs 37,053 crore at the end of first quarter of this fiscal while loan advances grew by 30 per cent to Rs 19,881 crore.
The bank's net NPA has come down to 3.35 per cent from 3.8 per cent a year ago.

SBT Q1 net up by Rs.94 crore
Thiruvananthapuram: The State Bank of Travancore (SBT) has registered 84-per cent increase in net profit during the first quarter ended June 30, over the same period last year. The net profit for the quarter was Rs 94.01 crore as against Rs 51.22 crore in the previous year, according to a statement from the bank. The net interest income increased by Rs 45.44 crore to touch Rs 203.52 crore. The capital adequacy ratio improved from 11.36 per cent as on March 31, to 12.34 per cent at the end of the quarter. The net non-performing assets declined from 1.39 per cent as at the end of the previous year to 1.06 per cent at the end of the quarter.

South Indian Bank Q1 net declines
Kochi: The Thrissur-based South Indian Bank has clocked a net profit of Rs 18.44 crore for the first quarter of the current fiscal, against Rs 22.60 crore recorded for the corresponding previous period. The operating profit stood at Rs 39.18 crore (Rs 52.09 crore). The bank's net worth has increased from Rs 343.58 crore to Rs 413.33 crore. It was able to record a capital adequacy level of 12.09 per cent, while the RBI-stipulated level is nine per cent. While the gross NPAs were reduced from 10.05 per cent to 7.51 per cent, the net NPAs were pruned from 6.20 per cent to 4.53 per cent, a bank release said. The bank was able to notch a growth in business of 18.3 per cent to Rs 12,055 crore (Rs 10,194 crore).

22 July 2004

Rupee slips lower
Mumbai: The rupee closed marginally weaker at 46.13/14 against the greenback on Wednesday, as against Tuesday's close of 46.10/12.

Forward Market: The six-month forward closed at 1.96 per cent and the one-year forward closed at 1.60 per cent (1.75 per cent).

G-Secs: The market witnessed a marked improvement in transaction volumes, which were higher at Rs.2,500 crore to Rs.3,000 crore. The 11-year benchmark, 7.38 per cent 2015 paper closed at Rs 111.25. The yield on 10-year benchmark 7.37 per cent 2014 paper closed lower at 5.83 per cent against its previous levels of 5.91 per cent.

Call rates: Steady at 4.25 per cent to 4.50 per cent.

IDBI Bank net up 64 per cent
Mumbai: IDBI Bank has recorded a 64 per cent jump in its net profit for the first quarter of this financial year at Rs 36.7 crore against Rs 22.3 crore in the corresponding period in the previous year. The rise in net profit was due to a rise in total income which grew to Rs 139.7 crore in the first quarter ended June 30, (Rs 109.4 crore), according to a release. The total deposits of the bank grew to Rs 11,023 crore (Rs 6,236 crore). The bank's net NPA to net advances were near zero. The provision cover rose to 92.1 per cent (88.3 per cent).

Rs 20 crore Q1 loss for ING Vysya Bank
Bangalore: ING Vysya Bank has reported a loss of Rs 20.04 crore in the first quarter of this fiscal, against the profit of Rs 33 crore in the first quarter of the last financial year. The bank has reported a loss despite making an operating profit of Rs 50 crore in the first quarter this year. The bank has reported a lower total income of Rs 297 crore (Rs 340 crore). Interest income was higher at Rs 246.11 crore (Rs 233.86 crore). The bank more than doubled the provisions on non-performing assets to Rs 84.34 crore during the first quarter this year.

Laxmi Vilas Bank deploys Newton
Chennai: Newton, the core banking solution from ICICI Infotech, has gone live in three branches of Lakshmi Vilas Bank in Chennai. Newton allows customers to use any branch as an ATM (automated teller machine). Customers of the three branches can use any one of them to transact business, including withdrawal of cash. According to the bank Newton would be implemented in 25 branches across the country by March 2005.

Newton has also integrated the bank's existing front-end software (Lakshmi Business Solution 2001), thereby protecting the earlier IT investment made by the bank. Newton's deployment will enable the bank to increase its product offerings and expand customer base (the bank has about 1.3 million customers). Newton, enables the bank to shift to a centralised solution instead of having multiple solutions for various products, including credit cards and deposits. The solution also empowers multiple delivery channels such as call centres, the Internet, kiosks and online ATMs.

ICRA cuts HMT bond rating
Bangalore: ICRA has cut its rating assigned to HMT Ltd's Rs 159-crore bond issue to LBB (under rating watch) following a delay in interest payment that was due in April, an ICRA statement said. The agency had earlier assigned LAAA(SO) rating (under rating watch with negative implications).

21 July 2004

Rupee weakens further
Mumbai: The rupee closed marginally weaker on Tuesday at 46.10/12 a dollar, as against Monday's closing levels at 46.09.

Forward Market: The one-year forward closed softer at 1.75 per cent (1.90 per cent).

G-Secs: The 10-year benchmark, the 7.37 per cent 2014 paper closed lower at Rs. 111.18. The 8.07 per cent 2017 paper remained unchanged at Rs 116.35 per cent.

Call rates: remained at around 4.25 per cent in the inter-bank market.

Canara Bank Q1 net up 32 per cent
Bangalore: Canara Bank has registered a 32-per cent net profit growth in the first quarter of this financial year at Rs 336.44 crore, up from Rs 255.85 crore posted in the corresponding period of the previous year. Total income in Q1 was Rs 2,185 crore, up from Rs 2,063.22 crore during the corresponding quarter of the last financial year. The bank also made lower provisions this year of Rs 127 crore (Rs 148 crore) on non-performing assets. As a result, the operating profits went up to Rs 644.64 crore (Rs 497.10 crore). The bank, Mr Shastri said, planned to reach a business level of Rs 1,55,000 crore by March 2005 of which at least Rs 56,000 crore was expected to come from advances.

LogicaCMG anti-money laundering tool for ING Vysya
Bangalore: LogicaCMG has said that it has won a contract for the implementation of its anti-money laundering (AML) solution at ING Vysya Bank in Bangalore. The solution enables the bank to monitor customers' profiles and 'suspicious' financial transaction activity, through advanced statistical analysis and transaction monitoring. It also provides extensive case management and reporting facilities, said a company press release.

20 July 2004

Rupee weaker
Mumbai: The rupee closed at 46.09 against the dollar on Monday, weaker by about 14 paise against Friday's close of 45.95.

Forward Market: The six-month forward closing at 1.90 per cent (1.65 per cent) and the twelve-month closing at 1.55 per cent (1.50 per cent). The 7.38 per cent 2015 paper closed at Rs 111.20. The yield for the ten-year benchmark moved higher to 5.87 per cent from 5.83 per cent.

Call Rates: Easy at 4.00-4.25 per cent.

City Union Bank online with RTGS
Coimbatore: The City Union Bank Ltd has joined the real time gross settlement grid, with the system going live on July 16.

HDFC Q1 net up 22 per cent
Mumbai: The Housing Development Finance Corporation has reported a 21.9 per cent increase in net profit, year on year, for the quarter ended June 30, 2004. The company reported a net profit of Rs 204.62 crore for the quarter against Rs 167.76 crore in the corresponding quarter the previous year. Income from operations amounted to Rs 761.17 crore (Rs 725.88 crore). Interest charges decreased to Rs 464.46 crore from Rs 478.91 crore. As on June 30, 2004, the company's capital adequacy ratio stood at 14.7 per cent of the risk-weighted assets (of which Tier I capital was 13.2 per cent). The minimum requirement is 12 per cent. At the AGM, shareholders approved enabling resolutions that hiked the borrowing limit of HDFC to Rs 50,000 crore, up from Rs 35,000 crore, and also to raise $500 million through

Prudential Bank posts operating profit
Hyderabad: Prudential Bank, the Hyderabad-based urban cooperative bank, has posted an operating profit of Rs 11.1 crore and cash profit of Rs 15.5 crore for the year under review. Stating that the recoveries for the accounting year stood at Rs 130 crore compared with Rs 168 crore in the previous fiscal, the bank said that the percentage of net non-performing assets have come down from 74.81 per cent to 40 per cent. While the operating expenses have come down by Rs 2.23 crore, the bank has maintained the required statutory liquidity ratio as well as cash reserve ratio.

19 July 2004

Allahabad Bank all set to launch new initiatives
Kolkata: Allahabad Bank is all set to revive its subsidiary, Allbank Finance, in the near future.

The company, which has a capital base of Rs 60 crore, does not have any liability. According to the company, distribution of savings and investment products could be one of its main activities in the days ahead. The bank plans to work out an ADR or a rights offer with the intention of mobilizing around Rs 100 crore. The bank also plans to unveil its first overseas branch in Hong Kong and has approached RBI for approval.

Bank of Bahrain's Indian operations go live with RTGS
Mumbai: Bank of Bahrain and Kuwait has announced that its Indian operations went live on Friday with the real time gross settlement (RTGS) system under the framework and guidelines of the Reserve Bank of India. In a press release, the bank said the system would enable instant transfer of funds between banks and financial institutions and helps banks manage intraday liquidity effectively.

Karnataka Bank goes live with RTGS
Mumbai: The Karnataka Bank Ltd went live with real time gross settlement (RTGS) transaction on July 16. A bank release said that the payment gateway of the bank is located at the head office.
The release said the bank has plans to put the system to the full advantage for its customers as 227 branches are already networked.