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21 Aug 2004 Rupee closes higher
Mumbai: In the Forex market, the spot rupee ended around five paise stronger at 46.32/33 as against its previous closing at 46.35/37.
Forwards Market: The six-month premium ended at 2.80 per cent (2.74 per cent), while the premium for one year ended at 2.46 per cent (2.42 per cent).
G-Secs: The 10-year benchmark paper, the 7.37 per cent 2014 closed stronger at Rs.106.15. The 7.38 per cent 2015 paper also closed at Rs.106.25 levels.
Call rates: Easy at 1.50 per cent-2.00 percent levels in the inter-bank market.
Allahabad Bank provides relief package for farmers
Kolkata: Allahabad Bank, according to a press note issued here, will provide conversion and rescheduling facilities in case of damage to standing crops due to natural disasters. Those who have suffered from production and income losses on account of such disasters for two or more consecutive years (during the past five years) will get a special facility: Their existing loans as on March 2004 will be rescheduled by the bank. The restructured amount will be payable over a period of five years at current rates of interest. This will include an initial moratorium of two years, after which the farmers concerned will become eligible to take fresh loans. A scheme for one-time settlement of dues has been drawn up. This will relate to farmers who are in default of earlier loans as on June 30, 2004. It will offer them various relaxations and concessions for settlement of dues. Such a measure will make them eligible for fresh loans once again.
All branches of the Federal Bank are RTGS enabled
Kochi: The Federal Bank will offer instant fund transfer facilities to all its customers through the real time gross settlement system, which is now available across all its branches. According to a press release issued by the bank, it is the first bank in the country to extend inter-bank transactions through the RTGS system at all its branches.
Srei International goes global
Kolkata: SREI International Finance Ltd has gone global with the formal launch of operations of its wholly-owned German subsidiary, International Infrastructure Services GmbH (IIS). The company has also announced a CEO for the German subsidiary.
Registered in Bonn, IIS will have two managing directors, as required by German company regulations. While Mr Hemant Kanoria is the MD on the Indian side, Dr Stephan Kinnemann, a banker by profession, will be heading the international operations from his Bonn office.
Dr Kinnemann is also the special advisor on investment and trade to Afghanistan, appointed by the Government of the Federal Republic of Germany. The two companies today formalised the relationship by signing the articles of association and exchange of documents. Formed with an initial equity base of one million euro, the board structure of the new company and formation of another outfit in Russia would be finalised at Srei's forthcoming board meeting here, following the AGM on August 28. IIS would act as a bridge between the small and medium German and Indian companies, particularly in the area of infrastructure equipment financing and other financial services, including consultancy. The new outfit would be competing with other international infrastructure finance companies that may be entering India for participating in the new projects such as developing airports and urban infrastructure.
HDFC exits SBI Home Finance
Mumbai: HDFC has sold its entire stake of over 12 per cent in SBI Home Finance through the open market. SBI Home Finance was promoted by SBI along with HDFC in 1988. In a notice to the NSE, SBI Home Finance said HDFC has sold its holding in the company and its holding stands reduced to nil. The shares, sold in the market between Rs.11-12, have realized total proceeds of around Rs.2 crore.
Gartner will be IT advisor to Yes Bank
Mumbai: YES Bank has announced the appointment of Gartner India as its advisor to develop a information technology strategy, said a press release. Gartner will work to develop an IT blueprint for the bank considering its business strategy and technology architecture. Also the company will focus on building operations, governance and organisational models for the technology initiatives of the bank, said the release.
States announce loan sale
Mumbai: Three State Governments, Kerala, Tamil Nadu and West Bengal, have announced the auction of a 10-year stock for an aggregate amount of Rs.1, 186 crore, on August 24. The auction will be held based on the multiple yield format, said a press release.
Unions reject IBA offer
Chennai: At the wage negotiation talks held today in Mumbai, the Indian Banks Association is understood to have improved its wage offer. The unions, though, have rejected the offer terming it as not good enough. KSFE and Western Union tie-up for transfers
Kochi: The Western Union, an international company involved in money transfer services, has entered into strategic partnership with Kerala State Financial Enterprises Limited (KSFE) through its authorised agent, Paul Merchants Ltd. According to a press release, the KSFE, a government company, will provide inbound money transfer services across the country. The Western Union Money Transfer service would be available at KSFE's 60 banking offices across five districts in the State in the first phase.
KSFE, which has 230 branches, hopes to provide the Western Union Money Transfer service in other branches in the next few months, it said.
GIC staff to extend solidarity to bank stir
Kochi: The General Insurance Officers All India Association (GIOAIA), Kerala unit, has declared that it would extend solidarity to the one-day strike on Aug 24 called by the bank employees and officers' unions demanding revision of wages etc. Around 10 lakh workers and officers are participating in the strike demanding acceptance of their various demands and these issues are similar to that in the insurance sector, according to the GIOAIA.
20 Aug 2004 Rupee closes higher
Mumbai: In the Forex market, the spot rupee ended around five paise stronger at 46.32/33 as against its previous closing at 46.35/37.
Forwards Market: The six-month premium ended at 2.80 per cent (2.74 per cent), while the premium for one year ended at 2.46 per cent (2.42 per cent).
G-Secs: The 10-year benchmark paper, the 7.37 per cent 2014 closed stronger at Rs.106.15. The 7.38 per cent 2015 paper also closed at Rs.106.25 levels.
Call rates: Easy at 1.50 per cent-2.00 percent levels in the inter-bank market.
Allahabad Bank provides relief package for farmers
Kolkata: Allahabad Bank, according to a press note issued here, will provide conversion and rescheduling facilities in case of damage to standing crops due to natural disasters. Those who have suffered from production and income losses on account of such disasters for two or more consecutive years (during the past five years) will get a special facility: Their existing loans as on March 2004 will be rescheduled by the bank. The restructured amount will be payable over a period of five years at current rates of interest. This will include an initial moratorium of two years, after which the farmers concerned will become eligible to take fresh loans. A scheme for one-time settlement of dues has been drawn up. This will relate to farmers who are in default of earlier loans as on June 30, 2004. It will offer them various relaxations and concessions for settlement of dues. Such a measure will make them eligible for fresh loans once again.
All branches of the Federal Bank are RTGS enabled
Kochi: The Federal Bank will offer instant fund transfer facilities to all its customers through the real time gross settlement system, which is now available across all its branches. According to a press release issued by the bank, it is the first bank in the country to extend inter-bank transactions through the RTGS system at all its branches.
Srei International goes global
Kolkata: SREI International Finance Ltd has gone global with the formal launch of operations of its wholly-owned German subsidiary, International Infrastructure Services GmbH (IIS). The company has also announced a CEO for the German subsidiary.
Registered in Bonn, IIS will have two managing directors, as required by German company regulations. While Mr Hemant Kanoria is the MD on the Indian side, Dr Stephan Kinnemann, a banker by profession, will be heading the international operations from his Bonn office.
Dr Kinnemann is also the special advisor on investment and trade to Afghanistan, appointed by the Government of the Federal Republic of Germany. The two companies today formalised the relationship by signing the articles of association and exchange of documents. Formed with an initial equity base of one million euro, the board structure of the new company and formation of another outfit in Russia would be finalised at Srei's forthcoming board meeting here, following the AGM on August 28. IIS would act as a bridge between the small and medium German and Indian companies, particularly in the area of infrastructure equipment financing and other financial services, including consultancy. The new outfit would be competing with other international infrastructure finance companies that may be entering India for participating in the new projects such as developing airports and urban infrastructure.
HDFC exits SBI Home Finance
Mumbai: HDFC has sold its entire stake of over 12 per cent in SBI Home Finance through the open market. SBI Home Finance was promoted by SBI along with HDFC in 1988. In a notice to the NSE, SBI Home Finance said HDFC has sold its holding in the company and its holding stands reduced to nil. The shares, sold in the market between Rs.11-12, have realized total proceeds of around Rs.2 crore.
Gartner will be IT advisor to Yes Bank
Mumbai: YES Bank has announced the appointment of Gartner India as its advisor to develop a information technology strategy, said a press release. Gartner will work to develop an IT blueprint for the bank considering its business strategy and technology architecture. Also the company will focus on building operations, governance and organisational models for the technology initiatives of the bank, said the release.
States announce loan sale
Mumbai: Three State Governments, Kerala, Tamil Nadu and West Bengal, have announced the auction of a 10-year stock for an aggregate amount of Rs.1, 186 crore, on August 24. The auction will be held based on the multiple yield format, said a press release.
Unions reject IBA offer
Chennai: At the wage negotiation talks held today in Mumbai, the Indian Banks Association is understood to have improved its wage offer. The unions, though, have rejected the offer terming it as not good enough.
19 Aug 2004 Bond prices crash
Mumbai: The domestic currency ended at 46.35/37 per dollar, fairly unchanged from the previous closing levels.
G-Secs: Bond prices crashed by a rupee across maturities consequent to the Reserve Bank of India fixing higher than expected yield in its auction on Wednesday. A yield of 5.53 per cent was fixed on the 6.18 per cent 2005 paper auctioned for Rs.5, 000 crore. The yield on the 10-year benchmark, the 7.37 per cent 2014 paper rose 8 basis points to close at 6.53 per cent. The 11-year benchmark fell to Rs.106.00 from the day's high of Rs.106.90.
Forwards Market: The six-month forward closed at 2.74 per cent (2.75 per cent) while the 12-month forward ended at 2.42 per cent (2.5 per cent).
Call Rates: At about 4-4.50 per cent
RTGS: Small value transactions may be costlier
Mumbai: Banks may levy higher transaction charges on low-value transactions conducted on the Real-Time Gross Settlement System (RTGS). Transactions that have bulkier volumes are likely to cost less, according to banking sources.
The costs that have been invested in terms of technology and infrastructure for implementing this system will eventually have to be recovered but initially the system will be promoted for free.
Small-value transactions will work out to be more expensive for the bank as in the RTGS system, the higher the volumes, the better the cost. Therefore eventually, smaller value transactions may attract a higher transaction cost for the customer. As regards security, while many banks are constantly fine-tuning their own internal systems, transactions on the RTGS, complete with digital signatures and other encryptions, will be secure.
Rs.2, 000-crore T-bill cut-off price at Rs.94.89
Mumbai: The cut-off price for the Rs.2, 000-crore 364-day treasury bill auction was fixed at Rs.94.89, while the cut-off yield on paper came in higher at 5 per cent. The number of competitive bids received was 63 (worth Rs.1, 876 crore). Of these, 59 bids were accepted. For the Rs.2, 000-crore 91-day Treasury bill auction, the cut-off price was fixed at Rs.98.79. A total of 74 competitive bids worth Rs.3, 271 crore were received, of which 46 were accepted. The partial allotment percentage for the auction came at 74.14 per cent. The yield at the auction of Rs-5,000-crore, 6.18 -per cent Government stock was fixed at 5.53 per cent, higher than market expectations of 5.25 per cent. The cut-off price was fixed at Rs.100.64. The number of competitive bids received was 125 for the amount of Rs.5, 580 crore, of which 114 bids were accepted. The partial allotment percentage was at 40 per cent.
Andhra Pradesh to float NRI bonds
Hyderabad: The Andhra Pradesh government will float bonds to raise Rs.2, 500 crore to Rs.5,000 crore from Non-Resident Indians (NRIs) in the United States. The proceeds of the issue would be utilised for funding developmental activities in Andhra Pradesh. The Government would approach the Union Government and Reserve Bank of India to facilitate the launch of the bonds. Besides, the Government was in discussion with a New York-based pension fund operator and two other multi-national companies to invest in the State.
RBI supersedes board of South Indian Co-op Bank
Mumbai: The Registrar of co-operatives has superseded the board of the beleaguered The South Indian Co-operative bank on the recommendation of the Reserve Bank of India. According to sources, the deputy registrar, Mahindra Kalyankar, has been appointed as administrator.
Centurion Bank plans 2-3 branches a month
Mumbai: The Centurion Bank has said that the bank will convert its 14 marketing outlets to branches and add 2 to 3 branches per month subject to regulatory approval as part of their expansion plan. Centurion has also announced its tie-up with Bajaj Allianz Life Insurance Company to distribute the latter's bancassurance products through its branches in the country. Bancassurance products will be offered at 46 branches and 16 extension counters from October 1 in the first phase. The distribution set-up would be expanded to 15 more branches and six extension counters in the second phase. The bank also plans to tie up with a leading equity broking firm to provide direct equity services to customers
IOB gold card for exporters
Coimbatore: IOB has introduced the IOB Expo Gold Card that entitles the holder access to faster sanction of credit on liberal terms including interest concession. Exporters, particularly small and medium players, will find their access to credit simplified.
SBT cuts interest rates for Onam
Thiruvananthapuram: The State Bank of Travancore (SBT) has reduced interest rates on home and vehicle loans during the Onam festival season.
The lower rates will be applicable to loans sanctioned between August 1 and 31, according to a statement from the bank. The interest rate for home loans with floating rates for tenures between five and 10 years will be 7.5 per cent, instead of the prevailing 8 per cent. For tenures above 10 years, the rate has been reduced to 8 per cent from 8.25 per cent during the festival period. There will be reduction in the interest for loans for purchase of new cars. For loans repayable within 35 months, the rate will be 8 per cent against the normal rate of 9 per cent. For loans above this, the rate will be 9 per cent against the prevailing 9.5 per cent.
For two-wheelers, the reduced rate during the period will be 11 per cent, instead of the existing 11.5 per cent. The "Sahayavarsha" personal loans will be available at a reduced rate of 11 per cent during the period.
18 Aug 2004 Rupee up four paise
Mumbai: The domestic currency gained about four paise on Tuesday to end at 46.35/36 against the dollar.
Forwards Market: The six-month forward closed at 2.75 per cent (2.7 per cent), while the 12-month forward ended at 2.5 per cent (2.39 per cent).
G-Secs: The 7.37 per cent 2014 paper closed at Rs 106.5/10, a net rise of over 35 paise from previous close.
Call rates: In the range of 4.4-4.5 per cent.
Chidambaram to review farm loans
New Delhi: The Finance Minister, P. Chidambaram, has decided to review the 2004-05 agricultural lending programme of public sector banks in a meeting to be held at Delhi on September 9. The meeting has been called in the wake of the policy package announced by the Finance Minister on June 18 for doubling the flow of agriculture credit in three years and to increase the flow of agriculture credit by 30 per cent during the current financial year. Commercial banks have been asked to set bank-wise and State-wise targets and to ensure adequate flow of agriculture credit to meet the targets set under the package. A review of the performance of banks for 2003-04 by the Finance Ministry has shown that only seven public sector banks and three private sector banks have achieved the 18 per cent target set for agriculture lending for the year. These banks are Allahabad Bank, Indian Bank, Indian Overseas Bank, Punjab National Bank, State Bank of Indore, State Bank of Patiala and State Bank of Saurashtra in the public sector and Ganesh Bank of Karudwadi, ICICI Bank and SBI Commercial Bank in the private sector. A Finance Ministry release said that although the amount of outstanding advances to agriculture in absolute term has increased, both in public sector and private sector banks during 2003-04, the outstanding agriculture advances of the public sector banks as on March 31 was Rs.86, 681 crore constituting 15.58 per cent of the net bank credit as against Rs.73,507 crore and 14.8 per cent respectively during 2002-03.
1-year Rs.5, 000 crore securities auction today
Mumbai: Under the market stabilisation scheme (MSS), the Union Government has announced the sale (re-issue) of Rs.5, 000 crore worth 6.18 per cent 2005 paper to be conducted on August 18. The issue will be conducted through a price-based auction using a multiple price auction method. The issue of a dated security with a reduced tenor of one year was decided taking into account all relevant factors, said a RBI release.
Nabard funds for two RRBs in Kerala
Thiruvananthapuram: The National Bank for Agriculture and Rural Development (Nabard) has sanctioned short-term reference assistance of Rs.351.37 crore for 2004-05 to the two regional rural banks (RRBs) operating in the State. While the South Malabar Gramin Bank would get Rs.226.37 crore, the North Malabar Gramin Bank will get Rs.125 crore. The assistance is meant for supporting the RRBs' lending towards crop loans to the extent of Rs.260.35 crore, and Rs.91.20 crore in working capital requirements for production and marketing activities of rural artisans, villages and cottage industries as well as for financing of weaker sections. In addition to refinance assistance for short-term loans, Nabard also provides refinance for investment credit (term loans) granted by the RRBs, the spokesman added.
Kotak Mahindra to add 75 branches in three years
Pune: Kotak Mahindra Bank has firmed up plans to set up 75 branches in the next three years. The bank will open its branches in Jaipur and Kochi in September before commencing operations in Coimbatore in October. The bank said that it intends to be present in 15-16 cities with full-fledged bank branches by the end of the year.
Andhra Bank and TVS Motor tie up
Hyderabad: The Andhra Bank has entered into an alliance with the Rs 3,000-crore automobile major, TVS Motor Company, for providing easy finance to two-wheeler customers across Andhra Pradesh. The bank would offer interest rates as low as 9.25 per cent diminishing for institutional customers and 9.75 per cent for retail customers. The bank would also offer life and health insurance free of cost to the two-wheeler customers, he added. Andhra Bank, which has financed around 9,000 vehicles following a tie-up with Bajaj Auto so far, has fixed a target of financing around 25,000 vehicles during the current fiscal. Two-wheelers continued to dominate the vehicular population in Andhra Pradesh and account for 66.97 per cent of the State's total vehicle population. According to the Andhra Bank it plans to enter into many more such strategic alliances with various automobile manufacturers.
17 Aug 2004 Rupee declines
Mumbai: The Indian currency declined for the second consecutive session on Monday to close at 46.39/41 against the dollar, weaker by about 10 paise from previous close. The rupee had ended at 46.31 on Friday.
Forwards Market: The six-month forward closed at 2.70 per cent (2.76 per cent), while the twelve-month forward ended at 2.39 per cent (2.41 per cent).
G-Secs: The ten-year benchmark 7.37 per cent 2014 paper moved up half a rupee to end at Rs.105.75. The 7.38 per cent 2015 paper went upwards from Rs.105.30 to Rs.105.80.
Call rates: In the range of 4.40-4.50 per cent.
Banks can use RTGS for customer transactions
Mumbai: The Reserve Bank of India has said that the Real Time Gross Settlement system has been enabled for `Straight Through Processing' at the bank's end for putting through customer transactions. This will enable banks to directly credit the customers account without any manual intervention, upon receiving the credit advice and also help facilitate the introduction of the T +1 settlement in respect of stock exchanges, said a press release. Thirty-two out of the 72 banks, that are participants in RTGS system, offer customer related RTGS fund transfer services through 840 branches in 134 major centres across the country, accounting for bulk of banking business in the country. RBI has said that the receiving bank is under an obligation to credit the beneficiary customer's account within two hours of receiving the credit notification at its payment systems gateway. RBI's Real Time Gross Settlement System, which went live on March 26, 2004 was initially, open to the settlement of inter-bank transactions. From April 29, 2004, the RTGS System has been open also for the settlement of customer transactions. Currently, there are 72 banks participating in the RTGS System for inter-bank settlement, accounting for more than 90 per cent of the total value of inter-bank settlements in Mumbai.
Interest norms set on two retiring staff schemes
New Delhi: The Finance Ministry has spelled out the interest treatment on the accumulations in two of its deposits schemes - the Deposit Scheme for Retiring Government Employees, 1989 and the Deposit Scheme for Retiring Employees of Public Sector Companies, 1991. For those deposits that mature on or before September 13, the Ministry has now said that it will cease to earn any interest after September 13. Similarly, deposits maturing after September 13 will not earn any interest for the period after the date of their maturity. According to official sources, "The interest payment treatment is being spelled out to enable the depositors to take an informed judgement about moving into other schemes."
SBT offers RTGS facility
Thiruvananthapuram: The State Bank of Travancore (SBT), which went live with Real Time Gross Settlement (RTGS) on high-value bank-to-bank remittances in July this year, has now started offering this facility to its customers, says a bank press release. All SBT branches in Mumbai and four branches in Thiruvananthapuram, including the Thiruvananthapuram `Main' and SSI branches, have commenced handling RTGS remittances for customers, the release adds. Using this service, customers can transfer funds to any RTGS-enabled bank branch in the country and have the funds credited within a maximum of two hours, the release says.
HDFC to sell 50 percent in Intelenet to Barclays
Mumbai: HDFC has announced that it would be selling 50 per cent stake in its BPO venture, Intelenet Global Services, to Barclays Bank Plc for Rs.164 crore, subject to regulatory approvals. It was less than a month ago - on July 21 - that HDFC had bought TCS's 50 per cent stake in Intelenet for Rs.161 crore, making Intelenet a 100 per cent subsidiary.
Barclays is a leading UK-based financial services conglomerate operating in over 60 countries. HDFC and TCS had set up Intelenet as a 50:50 joint venture in 2000. The company offers a range of BPO solutions and services and has over 4,300 employees and 19 clients. During the last financial year, it reported revenues of Rs.117 crore, an operating profit of Rs.26.6 crore and net profit of Rs.10.8 crore (before adjustment for deferred tax).
IOB to pay above normal for bulk deposits
Chennai: The Indian Overseas Bank will pay 25 basis points (0.25 per cent) above the normal rates, for bulk deposits of Rs.5 crore and above for periods of 91 days and above. The revised rates come into effect from August 16. The normal rate for deposits above 7 days and upto 179 days is 4 per cent.
16 Aug 2004 RBI to take 'measured' steps to contain inflation
Mumbai: The Reserve Bank of India has said it will take "measured" steps to contain the rise in price level. It further assured that the spurt in the yields of government papers would not impact the Centre's borrowing.
As for the impact of rise in yields on the borrowing programme, the bank says they have not found any difficulty till date and there was ample liquidity in the system.
Forex reserves move up by $1.01 billion
Mumbai: After witnessing a downward trend for the past two weeks, India's foreign exchange reserves rose by $1.01 billion to cross the $119 billion mark during the week ended August 6. The Forex reserves had witnessed an outflow of about $2.75 billion during the previous two weeks.
The foreign exchange reserves, during the period under review, rose from $1,18,319 million to $1,19,336 million.The foreign currency assets also registered a rise of $951 million at $1,13,918 million, according to the RBI's weekly statistical supplement. The RBI's intervention to mop up dollar and fresh inflows led to this growth in reserves.
Gold reserves rose by $66 million to $4,123 million while the special drawing rights were static at $2 million, the central bank said. India's Reserve Tranche Position with the International Monetary Fund (IMF) stood at $1,293 million.
Loans and advances to the Centre rose by Rs.7, 567 crore to Rs.7, 579 crore while that to state governments dropped by Rs.936 crore to Rs.3, 162 crore, it added.
RBI allays fears about banking system
Mumbai: Reserve Bank of India has asserted that the banking system in the country was sound and that depositors should not panic. RBI officials have reacted to reports about the weak financial health of some co-operative banks.
Bank officials made it clear that there was no room for people to have any apprehensions about the soundness of the system.
This reassurance has come in the wake of panic withdrawals leading to RBI freezing the business of city-based Maratha Mandir Co-operative Bank Ltd (MMCBL) and imposing a ceiling of Rs.5, 000 per account on withdrawals.
MMCBL was the second bank after South Indian Co-operative Bank Ltd to face such a restriction within a week.
There were also rumours about the financial health of Punjab & Maharashtra Co-operative Bank Ltd (PMCBL), where depositors queued up at three branches to withdraw their cash. RBI had clarified that PMCBL was well managed and there was no need for depositors to panic.
SBI offers Onam Bonanza
Thiruvananthapuram: State Bank of India (SBI) has cut interest rates on housing loans and car loans during the forthcoming Onam festival period. The reduced rates would be applicable only in Kerala, and only for those loans sanctioned between August 16 and 28.
Housing loans sanctioned during the period would carry an interest rate of seven per cent and car loans, eight per cent. Builders and automobile dealers will also be brought under one roof during the event. There will be special counters at each venue of this event to sanction loans on the spot.
Syndicate Bank eases norms for education loans
Thiruvananthapuram: Syndicate Bank has relaxed norms for its education loans, according to a bank spokesman. No collateral or third party guarantee would be required for education loans up to Rs.4 lakh. For loans exceeding Rs.4 lakh and up to Rs.7.5 lakh, only third party guarantee and guarantee of the parent or guardian will be required. Standard norms will apply for loans beyond Rs.7.5 lakh. The loan scheme covers all courses from school education to super-speciality studies. It offers need-based finance for the entire spectrum of education expenses. For courses within the country, the loan limit is Rs.7.5 lakh and for those outside, Rs.15 lakh.
The interest rate is 10 per cent for loans up to Rs.4 lakh and 9.5 per cent for those above Rs.4 lakh.
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