9 October 2004

Bond prices crash as rupee firms up
Mumbai: Bond prices crashed by around one rupee across maturities as the Reserve Bank of India announced a 'fixed rate' auction. The rupee closed marginally stronger at 45.81/82 against the dollar as against Thursday's levels of 45.85/86.

Forwards Market: The six-month premium ended at 2.45 per cent and the one-year premium ending at 2.05 per cent.

G-Secs: The 10-year benchmark yield touched a high of 6.68 per cent levels. The 7.37 per cent 2014 paper slipped to a low of Rs104.90. The 6.65 per cent 2009 slipped to Rs101.15. The market reacted to the announcement for a re-issue of the 7.38 per cent 2015 paper for raising Rs6,000 crore, to be held on October 11.

Call Rates: Ruled between 4.40 and 4.60 per cent in the inter-bank market.

Canara Bank achieves full computerisation
Bangalore: Canara Bank has achieved cent per cent computerisation with all the 2,476 branches, 57 per cent of which were rural, fully computerised as on September 15, this year, a bank release has said.

The release said it had built a robust networking system covering 1,090 branches/offices. Leased line connections are backed up with ISDN connections under corporate network

Iffco-Tokio targets Rs.500 crore premium
Kolkata: Iffco-Tokio General Insurance has targeted a premium income of Rs500 crore this year compared to Rs323 crore, which it had achieved in the previous fiscal.
The company hopes to achieve its target by adopting multi-pronged strategies, including generation of fresh motor insurance business.

Iffco-Tokio recorded a gross premium of Rs323 crore during the past fiscal, earning a pre-tax profit of around Rs14 crore.

It has also announced the launch of a cashless service for the customers of Toyota Kirloskar Motor. All Toyota buyers will now be able to undertake cashless repairs of insured vehicles.

Banks to offer Senior Citizens Savings Scheme
Mumbai: Banks will now start accepting deposits under the Senior Citizens Savings Scheme (SCSS) which was introduced by the Government in August, said a notification from the Reserve Bank of India.

Banks which are operating 'Public Provident Fund Scheme, 1968' will operate this scheme through their branches.

Small Savings agents working under the Standardised Agency System (SAS) will mobilise deposits under the scheme. Commission of 0.5 per cent will be paid to these agents. The "at source commission payment system" will also be applicable to these agents, the notification said.

RBI announces auction of Rs.6,000 crore fixed rate paper
Mumbai: The Government has announced re-issue of Rs6,000 crore worth of 7.38 per cent 2015 Government paper through a price based auction on October 11, said a RBI release.

The Reserve Bank of India will conduct the auction through multiple price auction method, said the release. Eligible individuals and institutions will be allotted up to 5 per cent of the notified amount of the sale of the stock according to the scheme for non-competitive bidding facility.

The bids should be submitted to the RBI by October 11. The result of the auction will be announced on October 11 while payment will be on October 12. Bids for underwriting should be submitted by the primary dealers on October 9, said the release.

8 October 2004

Rupee firm- Bonds drift
Mumbai: The rupee closed almost unchanged from its previous levels at 45.85/86 on Thursday, as against 45.8650 on Wednesday.

G-Secs: The 6.65 per cent 2009 paper closed at Rs101.35. The 7.38 per cent 2015 got traded up to Rs106.55.

Call Rates: remained at 4.50 per cent levels.

Magma Leasing offers car loans at 2.99 pc interest
Hyderabad: Magma Leasing Ltd (MLL), the Kolkata headquartered Rs867-crore non banking financial institution, has launched its car loan product, christened 'Magma Carisma', at an introductory interest rate as low as 2.99 per cent. The introductory interest rate would continue till Diwali, and there will be no limit on the number of cars to be financed.

The company has been growing rapidly at a compounded annualised growth rate (CAGR) of 79 per cent in the last four years, and has set an ambitious target of achieving disbursal of Rs1,352 crore of retail loans during the current fiscal, compared to Rs867 crore in the previous fiscal. The company has already achieved a gross business of Rs575-crore during the first half of this fiscal.

7 October 2004

Rupee steady
Mumbai: The domestic currency closed almost unchanged at 45.8650.

Forwards Market: The six-month forward closed at 2.43 per cent (2.34 per cent) while the twelve-month forward ended at 2.10 per cent (1.97 per cent).

G-Secs: The 10-year benchmark 7.38 per cent 2014 paper closed at a yield of 6.51 per cent, unchanged from previous close. The 11-year benchmark 7.38 per cent 2015 paper finished at Rs107.10 with yield at 6.46 per cent.

Call Rates: Closed at 4.25-4.50 per cent.

CBLO Market: 140 trades worth Rs5,133.05 crore were transacted in the rate range of 4.4- 4.85 per cent.

RBI segregates companies for premature repayment of deposits
Mumbai: By way of prepayments for accepted public deposits, the Reserve Bank of India has decided to segregate companies that accept such deposits into 'problem' and normally run companies.

Expressing concern over non-banking entities offering premature repayment to depositors, the apex bank has prohibited 'problem companies' from prematurely repaying deposits.

"Certain companies have offered to the depositors the right to premature repayment. Such repayments may vitiate the ALM discipline of companies. In case of a company whose assets may be insufficient to meet all its outside liabilities, such repayments may result in preferential treatment to those depositors who exit early," said the apex bank in a circular issued to all non-banking financial companies, miscellaneous non-banking companies and residuary non-banking companies.

The circular said that the provisions need a review for the purpose of safeguarding the ALM discipline among the companies and to restrict preferential prepayment.

The existing contracts granting the right for premature withdrawal on the depositor would remain unchanged, according to the RBI circular.

T-bill auction rates
Mumbai: The Reserve Bank of India has set a cut-off price of Rs98.75 (cut-off yield 5.08 per cent) at the 91-day treasury bill auction held on Wednesday. This cut-off price was marginally lower than the previous cut-off at Rs 98.76.

Of the 87 competitive bids worth Rs 4,067.17 crore received for the auction, 64 bids worth the notified amount of Rs 2,000 crore were accepted. The partial allotment percentage of competitive bids was at 6.02 per cent, while the weighted average price was Rs 98.76.

LIC (South) premium income up 155.4 percent for H1
Chennai: The Life Insurance Corporation's South Zone division has announced that its new business premium from individuals in the first half of 2004-05 was Rs672 crore (Rs263 crore), up by 155.4 per cent in relation to the previous year's corresponding period.

LIC South Zone's press release said that the total premium in the first half was over Rs4,000 crore. The release added that the south zone stood first among LIC's seven business zones.
Dena Bank loans on easier terms for M&M tractors
Mumbai: The Dena Bank has signed an MoU with Mahindra & Mahindra Ltd (M&M) to extend financial assistance to farmers buying M&M tractors.

Against the norm of 15-25 per cent margin money, the bank will finance M&M tractors at lower margin money of five per cent of the invoice cost of the tractor.

"Even the land holding requirement has been reduced from existing eight acres of perennially irrigated land to four acres and the loans are repayable over a period of 7-9 years,' an official statement said.

On its part, M&M is offering a cash discount of Rs3,000 on the invoice price of the tractor to be passed on directly to the farmer.

HSBC to take investments in the country to $1billion
Mumbai: Hongkong and Shanghai Banking Corporation Ltd (HSBC) has said that it is looking at acquisitions in India subject to availability of opportunity and regulatory provisions. The bank would keenly pursue organic growth through areas such as asset management, private banking and personal financial services market.

The bank is planning investments of about $400 million in the Indian market, which would take its cumulative investment to $1 billion, though no time frame was decided as yet for these investments. At present, the bank's Indian investments stand at around $600 million including the financial investments in UTI Bank.

The bank also plans to open new branches of which three branches would be opened this year taking the total number of branches to 40. Another 5 - 10 branches would be set up later.

In order to support functions catering to the global requirements of HSBC, the bank is planning to open a service centre in India. This would help front-end operations in other countries through credit analysis, equity analysis, data collection and other functions.

French speaking people would be required for manning this centre.

Profits through banking operations of HSBC India witnessed a 40 per cent growth for the January to June half of 2004 as it reached $86 million for the period.

6 October 2004

Rupee and bonds weaken
Mumbai: The rupee closed weaker against the dollar on Tuesday at 45.8625/8750, against its earlier closing of 45.85 per dollar on Monday.

Forwards Market: The six-month forward closed at 2.34 per cent (2.17 per cent) while the twelve-month forward finished at 1.97 per cent (1.88 per cent).

G-Secs: Yield on the 10-year benchmark 7.37 per cent 2014 paper soared to 6.51 per cent (6.45 per cent) at a price of Rs106.15.

Call Rates: At 4.75-4.80 per cent in early trading, settling at 4.30-4.50 per cent at close.

CBLO Market: 136 trades were transacted in the rate range of 4.20-4.75 per cent, as the volume reached about Rs4,998 crore.

Max NY Life to hike capital base
New Delhi: MAX New York Life Insurance (MNYL) plans to hike capital by another Rs100 crore soon. The company's present paid up capital is Rs.387 crore.

Meanwhile Max has launched a flexible unit-linked investment plan - Life Maker. The plan would help customers manage their financial needs, including protection, investment and liquidity. The company would soon also introduce a pension product.

Life Maker provides the customer a choice from two terminal benefits - Level Insurance Cover and Increasing Insurance Covers. In the former case, the nominee will receive the higher of the insurance cover or value of units while in the case of latter, the nominee will receive the insurance cover plus the value of units in the plan.

In addition, during the tenor of the plan, the customer can switch from Increasing Insurance Cover to Level Insurance Cover.
The customer also has the flexibility of increasing or decreasing their sum assured during the tenor of the plan. Life Maker can be further customised using two riders - personal accident rider and dread disease rider.

Oriental Bank loan for public issues
New Delhi: Oriental Bank of Commerce has launched Equity, a loan to buy IPO shares. Through this, OBC will offer a maximum amount of Rs.10 lakh.

The loan will be extended at nine per cent per annum. The margin to be contributed by the customer is 40 per cent. The bank has said that no charge will be levied for demat account opened for availing the loan.

SBT hikes FCNR, RFC deposit rates
Thiruvananthapuram: State Bank of Travancore (SBT) has raised the interest rates for FCNR term deposits in US dollars for various periods from one to three years with effect from October 4.

The revised rate for US dollar deposits for one year to less than two years is 2.24 per cent, two years to less than three years 2.72 per cent and for three years and above 3.08 per cent.
The interest rates for RFC deposits have also been revised to 2.24 per cent, 2.72 per cent and 3.08 per cent, respectively, for the corresponding periods as in the case of FCNR deposits. The rate for a period of six months to less than one year remains at one per cent, according to a bank statement.

5 October 2004

Rupee continues strong run as securities dip
Mumbai: The rupee closed stronger at 45.85 against the greenback on Monday.

Forwards Market: The six-month forward closed at 2.17 per cent (2.14 per cent) while the 12-month forward ended at 1.88 per cent (1.83 per cent).

G-Secs: Yield on the benchmark 10-year paper 7.37 per cent 2014 paper closed at 6.45 per cent, 7 basis points higher than previous close. The 11-year 7.38 per cent 2015 paper closed at a yield of 6.39 per cent.

Call Rates: In the range of 4.55-4.65 per cent.

CBLO Market: 150 trades worth Rs 4,561.0 crore were transacted in the range of 4.50-4.65 per cent.

ICICI Bank's launches "Everybody Wins"
Mumbai: ICICI Bank has announced, "Everybody Wins", a festival scheme for its debit and credit card holders.

According to the scheme, a refund of 5 per cent of purchase value will be given to each customer who makes a transaction worth Rs2,000. The offer is from October 1 to December 31 and have a maximum refund limit of Rs5,000.

ICICI Bank has a credit card base of 2.5 million.

4 October 2004

Centre completes 44 percent borrowings in the first half
New Delhi: In the first six months of this fiscal, the Centre has managed to complete just a little over 44 per cent of its budgeted market borrowings.

For 2004-05, the Centre's gross market borrowings are budgeted at Rs1,50,817 crore, of which Rs1,24,817 crore are to be raised through dated securities and the remaining Rs26,000 crore from 364-day Treasury bills. These amounts do not include floatation of bonds under the Market Stabilisation Scheme (MSS).

As against this, the Centre has so far mobilised only Rs67,000 crore, which includes Rs54,000 crore from dated securities and Rs13,000 crore through issue of 364-day bills.

Bank wage talks set for resumption
Chennai: An improved wage offer from the Indian Banks' Association has led to the withdrawal of the threatened two-day strike on October 5 and 6.

The IBA has offered a wage hike that would amount to Rs1,800 crore compared with Rs1595 crore offered earlier. The offer came at a conciliation meeting held under the auspices of the Chief Labour Commissioner, S.K. Mukhopadhyay, at Mumbai.

The United Forum of Bank Unions, has said that this was an interim offer and that they had decided to withdraw the strike and talk further on the issue. According to the Forum, the IBA have raised their offer to 11 per cent against the minimum increase of 12.25 per cent that the Forum has been demanding.

Further talks on the issue, would resume on October 8.