18 December 2004
Rupee eases off as bonds rally
Mumbai: After rising for four consecutive sessions, the rupee ended at 43.96/97 against the dollar, about five paise weaker than previous finish at 43.91/92.
Forwards Market: The six-month annualised premium ended at 2.11 per cent (2.15 per cent) while the one-year premium finished at 1.48 per cent (1.50 per cent).
Call Rates: in the range between 5.10 per cent and 6 per cent.
CBLO Market: Rates were in the range of 5.78 to 6 per cent for bids worth nearly Rs5,300 crore.
G-Secs: The yield on the benchmark 7.38 per cent 2015 paper ended at 6.73 per cent. In the 7.55 per cent 2010 paper, the yield went up to 6.47 per cent towards close.
RBI to issue new currency notes
Kolkata: The Reserve Bank of India proposes to introduce new currency notes with added security features in early 2005. Newly designed coins, too, will be brought out in the near future.
The apex bank has been examining the feasibility of printing notes bearing extra elements of security, trying to eliminate the possibility of counterfeiting. It is also attempting to dispose soiled notes in a manner that does not harm the environment.
Notes of different denominations have different economic lives and it has stopped printing notes of three denominations: one, two and five. It now prints notes in five other denominations: 10, 20, 50,100 and 1,000.
Some of the new security attributes will have to be compatible with machinery used by the banks, and therefore, new machinery will have to be introduced at the bank end as well.
ING Vysya Life to hike capital
Thiruvananthapuram: ING Vysya Life Insurance Company is set to increase its capital by Rs35 crore in the coming months.
According to Frank Koster, Managing Director and Chief Executive Officer of ING Vysya Life, the company's capital will be expanded from Rs290 crore currently to Rs325 crore, either by March 2005 or June. He indicated that talks are on with key shareholders - ING Insurance International BV, ING Vysya Bank and GMR group - to work out the modalities of the proposed capital expansion.
Syndicate Bank public issue soon
Coimbatore: Syndicate Bank is aiming at a total business volume of Rs75,000 crore this fiscal and Rs 1-lakh crore by March 2006, its Chairman and Managing Director, K.M. Shet, said here on Friday.
The bank is gearing up for a second public offering. Shet said that the bank is planning a public offering of Rs50 crore equity shares. It will be at an appropriate premium. The issue is slated for January 2005. Consequent to this offer, the Government holding will come down from the present level of 73.62 per cent by about 6 per cent, Shet said.
17 December 2004
Rupee up eleven paise
Mumbai: The rupee rallied for the fourth consecutive session ending at 43.91/92 per dollar on Thursday. The currency closed eleven paise above the previous finish at 44.02/03.
Forwards Market: The six-month annualised premia ended at 2.15 per cent (1.88 per cent) and the one-year forward finished at 1.50 per cent (1.40 per cent).
G-Secs: The yield on the benchmark 7.38 per cent 2015 paper ended at 6.73 per cent, unchanged from previous levels. The 7.55 per cent paper finished at 6.47 per cent.
Call Rates: in the inter-bank market were in a range of 4.75-5.20 per cent. CBLO market: 140 trades aggregating nearly Rs4,900 crore were transacted.
RBI sets priority sector tag for Nabard bonds only
Mumbai: The Reserve Bank of India has said, effective April 1, 2005, investments by banks in the bonds issued by the specified institutions, except Nabard, shall not be eligible for classification under priority sector lending.
The specified institutions include Rural Electrification Corporation (REC), State Financial Corporations(SFCs), State Industrial Development Corporations (SIDCs), SIDBI, National Small Industries Corporation(NSIC), National Housing Bank (NHB) and Hudco.
In a circular to the chiefs of all commercial banks, the RBI has said that investments, which have already been made or that have to be made by banks up to March 31, 2005, in the special bonds issued by the specified institutions - except Nabard - shall not be eligible for classification under priority sector lending with effect from April 1, 2006.
Investments in the special bonds issued by Nabard shall not be eligible for classification under priority sector lending with effect from April 1, 2007.
At present, investments made by the scheduled commercial banks in special bonds issued by specified institutions, SFCs, SIDCs, REC, Nabard, SIDBI, NSIC, NHB and Hudco, subject to certain conditions, are deemed as indirect finance to agriculture, SSI, housing sectors, as the case may be within the priority sector lending.
The existing guidelines in this regard may continue up to March 31, 2005.
PNB picks up 3.7 percent stake in Surana Telecom
Hyderabad: The Punjab National Bank has acquired 4,19,996 equity shares of Surana Telecom Ltd, which represents about 3.72 per cent of the total paid-up capital of the company. The company has also seen another investor, Fortis, picking up over one per cent recently.
Promoters' holding, consequently, has come down to about 65 per cent from 69 per cent earlier.
The company is also in the process of hosting an investor meet for FIIs in the UK later this week. This is aimed at raising funds to part fund its CDMA expansion project. The company has received approvals from Telecom Engineering Centre of the Department of Telecommunications for optical fibre cables (OFCs) that conform to new specifications.
16 December 2004
Rupee up nine paise- bonds slide
Mumbai: The rupee continued its upward trend and ended the day at 44.02/03 against the dollar on Wednesday, nine paise stronger than its previous close at 44.11/12.
Forwards Market: The six-month forward closed at 1.88 per cent (1.82 per cent) and the one-year forward ended at 1.40 per cent (1.38 per cent).
G-Secs: The yield on the 7.38 per cent 2015 paper closed at 6.73 per cent at a price of Rs105.95. The 7.55 per cent 2010 paper ended lower at 6.47 per cent at a price of Rs104.85.
T-Bills auction: In the Rs2,000 crore 91-day treasury bill auction cut-off yield was set at 5.40 per cent, substantially higher than previous cut-off at 5.15 per cent.
Call Rates: in the range of 5-5.25 per cent.
CBLO market: 99 trades worth about Rs4,000 crore were transacted.
IDBI Bank in pact with Coal Mines Provident Fund
Mumbai: IDBI Bank has announced a tie-up with the Coal Mines Provident Fund (CMPF). Through this tie-up, the bank plans to disburse pensions and provident fund payments to 1,25,000 miners all over the country.
The bank said that its online networking of branches across the country and its high-end technology, will allow the coal miners to access their pensions and provident funds without any hassle.
Chidambaram: Mergers will help PSU banks face competition
New Delhi: The Finance Minister, P. Chidambaram, has said that a larger size would provide banks with the wherewithal to take on international competition and would also enable them to manage their risks more efficiently.
"Consolidation would allow economies of scale in terms of footprint, manpower and other resources. Having Indian banks of a larger size would also enable them to face competition arising from internationalisation of the economy. Larger size also entails better management of risk," Chidambaram said in a statement in the Lok Sabha on a calling-attention notice by the CPI member, Gurudas Dasgupta.
Dasgupta had moved the notice on various issues relating to banking policy including dilution of Government stake in PSU banks, merger of banks, and FDI in private sector banks.
The Finance Minister said that small and weak banks pose systemic risks with their low capital adequacy ratio and high non-performing assets. "Consolidation is a timely response to augment efficiency, which would lead to income generation and add to the GDP of the country," he said.
UTI Bank decides to split CMDs post
Mumbai: The board of the UTI Bank has decided to split the post of chairman and managing director. Bank sources have indicated that Nayak, whose five-year term as CMD is slated to end on December 2004, has declined the offer.
The board meeting was convened at the behest of UTI-I, specified undertaking of UTI, which is one of the promoters of new generation bank.
14 December 2004
Rupee pulls back 52 paise on earlier losses
Mumbai: The rupee recovered some of its earlier losses, ending at 44.2750/2850 against the dollar, 52 paise stronger than its previous close at 44.79/80 on Friday.
Forwards Market: The six-month forward closed at 1.50 per cent (1.61 per cent) while the 12-month forward ended at 1.24 per cent (1.29 per cent).
G-Secs: Yield on the benchmark 7.38 per cent 2015 paper closed at 6.69 per cent with the price of the paper closing at Rs105.25. The 7.55 per cent 2010 finished at Rs104.90 at a yield of 6.47 per cent.
Call Rates: in the inter-bank market ranged between 4.60 per cent and 4.80 per cent.
CBLO Market: 124 trades worth Rs5,277.65 crore were transacted in the rate range of 4.65 to 5.00 per cent.
Banks told to comply with directions on savings bonds
Mumbai: The Reserve Bank of India has said that most of the designated branches of Agency banks dealing in savings bonds have not adhered to the directions issued by the central bank and has warned them that non-compliance with instructions will be dealt with in a serious manner.
In a notification to the chiefs of State Bank of India and Associate banks, 17 Nationalised banks, UTI Bank Ltd, ICICI Bank Ltd, HDFC Bank Ltd and IDBI Bank Ltd and Stock Holding Corporation of India Ltd, the central bank has said that although the designated branches have introduced standardised application forms for savings bonds, they could not provide the same readily when applicants had requested for the same.
The information relating to the `duties and rights of the investor' was kept separately and provided only on specific request. Some of the designated branches continued to use the old application forms and argued that they have the approval of RBI to use them till the stock is exhausted.
No such approval has been granted by RBI and the Agency banks were instructed to commence using the standardised application forms with effect from June 15, the apex bank has said.
ICICI Bank board okays sponsored ADR size
Mumbai: The board of directors of ICICI Bank Ltd on Monday approved the size of the sponsored American depository receipt (ADR) offering to be up to a maximum of 6 per cent of the bank's paid-up equity share capital.
This would be about 44 million shares and at the current price, the offer would be to the tune of $400 million, said a bank official.
13 December 2004
Canara Bank to spread wings abroad
Thiruvananthapuram: Canara Bank is implementing its plans to spread operations to more countries.
The bank has entered into an understanding with Sberbank, the leading savings bank in Russia, for cooperation in all areas of banking. Canara Bank is already in operation in Moscow in a joint venture with the State Bank of India.
The bank has also sought permission to open a representative office in China. It is currently awaiting the necessary licence to convert its representative office in Hong Kong into a full-fledged branch. Besides, the bank is looking into the possibilities of opening branches in the Gulf and some other countries.
The Canara Bank's capital adequacy was at 13.9 per cent, at the end of September, and the bank has no immediate plans to tap the market.
The bank was considering the merger of its four RRBs in Karnataka into a single entity. Similarly, the merger of its three RRBs in Uttar Pradesh is also on the cards. The bank's board will take a decision in this regard shortly and then approach the Centre and the respective state governments for approval.
IRDA suspends Golden Multi Services
Hyderabad: The Insurance Regulatory and Development Authority (IRDA) has suspended the insurance distribution activities of Golden Multi Services Club Ltd (GMSCL) and its associate companies on the grounds of mis-selling of insurance products.
In an order issued on Thursday, the IRDA Chairman, C.S. Rao, said the authority had received complaints from the public from different parts of the country about mis-selling of insurance products by GMSCL and its associates - Golden Trust Financial Services, Golden Multi Services Pvt Ltd, Golden Corporate Services and Golden Trust Multi Services.