Rupee gains on dollar weakness
Mumbai: The rupee gained against the dollar which weakened against all major overseas currencies.

The rupee opened at 45.08/0950 and touched 45.11 in the morning trade. However, due to constant dollar selling it gained and ended at 44.92, against Friday's close of 45.1450.

Forwards: In the forward premia market, the six-month premium closed at 1.15 per cent (0.99 per cent), and the one-year closed at 1.16 per cent (1.05 per cent).

Bonds: The bond market was dull ahead of Tuesday's auction, with primary dealers staying away from active trade. There was no aggressive buying or selling though there was support towards the close of trade as prices fell, said a dealer with a private bank.

G-Secs: The 9.39 per cent-5 year-2011 paper opened at Rs110.35 (6.98 per cent YTM) and ended at Rs110.37 (6.97 per cent YTM) down from Friday's close of Rs110.43 (6.95 per cent YTM).The 7.59 paper 10-year 2016 paper opened at Rs101.66 (7.35 per cent), touched a low of Rs101.5 (7.37 per cent) and closed at Rs101.65 (7.35 per cent YTM). RBI is auctioning two papers on Tuesday, the 7.4 per cent 2012 Government security for Rs6,000 crore and 7.95 per cent 2032 G-Sec for Rs4,000 crore.

Call rates: Call rates closed almost unchanged at 5.5-5.65 per cent (5.5-5.6 per cent).

Repo auction: In the first one-day reverse repo auction under LAF, the RBI received and accepted 36 bids amounting to Rs33,700 crore and 35 bids for Rs33,300 crore in the second auction. There were no repo bids.

CBLO: The CBLO market saw 281 trades, aggregating to Rs19,151.50 crore in the rate range of 5.19-5.25 per cent.
Back to News Review index page  

Kotak Mahindra raises $100 mn through GDS issue
Mumbai: Kotak Mahindra Bank has raised about $100 million through the issue of 1.5- crore Global Depository Shares (GDS). Each GDS represents one underlying equity share of Rs10 each and was priced at $6.6 adding up to approximately Rs300 per equity share, which is at a premium of 4.5 per cent to the closing market price of the bank's shares on April 19, the bank said. The GDS will be listed on the Luxemburg Stock Exchange and the underlying equity shares would be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange.

The bank raised the funds to shore up its Capital Adequacy Ratio (CAR), which was 11.5 per cent as on December 31, 2005, said an official from the bank.
Back to News Review index page  

Canara Bank net up 21 pc
Bangalore: PSU bank Canara Bank has reported a record net profit of Rs1,343.22 crore for the financial year 2005-06 (FY06), up 21 per cent over the previous year. In 2004-05, the bank had reported a net profit of Rs1,109.51 crore.

The chairman and managing director, of the bank M.B.N. Rao, said the bank was able to achieve the profit despite the large provisioning of Rs1,269 crore last year.

The high net profit was driven by the increased operating profit of Rs2,611.88 crore for FY06, from the previous year's Rs2,585.33 crore. Netted for treasury operations, the operating profit showed a robust 20 per cent growth at Rs2,500.44 crore (Rs2,085.55 crore). Profit from treasury operations was just Rs111.64 crore down from the previous year's Rs499.78 crore.

The high operating profit was driven by increased income from core operations. Gross income of the bank in FY06 hit a milestone by touching Rs10,089.03 crore from the previous year's figure of Rs9,115.8 crore. Interest income during the period was Rs8,711.51crore up from Rs7,571.97 crore.
Back to News Review index page  

IndusInd Bank to float Tier II bonds
Kolkata: IndusInd Bank plans to raise Rs350 crore by floating upper Tier II bonds. This is among the options that it will explore this year. The bank, which recently raised Rs100 crore, may also require to mobilise new Tier 1 capital. A GDR issue is expected to be among the proposals it will consider.

Bhaskar Ghose, MD & CEO, IndusInd Bank said the bank plans to shore up its capital base, which now stands at Rs290 crore. It has already taken shareholders' consent to increase it to Rs400 crore. However, the bank is yet to define the exact amount of fresh capital it finally intends to raise.

At another level, IndusInd Bank is proposing tie-ups with a number of overseas banks, in line with its new partnership with the Abu Dhabi-based Union National Bank. The latter covers a range of banking services and allows both partners to cater to NRIs.
Back to News Review index page