Rupee dips
Mumbai: The rupee declined against the dollar due to heavy demand for the latter. The domestic currency was very volatile against the dollar on Tuesday. The rupee opened at 44.80, up from Monday's close at 44.92. It then dipped to 44.77 but finally closed at 45. Dealers expect the rupee to be in the range of 45.10-45.20 on account of month-end demand for dollars.

Forwards: In the forward premia market, the six-month was unchanged at 1.15 per cent and the 12-month ended at 1.15 per cent (1.16).

Bonds: Bond prices rose a bit after two government papers were auctioned as the cut-off prices were in line with market expectations. The positive factor in the near term was ample liquidity said dealers.

G-secs: The 7.59 per cent 10-year 2016 paper opened at Rs101.75 (7.34 per cent YTM) and closed at Rs101.70 (7.35 per cent YTM), five paise higher than Monday's level of Rs101.65 (7.35 per cent YTM).The 9.39 per cent 5-year 2011 paper opened at Rs110.48 (6.94 per cent YTM) and ended trade at Rs110.36 (6.97 per cent YTM) , almost unchanged from the previous close of Rs110.37 (6.97 per cent YTM).

Call rates: Call rates were stable at 5.5-5.6 per cent (5.5-5.65 per cent).

Repo auction: In the first one-day reverse repo auction under LAF, RBI received and accepted 28 bids amounting to Rs27,655 crore and 39 bids for Rs39,815 crore in the second auction. There were no repo bids.

CBLO: The CBLO market saw 290 trades, aggregating to Rs19,348.35 crore in the rate range of 5.20 -5.40 per cent.
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South Indian Bank makes record recovery of Rs.161-cr from NPAs
Chennai: South Indian Bank recovered Rs161 crore worth of NPAs in 2005-06. Last year the bank recovered Rs125 crore of NPAs according to the bank's managing director Dr Joseph. He said the figures were being worked out as part of accounts finalisation, but the recovery was substantially higher than slippage.

Dr Joseph added that 2005-06 was a watershed year for the bank and that the bank's net profit in the first three quarters was Rs34 crore, compared with Rs8.7 crore in the year before. Deposits grew to Rs9,600 crore from Rs8,400 crore in the previous year.

Advances increased to Rs6,750 crore from Rs5,450 crore. Both deposits and advances were higher than their targets. Total business at Rs16,350 crore was higher than the target of Rs16,000 crore. Net NPA level is expected to come down to under 2 per cent, from 3.81 per cent in 2004-05.
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SBI lays down anti-laundering norms
Mumbai: State Bank of India has come out with comprehensive guidelines to prevent anti-money laundering (AML) and is one of the major banks in the country to have come out with KYC norms , starting with the definition of customer for the bank, said a banking source.

As per the new guidelines, customers have been classified as high risk, medium risk and low risk. Among others, firms in the private sector, private limited companies, individuals with account balances of Rs 1 crore and above per annum, trusts, charities, non government organisations receiving donations from India and abroad have been classified as high risk accounts.

Similarly, individuals, firms in private sectors, private limited companies and public limited companies with balances of Rs10 lakh to Rs1 crore per annum have been categorised as low risk. Along with some African and East European countries, customers domiciled in Burma, Russia and Philippines have been classified as high risk clients.

While the new guidelines are applicable for new accounts, existing customers whose accounts stand at Rs10 lakh and above during the past 12 months will attract KYC review.
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