Rupee dives to below 44
Mumbai: As a result of huge demand from foreign banks who were on a buying spree, the rupee dived by 5 paise on Tuesday, ending the day at 44.02/03 to the dollar after touching an intra-day low of 44.04/05, after having closed at 43.9725/9775 to the dollar on Monday.

It is assumed that dollar repatriation by the FIIs, was the primary reason for the run on the rupee. The scene would have been worsem, but the nationalised banks came in and sold dollars for some time to stabilise the movement.

The six-month forward annualised premium ended the day at 2.41 per cent (2.31 per cent) while the 12-month premium ended at 2.78 per cent (2.72 per cent).
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Management recast likely in IndusInd bank
Mumbai: The beleagured Hinduja family controlled, IndusInd Bank is likely to see some more changes in its management structure.

The bank is in the process of appointing two executive directors, one of whom may be designated as a joint managing director, to current incumbent Mr. K. R. Maheshwari, whose term expires in October 2001.

The development takes place at point when IndusInd is talking to some of the foreign banks to enable the Hindujas partially offload their holding from 55.8 per cent to 40 per cent, as per the Reserve Bank of India’s guidelines. The IndusInd management has tapped two to three banks with operations in both US and Europe. The bank will be finalising the partner in consultation with a management consultant or an investment banker. The process will be initiated after its AGM.

Among others consultants, PricewaterhouseCoopers (PwC) is also learnt to have pitched in for the job. PwC has recently submitted a draft report towards improving the bank’s money market operations and is now preparing a set of recommendations for the bank’s forex division.
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