Rupee, gilts fall on rising oil prices
Mumbai: The rupee slipped to 43.72/73 against the US dollar, lower than Friday's close of 43.65/66 on dollar buying.

Forwards market: The 6-month premium closed at 1.48 per cent (1.56) and the 12-month premium closed at 1.32 per cent (1.37).

G-Secs: The bond prices fell by around 40 paise, as fears of oil prices affecting inflation loomed large. Inflation for the week ended Friday was 5.30 per cent. The 7.38 per cent 10-year benchmark paper closed at Rs105.00 (6.71 per cent YTM) on Monday, against Friday's close of Rs105.43 (6.65 per cent YTM).

Call rates: closed at 4.85 per cent.

CBLO market: 150 trades aggregating Rs5,443.35 crore were put through in the rate range of 4.70 to 6 per cent.
Back to News Review index page  

Allahabad Bank pays Rs.35 crore interim dividend
Kolkata: The Allahabad Bank has issued a cheque for Rs35 crore as interim dividend for 2004-05 to the Government, its largest shareholder with a 71.16 per cent stake.

Earlier, the Allahabad Bank board had announced a 15 per cent interim dividend to be paid for the current fiscal.
Back to News Review index page  

ARCIL buys out Rs12,000 crore worth of NPAs
Mumbai: The Asset Reconstruction Company India Ltd (ARCIL) has thus far acquired more than 200 non-performing assets (NPAs) amounting to Rs12,000 crore worth of dues payable by the borrower. For ARCIL, the acquisition cost for the assets has amounted to Rs2,500 crore.

The Asset Reconstruction Company India Ltd was established with the objective of acquiring NPAs from financial institutions and banks towards 'focused management of these assets and maximisation of recovery', and is also the first company to commence asset reconstruction business in India.

ARCIL officials elaborated on the company's methods, and said that they acquire an asset at sustainable debt levels. The company would also consider restructuring as an option, only if the borrower was serious and if the unit went bad because of external factors other than bad management.

Commenting on the issues of payment of high stamp duty, which ranged as high as between 8 and 14 per cent in some States, making the acquisition of stressed assets unviable, officials said that the duty in many States such as Tamil Nadu, Madhya Pradesh and Uttar Pradesh had been brought down to nominal levels of less than one per cent.
Back to News Review index page