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Rupee rangebound - securities rally
Mumbai: The rupee marginally appreciated against the dollar on Friday closing at 43.44/55. The domestic currency had closed at 43.47/48 on Thursday.

Forwards market: The six-month closed at 1.45 per cent (1.42) and the 12-month closed at 1.33 per cent (1.3).

G-Secs: In the securities market, prices rallied by 50-70 paise for the second consecutive day. The 7.38 - 10 year-2015 benchmark paper closed at Rs102.80 (7 per cent YTM), up from Thursday's Rs102.30 (7.06 per cent YTM). The 8.55-12 year-2017 paper hit a high of Rs107.10 and closed at Rs107(7.17 per cent), up from Thursday's close at Rs106.43 (7.24 per cent YTM).

Call rates: The inter bank rates closed at 5-5.10 per cent.

CBLO market: 159 trades, aggregating Rs6,8140.80 crore, in the rate range of 4.86-5.10 per cent were realised.
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RBI: RTGS system to cover 10,000 branches by 2006
Mumbai: The Reserve Bank of India has set a target for providing Real Time Gross Settlement (RTGS) coverage to 10,000 branches and 500 centres by March 2006. Currently, 4,917 branches and 500 centres have RTGS.

The RTGS system sees transactions close to Rs50,000 crore a day.

Speaking at a conference on payment systems organised by Banknet India, Dr R.B. Barman, Executive Director, RBI, said that the central bank was addressing the issue of connectivity of payment channels across the country. With the `National Electronic Fund Transfer Extended', ninety per cent of transactions will be covered, he said.

The central bank also plans to introduce an automated clearing-house system, a pilot project in Mumbai by mid-August wherein the transaction time will be reduced. T+2 will be converted to T+0 for settlement and credit, and T+1 in the case of returns.

Dr Barman, in his keynote address, said that India has developed a payment system in a fragmented way. There is a lack of shared network facility among ATMs and much of India remains outside the modern system of payments, he said.
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RBI asks for rupee benchmarks for interest rate derivatives
Mumbai: The Reserve Bank of India has asked banks, financial institutions and primary dealers to use rupee benchmarks for interest rate derivatives but has offered a transition period of six months towards the use of MIFOR as a benchmark.

RBI had allowed these market participants to use forward rate agreements and interest rate swaps in 1999 to allow them to manage and control risks arising from deregulation of interest rates.

However, RBI had allowed some of these market participants to use LIBOR as a benchmark as rupee benchmarks were still to develop and find wide acceptance.

"Over the years, the depth and liquidity in the money markets have increased following the limits placed on call money, development of inter-bank term deposits, market repos, CBLOs, CPs, CDs and increased issuance and activity in treasury bills," RBI said.
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SBI chief: Interest rates to remain stable
Kolkata: The State Bank of India (SBI) Chairman A K Purwar has said that interest rates were likely to remain stable in the short term. Announcing the bank's financial performance Purwar said that there would not be any sharp drop in the rates, adding that everything depended on how international crude prices fluctuated.

He said that government borrowings would not have much impact on the interest rates. The SBI Chairman said that rates were likely to be stable at seven per cent in the short run.
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Banking Results: SBI, Iffco-Tokio, Bank of Baroda, Dena Bank
SBI Q4 net profit jumps 22 per cent
Mumbai: India's largest bank, the State Bank of India has posted a profit growth of 22 per cent on the back of a big jump in core lending operations, reducing its dependence on treasury incomes.

Operating profit of the bank during 2004-05 stood at Rs10,990.36 crore as compared to Rs9,553.46 crore in 2003-04, recording a growth of 15.04 per cent. SBI's profit from sale of investments was lower at Rs1,775.30 crore during the year.

Non-interest income other that profit from sale of investment grew by 17.75 per cent from Rs4538.99 crore in 2003-04 to Rs5344.60 crore in 2004-05. Net interest margin was 3.39 per cent in 2004-05 as against 3.04 per cent in the previous year.

The bank hopes to maintain at least a 23 per cent loan growth and continue its expansion.

Iffco-Tokio net rises 53 per cent
New Delhi: Iffco-Tokio General Insurance Company has reported a 53 per cent growth in net profit at Rs14.72 crore. The private insurance company has also announced a dividend of 6 per cent.

The company had reported a net profit of 9.58 crore and premium income of Rs322 crore in 2003-04. The 74:26 joint venture between Iffco and Tokio Marine Nichido Fire of Japan said it is actively considering infusing additional capital in this fiscal.

At present, the private insurer has a capital base of Rs100 crore, which is likely to go up this fiscal.

BoB net down 35.24 pc in Q4
Mumbai: The Bank of Baroda (BoB) has recorded a net profit of Rs101.04 crore for the fourth quarter of 2004-05, a 35.24 per cent fall from Rs156.02 crore in the same period last year, due to provision for shifting of securities to held-to-maturity (HTM) category.

Total income for the fourth quarter was Rs2,028.95 crore (Rs2,053 crore), while net interest income was Rs879.67 crore (Rs628.18 crore). Net profit for the financial year 2004-05 fell by 35.24 per cent to Rs676.84 crore from Rs967 crore in 2003-04. The total income for the year was Rs7,736.24 crore (Rs7,866.08 crore).

Net interest income was Rs2,979.27 crore (Rs2,571.59 crore). The bank declared a dividend of Rs3.2 for the share of face value of Rs10.
The profit from sale of investments fell from Rs985 crore last year to Rs535 crore this year. The capital adequacy ratio was at 12.61 per cent (13.91 per cent). Net NPAs were at 1.45 per cent (2.99 per cent). The bank said the net profit in FY-05 was down due to provision of Rs738 crore for shifting securities worth Rs8,416 crore from available- for-sale (AFS) to held-to maturity (HTM).

Dena Bank Q4 net loss at Rs.39 crore
Mumbai: The Dena Bank recorded a net loss of Rs39.20 crore for the fourth quarter ended March 31, against a net profit of Rs58.39 crore in the year-ago period due to fall in profits on sale of Government securities and provision for wage revision.

Total income for the same period was Rs493.07 crore (Rs619.01 crore). Net interest income was Rs188.46 crore (Rs142.35 crore). For the financial year 2004-05, Dena Bank posted a profit of Rs61 crore (Rs230.5 crore). Net interest income was Rs686.59 crore, up 10.26 per cent (Rs592.27 crore). Capital adequacy ratio rose to 11.91 per cent from 9.48 per cent. Net NPAs fell to 5.23 per cent of net advances (9.40 per cent). The net interest margin increased from 2.94 per cent to 3.08 per cent. Earning per share was Rs2.82 (Rs11.14).

The bank has also shifted 15 per cent of the securities held under the SLR to the HTM category and may shift more to shield from market risk.
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