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Rupee sheds gains - G-Secs rise
Mumbai: The domestic currency, which opened at 43.50/5150, closed at 43.5725/5825 against Friday's level of 43.55/56.

Forwards market: The 6-month premium closed at 1.35 per cent (1.28 per cent) and the 12-month premium ended at 1.23 per cent (1.20 per cent).

G-Secs: The 7.55 per cent 5-year 2010 paper closed at Rs103.78 (6.99 per cent), up from Friday's close of Rs103.65/69 (6.66 per cent YTM). The 7.38 per cent 10-year 2015 benchmark paper was dealt at Rs103.30 (6.92 per cent YTM) against Friday's level of Rs103.20/30 (6.94 per cent YTM).

Call rates: The inter bank rates closed at 5 per cent (5.05 per cent).

CBLO market: 157 trades in the rate range of 4.80-5 per cent aggregating Rs6,559 crore were realised.
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New IOB chief raises growth target for bank
Chennai: Indian Overseas Bank's new Chairman and Managing Director, T.S. Narayanasami, has raised the bar on current year's business target for the bank to Rs85,000 crore, from the previously set target of Rs77,400 crore.

Last year, the bank had achieved a total business turnover of Rs70,500 crore.

The new chief says that although the new target fixes the bar 21 per cent higher, the target was achievable.

On NPAs, Narayanasami has said that the target for gross NPAs had been fixed at four per cent, against 5.28 per cent as at the end of 2004-05.
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Centurion, Bank of Punjab agree to merge
Mumbai: The Centurion Bank and the Bank of Punjab have agreed in principle to merge. The merger will take place through a share-swap deal to be decided after due diligence.

The boards will meet again on June 29 to consider the final terms of the merger, a joint release from the banks said. Information about the share-swap ratio would be available only after the next board meeting, officials said.

While Centurion Bank has a strong presence in the West and the South, the Bank of Punjab has a strong presence in the North.
Ambit Corporate Finance is the investment banker for the merger. KPMG India and NM Raiji & Co are the independent valuers to determine the share swap ratio.

The largest shareholders in Centurion Bank are Bank Muscat (25.91 per cent); Deutsche Bank Trust Company Americas (GDR Depository) - 21.59 per cent, and Kephinance Investment Mauritius (7.6 per cent). FIIs in toto hold 12.85 per cent.

At the Bank of Punjab, the promoters have 27.02 per cent and the public 48.7 per cent.

Towards end-February, it had been announced that Nova Scotia Bank, Bharati Tele, and ICB Financial (a Switzerland-based FII) would be picking up 4.99 per cent equity each in Bank of Punjab.
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