Rupee declines to touch 3-year low
Mumbai: The rupee declined to touch a three-year low of 46.75, as oil prices continued to rule high due to the political crisis in the West Asian region. The rupee opened weak at 46.46/48 and touched an intra-day low of 46.78, before ending at 46.75, 37 paise lower than the earlier close of 46.38. Analysts said the outlook for the rupee is weak and it may even touch 47 in the coming days.

Forwards: In the forward premia market, the 12-month closed at 1.16 per cent (1.13) and the six-month ended at 0.96 per cent (.98).

Bonds: Bond prices fell by around 15 paise and sentiment was bearish on Monday. Dealers said they were following a wait and watch approach until the quarterly review of the Credit Policy on July 25 and the announcement of the Rs5,000-crore auction, which will take place between July 17 and 25.

G-Secs: The 7.59 per cent-10 year-2016 benchmark paper opened at Rs95 (8.35 per cent YTM) and closed at Rs94.89 (8.36 per cent YTM), down from Friday's close at Rs95.05 (8.34 per cent YTM). The 8.07 per cent-11 year-2017 paper opened at Rs97.53 (8.43 per cent YTM) and closed at Rs97.50 (8.43 per cent YTM).

Call rates: Call rates remained unchanged between 5.75 per cent and 5.85 per cent. In the first one-day reverse repo auction under LAF, the Reserve Bank of India received and accepted 14 bids amounting to Rs13,920 crore and in the second one-day reverse repo auction, 37 bids for Rs28,240 crore. There were no repo bids.

CBLO: The CBLO market saw 303 trades aggregating to Rs16,886.65 crore in the 5.57-5.70 per cent range.
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FII limit reached in South Indian Bank
Mumbai: The Reserve Bank of India has said the FII limit in South Indian Bank has reached the limit of 22 per cent of its paid-up capital and that no further purchases of equity shares of South Indian Bank should be made on behalf of foreign institutional investment (FIIs) through primary and secondary markets in India under the portfolio investment scheme without its prior permission.
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Union Bank offers fixed deposits at NSC rates
Kolkata: Union Bank has launched a new fixed deposit scheme - Union Double - and has positioned at against the conventional investments like National Savings Certificates. Like the NSC Union Double will enable depositors to double their allocations in 8 years 9 months. The rate of interest offered is 8 per cent per annum.

The offer - annualised yield: 11.43 per cent - will be available till July 31.
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Andhra Bank to open branches across West Asia
Kochi: Andhra Bank planning to have a presence West Asia will open offices in four centres soon. The bank, which opened its office in Dubai in May, has applied to the Reserve Bank of India for opening offices in Saudi Arabia and Oman. The bank's board has also approved proposal to set up offices in Qatar and Kuwait while an office at Bahrain is also on the anvil. The bank's idea is to spread strategically in West Asia where a lot of people from Andhra Pradesh and Kerala are working.

Andhra Bank had posted a total business of Rs56,406 crore, comprising Rs33,922 crore of deposits and advances of Rs22,484 crore and had set a target of achieving a total business of Rs67,000 crore for the fiscal 2006-07 comprising Rs39,000 crore of deposits and advances of Rs28,000 crore. It also plans to open 100 branches and an equal number of ATMs in the current year.

Andhra Bank, which has reported a 208 per cent net profit from core banking operations for the financial year ended March 2006, has decided to focus on low-cost deposits during the current fiscal to sustain growth. Last year, the bank had achieved a profit of Rs485 crore. The low-cost deposit currently stood at Rs12,322 crore.
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