Rupee weakens
Mumbai: The rupee declined by 14 paise against the dollar. There was speculation that the RBI was buying dollars to curb its appreciation. The domestic currency opened at 40.54/56 and saw an intra-day low of 40.72 to end the day at 40.66/67 down from the previous close of 40.52/53.

In forwards, the six-month premia closed at 2.68 per cent (2.42 per cent) while the 12-month closed at 2.76 per cent (2.62 per cent).

Bond prices: Bond prices fell by around 20 paise on profit booking. Total traded volumes on the order matching system were Rs2,760 crore (Rs1,900 crore).

Market participants were also closely monitoring the outflow of excess cash from the system. Sources said there have been outflows of around Rs20,000 crore due to Government security auctions, Market Stabilisation and Treasury bill auctions this week. In the second half of June, advance tax outflows of around Rs30,000 will drain additional liquidity from the system.

G-secs: The 8.07 per cent-10 year-2017 paper opened at Rs99.69 (8.11 per cent YTM) and closed at Rs99.55 (8.14 per cent YTM), against Tuesday's close at Rs99.84 (8.09 per cent YTM).

The 7.49 per cent-10 year-2017 paper opened at Rs95.49 (8.16 per cent YTM) and closed at Rs95.32 (8.19 per cent YTM), against the previous close at Rs95.33 (8.16 per cent YTM).

Call rates: Call rates closed at 0.2-0.3 per cent today against the previous close of 0.3-0.5 per cent. The Reserve Bank of India received bids worth Rs1,09,525 crore through the reverse repo window in the two sessions of the Liquidity Adjustment Facility. The central bank did not receive any bids through the repo window.

Reverse repo: In the first one-day reverse repo auction, the RBI received 41 bids for Rs67,785 crore while it accepted Rs2,000 crore. In the second one-day reverse repo auction, the RBI received 37 bids for Rs41,740 crore while it accepted Rs1,000 crore. There were no repo bids in the first and second one-day auctions.

CBLO: The CBLO market saw 181 trades aggregating Rs14,740.2 crore in the 0.01-0.5 per cent range.
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Sundaram BNP Mutual ties up with Saraswat bank
Mumbai: Sundaram BNP Paribas Mutual Fund has entered into a tie-up with The Saraswat Co-op Bank to form a distribution alliance. Saraswat Bank will distribute the entire bouquet of Sundaram BNP Paribas Mutual schemes across its 105 fully computerised branches and 13 extension counters across major business cities in the country. This tie-up would provide an opportunity to the bank's customers to invest into Sundaram BNP Paribas Mutual schemes at all Saraswat Bank branches.
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LIC to subscribe to UTI Bank pref issue
Mumbai: Life Insurance Corporation of India (LIC) is likely to subscribe to the UTI Bank's preferential offer of equity shares so that the promoters' stake remains unchanged after the bank's planned $600 million global depository receipts (GDR) issue.

The GDR issue comprises 15 per cent of the post-issue paid-up capital of the bank and to ensure that promoters maintain their stake, UTI Bank has decided to offer about 3.19 crore shares on a preferential basis to the Specified Undertaking of the Unit Trust of India (SUUTI), LIC and General Insurance Corporation (GIC). The promoters have the option of not subscribing to the preferential allotment.

LIC currently holds 10.38 per cent stake in UTI Bank. The bank will offer around 76 lakh shares to LIC to maintain its shareholding in the bank at the current 10.38 per cent. At the current market price of Rs575.85, LIC will have to invest around Rs450 crore.

SUUTI is the largest shareholder in UTI Bank with 27.43 per cent stake but has not yet decided on the preferential offer.
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BFSI sector to invest over $3.5bn by 2010: Report
Mumbai: According to a recently-released Skoch Consultancy report banks and financial institutions in India are expected to invest more than $2 billion (Rs8,200 crore) by December end to upgrade their information technology (IT) infrastructure -- an 18 per cent increase over last year's spend of $1.7 billion.

By 2010, this figure is expected to touch around $3.5 billion. The areas include customer relationship management (CRM), human resources management (HRM), business intelligence (BI) and data mining kind of applications and services, the report said. The spend on core banking software packages, on the other hand, registered a slower growth last financial year. It grew lower than 10 per cent while still accounting for more than 50 per cent of packaged software spending of $263 million (around Rs1,080 crore) in 2006-07.
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Oracle launches back-office tool for coop banks
Hyderabad: Oracle has launched a complete back-office solution for cooperative banks in India.

Oracle plans to offer affordable IT solution to all categories of cooperative banks, with the help of Oracle-certified partner EBX Online, including community banks, credit unions, urban and rural cooperative and agricultural banks.

As part of this initiative, Oracle plans to set up a Cooperative Banking Centre of Excellence in partnership with EBX Online.
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