Rupee stable
The rupee traded steady against the US currency in the morning trading on Thursday.

In quiet trade at the forex market, the local currency resumed flat at 40.41/42 a dollar from overnight close of 40.41/42 a dollar.

The rupee weakened by about four paise against the dollar on Wednesday due to concerns about a loss of risk appetite among global investors prompting traders to pare their holdings.

It opened at 40.34/36 and saw a low of 40.45 before closing at 40.40/41, down from the previous close of 40.36/37.

In forwards, the six-month premia closed at 1.18 per cent (1.41 per cent) while the 12-month closed at 1.57 per cent (1.65 per cent).

Bonds: Bond prices surged by around 40-80 paise across securities of various maturities. Total traded volumes on the order matching system were at Rs16,285 crore (Rs13,485 crore).

Dealers said the excess cash in the system aided the buying sentiment and buoyed prices.

The 7.49 per cent-10 year-2017 paper opened at Rs97.74 (7.82 per cent YTM) and closed at Rs98.05 (7.77 per cent YTM) against the previous close of 97.59 (7.84 per cent YTM).

The 8.33 per cent-29 year-2036 paper opened at Rs99.90 (8.34 per cent YTM) and closed at Rs100.49 (8.28 per cent YTM), against the previous close of Rs99.76 (8.35 per cent YTM).
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SBI dividend cheque
O P Bhatt, chairman, State Bank of India, handed over a cheque of Rs440.07 crore to Dr Y V Reddy, governor, Reserve Bank of India.

The cheque represents the dividend for the financial year 2006-07 on SBI shares held by the RBI.

SBI declared a dividend of 140 per cent for the financial year 2006-2007.
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IDBI net profit rises marginally in first quarter
IDBI Ltd has reported a marginal increase of 1.32 per cent at Rs153 crore, in its Q1 net profit against Rs151 crore in Q1 last year, due to a fall in net interest income.

The results for the quarter ended June 2007 include the operations of United Western Bank (amalgamated with effect from October 3, 2006) and hence are not comparable with the results of the corresponding quarter of the previous year.

The bank says net interest income for the first quarter was down by 35.71 per cent to Rs63 crore from Rs98 crore in the corresponding quarter of the year-ago period due to the increase in the cost of borrowing and a lower yield on advances. The cost of borrowing rose to 7.75 per cent compared with 6.6 per cent in the previous year.

The net interest margin of the bank was at 0.28 per cent at the end of the first quarter (0.49 per cent).

Total income was up by 31.47 per cent to Rs 2,193 crore from Rs 1,668 crore. Other income was also higher at Rs 400 crore (Rs 285 crore). Provisions and contingencies were higher at Rs 85.7 crore against Rs 29.18 crore.

Deposits for the quarter grew by 61 per cent to Rs46,757 crore, up from Rs29,096 crore. Low-cost current account and savings account (CASA) deposits accounted for 21 per cent of the total deposits. Advances grew by 14 per cent to Rs59,772 crore from Rs52,637 crore.

Profit from the treasury portfolio fell saw a decline of 17.04 per cent to Rs 16.11 crore from Rs 19.42 crore. mainly due to lower income from derivatives.
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