25 September 2004

Bonds gain - rupee rises
Mumbai: The rupee closed higher at 45.90/91 against the dollar on Friday against its previous close of 45.92 per dollar.

Forwards Market: The six-month forward closed at 1.82 per cent (1.81 per cent). The 12-month forward finished at 1.54 per cent (1.52 per cent).

G-Secs: The 11-year benchmark 7.38 per cent 2015 per cent paper closed at Rs110.25 at a yield of 6.08 per cent. The 10-year benchmark 7.37 per cent 2014 paper closed at Rs109.60 at a yield of 6.04 per cent, lower than previous yield of 6.05 per cent.

Call Rates: In the range of 4.50- 4.60 per cent.

CBLO Market: 118 trades were transacted worth Rs3,113.10 crore in the rate range of 4.45-4.75 per cent.

National Advisory Council: Health insurance proposals for the poor
New Delhi: The National Advisory Council has decided to formulate specific proposals on health insurance for the poor, community health volunteers, and health delivery systems that will be forwarded to the Government.

The meeting, chaired by Sonia Gandhi, also discussed measures to tone up the public health infrastructure and improve sanitation, as per an official statement.

The next meeting of the Council is scheduled for October 20.

New insurance cover for personal accident
Mumbai: AR Insurance Brokers Pvt Ltd and Bajaj Allianz General Insurance Company have jointly launched a low-cost personal accident insurance product.

The product called `Nischint', covers loss of life in the event of an accident and also covers all emergencies, including loss or termination of employment due to an accident or illness, a press release from AR Insurance Brokers said.

Available in three plans - silver, gold and platinum - the policy also covers loss of employment and hospital cash if the holder falls ill.

Corporation Bank to explore acquisitions
Mumbai: The Mangalore-based Corporation Bank is the latest to join the takeover bandwagon. The bank's board has passed a resolution authorising the Chairman and Managing Director to explore the possibility of acquiring other banks.

The bank also wants to protect itself from any takeover bid. In a notice to the stock exchanges, the bank said that its board discussed the issue of consolidation of the banking industry and decided that the identity of the bank should be protected, particularly in view of its comfortable capital adequacy ratio (CAR) and its inherent strength.

Corporation Bank's CAR exceeds 20 per cent, compared to the statutory requirement of nine per cent. The bank says that it is in a comfortable position to finance the kind of acquisition it is looking for even after meeting the Basel II norms.

The Government holds 57.17 per cent equity in this cash-rich bank. Among the non-promoters, LIC of India - its strategic partner - holds a sizeable 26.32 per cent stake.

At today's meeting, the board of directors of the bank also decided to go in for acquisition of credit portfolios of other banks in bulk to widen the asset base.

Corporation Bank, which has opened its 750th branch and ATM at Lower Parel in Mumbai has reported a net profit of Rs105.51 crore for the first quarter ended June 30, 2004.

24 September 2004

Rupee weakens - bonds move up
Mumbai: The rupee ended around seven paise lower at 45.92 per dollar on Thursday, as against Wednesday's closing at 45.8550/8650.

Forwards Market: The six-month premium closing at 1.85 per cent (1.82 per cent) and the one-year premium closed at 1.53 per cent (1.49 per cent).

G-Secs: The 7.37 per cent 2014 paper got dealt to Rs109.45 - 6.05 per cent YTM and the 7.38 per cent 2015 paper opened at Rs109.65 and got traded up to Rs110.20.

Call Rates: At around 4.50 per cent levels in the inter-bank market.

CBLO Market: 113 trades were transacted for Rs3,359.60 crore in the rate range of 4.40-4.70 per cent.

Centurion Bank rights 'fully subscribed'
Mumbai: The Centurion Bank has said that its rights issue totalling Rs90.80 crore was fully subscribed. The issue closed on September 22.

After the Tier I capital raised through the rights issue, the bank is planning a Tier II subordinated bond issue during this fiscal. The bonds would be issued on a need basis amounting to around Rs50 crore.

23 September 2004

Longs move up; rupee loses ground
Mumbai: The rupee shed its gains to end at 45.8550/8650 against the dollar. It had closed at 45.8350 per dollar on Tuesday.

Forwards Market: The six-month forward closed lower at 1.82 per cent (1.90 per cent) while the 12-month forward ended at 1.49 per cent (1.61 per cent).

G-Secs: The 10-year benchmark 7.37 per cent 2014 paper ended at Rs108.75, lower than the previous close of Rs108.90. The 11-year benchmark 7.38 per cent 2015 paper also fell during the day to close at Rs109.45. Meanwhile, 12.32 per cent 2011 paper rose 15 paise to close at Rs129.75.

Call Rates: Were high at 5.25 per cent in a few deals but most trades were done in the range of 4.60- 4.75 per cent.

CBLO Market: 103 trades worth about Rs2,583 crore were transacted.

Indian Bank launches loan schemes for professionals
Chennai: Indian Bank has said that it is launching four new schemes.

While the IB-BPO Finance is targeted at companies in the BPO business, the IB-Shanti Niketan offers finance to working women hostels/student hostels, run by Registered Trusts, NGOs, individuals owning property, registered firms, schools and colleges, HUFs, and individuals offering 'paying guest' facility. Under the Shanti Niketan scheme, the finance provided will be up to Rs25 lakh, with the minimum set at Rs2 lakh.

IB - Aayushman offers finance for gym/fitness centres and individuals buying such equipment.

The IB - Doctor Plus targets registered medical practitioners including Indian medicine doctors, individuals, partnerships, limited companies and trusts whose key promoters are qualified doctors.

Finance will be available under the Doctor Plus plan up to a maximum of Rs10 lakh for facilities set up in the rural and semi-urban areas and Rs15 lakh in the urban areas.

Bank of Baroda to hike capital for credit card operations
Mumbai: The Bank of Baroda plans to hike the paid-up capital of its wholly owned card subsidiary BoBCards Ltd to Rs100 crore, from its current level of Rs20 crore, to finance the company's growth strategy in a competitive environment.

BoB Cards has also slashed its service charge to 1.99 per cent from 2.25 per cent effective from October 1, 2004, which is to be further reduced to 1.49 per cent for quality card holders from April next year. In order to increase its card base, BoBCards would issue free credit cards to the bank's fixed deposit holders of Rs25,000 and above.

BoBCards plans to launch an international dollar card by the end of this fiscal, in association with either MasterCard or Visa, he said. Commenting on the delinquency rates on the company's cards, Mr Shenoy said, it was between 8-10 per cent, well below the industry average of 30 per cent.

Maharashtra appoints Yes Bank as biotech advisor
Mumbai: The Maharashtra Government has appointed Yes Bank as its advisor for the proposed life sciences and biotechnology project in the city. Yes Bank will help develop a comprehensive business and financial strategy to leverage Mumbai's strengths in life sciences and biotechnology, a company communiqué said.

The entrepreneurial bank would prepare a feasibility report in terms of what would be required to make the city a biotech hub. The bank would look at the potential of local pharma and biotech companies, besides the infrastructural requirements that the State Government would have to put in place, said an official familiar with the development.

While there is no time-frame by when the project report has to be submitted, the official said that the bank would look to complete it at the earliest, so that Government clearances could be got to begin work.

No financial estimates have been put on the size of the project, he added. The biotech project would help bring investments into the State, the note said.

22 September 2004

Rupee firms further - G-Secs move up
Mumbai: The rupee strengthened by about four paise, from its previous close of 45.87/88, to close at 45.8350 against the dollar.

Forwards Market: The six-month forward closed at 1.90 per cent (1.89 per cent) and the 12-month forward at 1.61 per cent (1.58 per cent).

Call Rates: in the inter-bank market on Tuesday moved up to 5.00 per cent, dealers said. A few quotes were also received for 5.25 per cent, with the range being 4.75 -4.95 per cent.

G-Secs: The 10-year benchmark 7.37 per cent 2014 paper ended lower at Rs108.90 at a yield of 6.12 per cent. The 11-year benchmark 7.38 per cent 2015 paper finished at Rs109.60.

CBLO market: 130 trades worth Rs4,133.85 crore were transacted in the rate range of 4.35-5.00 per cent.

RBI winds up state-level export promotion committee
Mumbai: The Reserve Bank of India has decided to wind up the State Level Export Promotion Committee (SLEPC) and constitute a separate sub-committee under the State Level Bankers Committee (SLBC) for the redressal of exporters' grievances.

According to the bank, in light of several other forum available to exporters to ventilate their grievances at the State level, it has been decided, in consultation with the Government, to wind up SLEPCs. The exporters' problems in relation to export finance and other bank related issues at the State level will now be taken up by the sub-committee of SLBC.

21 September 2004

Borrowing plan lifts bonds- rupee remains unchanged
Mumbai: The rupee finished unchanged from previous close as it ended at 45.87/88 against the dollar.

Forwards Market: closed higher as the six-month finished at 1.89 per cent (1.75 per cent) and the 12-month ended at 1.58 per cent (1.50 per cent).

The announcement of the Government borrowing programme improved the sentiment of the market, with its plans to issue bonds for Rs44,000 crore in the second half of the fiscal to March 2005, lower than the market expectation of Rs50,000 crore.

G-Secs: The 10-year benchmark 7.37 per cent 2014 paper closed at Rs108.80 with a yield to maturity of 6.15 per cent. The 11-year benchmark 7.38 per cent 2015 paper ended at Rs109.70.

Call Rates: Moved up to around 4.55 - 4.75 per cent in the inter-bank market.

CBLO market: 109 trades worth around Rs3,400 crore were transacted in the rate range of 4.49-4.70 per cent.

RBI cancels registration of NBFI Sehajpal Finance
Mumbai: The Reserve Bank of India has cancelled the certificate of registration of Sehajpal Finance & Investment from September 7 for carrying on the business of a non-banking financial institution.

Following this the company cannot transact the business of a non-banking financial institution and has also been prohibited from acceptance of deposits and alienation of assets. However, it is obliged to repay public deposits as per the terms of conditions of the contract of deposit, if any.

UTV into comprehensive policy with United India
Mumbai: United Television (UTV), along with United India Insurance Co, has structured a comprehensive insurance policy for all its productions meant for television telecast (including ad films, television serials etc.) for an annual cover.

"Given the fact that it is a path-breaking development in insurance in the media industry, the policy is called United Television Production Policy,' an official statement said.

The policy provides insurance cover to the company against risks and losses arising out of death /disability of key artistes, damage / destruction of sets /props and other material, expenses of re-shoot in case of occurrence of any such accidents which require the content to be re-shot, personal accident and hospitalisation of technicians, attendants and other personnel working on production, and public liability insurance etc.

20 September 2004

Banks to go on strike on Oct 5-6
New Delhi: Bank employees across the country would strike work on October 5-6 if the talks between United Forum of Bank Unions (UFBU) and the Indian Bank Association on September 22 fail to resolve the wage revision issue.

"Around 10 lakh bank officers and employees are expected to join the strike if the talks fail for a "favourable and increased package", said Ashwani Rana, UFBU Secretary.

The bank unions' are demanding 20 per cent increase in wages against the 9.5 per cent being offered by IBA, besides pension and appointment on compassionate grounds.

Health insurance to touch Rs.75, 000 crore
New Delhi: With lifestyle-related diseases increasing significantly, healthcare insurance sector in the country is poised to become an Rs.25, 000-crore industry by 2009 and treble itself in the next ten years, provided a right mix of targeted products are offered by the insurance companies.

The robust growth in health insurance is expected as lifestyle diseases like cancer and strokes are set to account for nearly 30 per cent of in-patient ailments and HIV infections likely to rise significantly by 2010.

These are the findings of a study done by PHDCCI to access the potential of health insurance sector in India.

Already, the healthcare sector, including service providers, payers, pharmaceutical and medical devices manufacturers, is estimated to be the Rs.75,000-crore industry by 2020.

The study said it is estimated that share of the elderly in the total population would increase to 8.9 per cent and total number of senior citizens would increase by 107 per cent to 113 million by 2016, providing immense scope for the sector's unprecedented growth.

Most importantly, health spending in India at 6 per cent of GDP is among the highest estimated for developing countries. In per capita terms, it is higher than that in China, Indonesia and most African countries.

The insurable population in India has been assessed at 250 million and if around 6 per cent against the current 2 per cent of the country's population goes in for health insurance in the next five years, estimating an average of Rs1,000 per person as the premium amount annually, it would mean a health insurance industry worth Rs25,000 crore.