Rupee weakens
Mumbai: The rupee closed at 45.40/41 per dollar on Wednesday, weaker by about four paise as compared with Tuesday's close of 45.36/3650.
Forwards Market: The six-month forward closed at -0.58 per cent (-0.62 per cent), and the one year forward closed at - 0.12 per cent (-0.24 per cent).
G-Secs: The 8.07 per cent 2017 paper was dealt up to 123.05. The 7.37 per cent 2014 paper closed at Rs 116.66/67. The 7.46 per cent 2017 paper closed at Rs 117.93/95.
Call Rates moved in a range of 4.10-4.50 per cent.
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RBI panel asks bankers to change mindset
Mumbai: The RBI appointed advisory committee on flow of credit to agriculture has noted the difficulties faced by banks in achieving the target of 18 per cent. According to the Committee, all public sector and private sector banks should increase their direct lending to agriculture to a level of 12 per cent of net bank credit within two years and to the level of 13.5 per cent within the next two years thereafter. Banks, which have already reached this level, may maintain or improve their position.

The most important task, the Committee feels is to change the mindset of bankers. It needs to be emphasised that all over the world, retail banking is emerging as more profitable and less risky proposition. In the Indian context, there is hardly any better avenue for retail lending than agriculture, said the report. The Committee has also recommended the setting up of an "Agri-Risk Fund" with equal contribution from the Central and State Governments and the participating banks. Such a fund, the Committee feels, would mitigate risk of the lending banks.
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Central Bank and New India tie up
Mumbai: The New India Assurance Co Ltd and Central Bank of India have entered into a bancassurance tie-up whereby the latter will distribute the insurer's non-life products through its extensive branch network. As per a Memorandum of Understanding signed here today, Central Bank of India will become the corporate agent of NIA and will distribute its non-life products through its 3,130 branches.
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Allahabad Bank to pay 20 per cent
Kolkata: Allahabad Bank has declared a dividend of 20 per cent (Rs 2 per share) for the year 2003-04. According to an official release by the bank, necessary approval for this has been obtained from the RBI. During 2002-03, the bank had declared a dividend of 10 per cent. According to the release, the EPS of the bank has jumped to Rs 13.37. Similarly, the book value per share has increased to Rs 44.76 during 2003-04, up from the Rs 33.76 per share in the previous financial year.
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