Rupee sheds 22 paise
Mumbai: The rupee closed weaker by 22 paise on Tuesday to end at 46.0450/0550 against the dollar. It had closed at 45.82/84 on Monday.
Forwards Market: The six-month forward closed at 1.16 per cent (1.33 per cent), while the twelve-month forward closed at 1.06 per cent (1.53 per cent).
G-Secs: The ten-year benchmark 7.37 per cent 2014 paper yielded 5.70 per cent at the end with a closing price of Rs 112.45. The 8.07 per cent 2017 paper closed at Rs 118.26/27.
Call Rates: Stable at 4.25-4.50 per cent.
Back to News Review index page  

RBI tightens investment norms for Banks and FIs
Mumbai: According to the RBI, investments of banks and financial institutions (FIs) in various instruments such as equity shares, preference shares eligible for capital status, subordinated debt instruments, hybrid debt capital instruments and any other instrument approved as in the nature of capital will now be included in the prudential limit of 10 per cent of the investing banks/FIs' capital funds.

Hitherto, a bank's aggregate investment in Tier II bonds issued by other banks and financial institutions was permitted up to 10 per cent of the investing bank's capital funds (Tier I plus Tier II capital). Banks/ FIs, which currently exceed the specified limits, can apply to the Reserve Bank of India within 45 days along with a definite roadmap for reduction of the exposure within prudential limits, said the central bank in a circular issued to chief executives of all scheduled commercial banks and FIs, excluding regional rural banks. Banks/FIs should not acquire any fresh stake in a bank's equity shares, if by such acquisition, the investing bank/FI's holding exceeds 5 per cent of the investee bank's equity capital, said the circular.

Investments in the instruments issued by banks/Fis, such as equity shares, preference shares eligible for capital status, subordinated debt instruments, hybrid debt capital instruments and any other instrument approved as in the nature of capital which are not deducted from Tier I capital of the investing bank/FI, will attract 100 per cent risk weight for credit risk for capital adequacy purposes, according to the circular.
Back to News Review index page  

NHB refinancing up at Rs 3,523 crore
New Delhi: The National Housing Bank (NHB) has recorded refinance disbursement of Rs 3,253 crore for the year ended June 30, 2004, a 20 per cent rise over the previous year's disbursements of Rs 2,710 crore. Out of the Rs 3,253 crore, Rs 1,701 crore was disbursed towards Golden Jubilee Rural Housing Finance Scheme (GJRHFS), a scheme introduced in 1997-98. Rural housing accounted for 52.28 per cent of the annual refinance disbursements. Its net NPAs continued to be nil on June 30.
Back to News Review index page  

Max NY Life to tie up with banks for bancassurance
Pune: Max New York Life is in talks with a number of large banks in order to develop its business through the bancassurance route. The company, which is now revving up its bancassurance business, will look at large banks with larger market penetration. The company is also looking at developing its bancassurance business through relationships with small banks for which it will provide customised products, The company said that it has crossed the three lakh mark in the number of policies sold, garnering Rs 12,000 crore in sum assured in the process.
Back to News Review index page  

Dhanalakshmi Bank to outsource ATM operations
Kochi: Dhanalakshmi Bank has said that it would completely outsource its ATM services and requirements from Euronet Services India Ltd. Euronet would provide the bank asset management services, which would include procurement of ATMs, VSAT, UPS, air-conditioners and ATM site construction, for which the bank would only make monthly service charges. Euronet would also manage the entire ATM backbone, network installation and management. SEuronet has just completed its first full year of operations in India.
Back to News Review index page