Rupee hits Rs.46.47

Mumbai: The rupee fell to its lowest levels in over a year on Thursday to close at 46.47/48 against the dollar. The bond yields soared, with the ten-year benchmark touching 6.28 per cent - the highest since March 2003.
Forwards Market: The six month premia closed at 2.76 per cent (2.50 per cent), while the twelve-month closed at 2.08 per cent (1.96 per cent).
G-Secs: Bond prices crashed by about one and a half rupee with the yield on the ten-year benchmark rising to 6.28 per cent - a 17-basis point rise from Wednesday's levels. The 11-year benchmark plummeted to Rs.107.75 lower by over a rupee.
Call Rates: In the range of 4.25-4.50 per cent.
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IDBI Bank to merge with IDBI
Hyderabad: The boards of IDBI and the IDBI Bank have in principle approved the proposal to merge IDBI Bank with IDBI, thereby enabling the combined entity - the Industrial Development Bank of India - to become a universal bank. In a separate development, the setting up of a Stressed Assets Stabilisation Fund (SASF) was also approved to enable the purging of IDBI's legacy portfolio of NPAs. The trust would take over IDBI's NPAs to the extent of Rs 9,000 crore in exchange for Government of India securities.

The IDBI Chairman and Managing Director, M. Damodaran, made it clear that it was not a reverse merger as was widely presumed. Following the approvals of Parliament that came into effect from July 2, IDBI would become a deemed banking company under the Banking Regulation Act. Damodaran also stated that the valuation exercise would commence sometime next week for determining the swap ratios for the merger, with the entire process of merger being completed before the current fiscal ends.
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IDBI Q1 net dips to Rs.23 crore
Hyderabad: The Industrial Development Bank of India (IDBI) has suffered a fall in net profit on a decreased turnover for the first quarter of the current fiscal ended June 30. As per the audited financial results approved by the IDBI board the income from operations has dipped to Rs.1, 340 crore from Rs.1, 575 crore in the corresponding quarter of previous fiscal, while the net profit has slipped to Rs.23 crore (Rs.51 crore).

For the fifteen months period ended June 30, IDBI has posted a net profit of Rs.348 crore on a turnover of Rs 8,357 crore as against a net profit of Rs 401 crore on a turnover of Rs 7,481 crore in the previous fiscal (12 months) ended March 2003. With a view to avoiding the closing and balancing of its books of accounts twice over, once on March 31, 2004 and again on the `appointed date' of conversion of IDBI into a banking company, IDBI has obtained the approvals of its board and Government to extend the accounting period of financial year 2003-04 by six months up to September 30, 2004.
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Andhra Bank Q1 net up 27 per cent
Mumbai: Andhra Bank has posted a 26.5 per cent growth in net profit at Rs.150.16 crore in the first quarter of the financial year 2004-05, as against a net profit of Rs.118.67 crore in the corresponding quarter, the previous year. During this period, the net interest income grew by 34 per cent to Rs.267.90 crore (Rs 200 crore), while provisions and contingencies was lower at Rs.36.83 crore (Rs.78.94 crore).

Provisions for NPAs also declined to Rs.30 crore (Rs.85 crore), while provisions for taxes were higher at Rs.77.50 crore (Rs.55.50 crore). Gross NPAs amounted to Rs.634.13 crore (Rs.640.21 crore). Net NPAs were lower at Rs 108.81 crore (Rs 192.89 crore). Capital adequacy ratio of the bank was at 15.16 per cent (16.09 per cent).
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Karnataka Bank payout at 40 per cent
Mangalore: The Karnataka Bank Ltd has posted a net profit of Rs.38.73 crore for the first quarter of the current fiscal compared to Rs.34.74 crore during the corresponding previous period, registering a growth of 11.5 per cent.

A bank release said that the operating profit went up from Rs.112.90 crore to Rs.117.23 crore during the quarter under review. The capital adequacy ratio of the bank rose to 14.38 per cent compared to 13.03 per cent at the end of March this year. The release also said that the bank has declared 40 per cent dividend for for the fiscal 2003-04.
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Lower net for Bank of India
Mumbai: The Bank of India has posted lower net profits at Rs.162.69 crore for the first quarter ended June 30, 2004, as against a net profit of Rs.203.2 crore in the corresponding quarter, the previous year. Total income of the bank declined to Rs.1, 683.66 crore (Rs.1, 771.82 crore).
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Dena Bank net up 26 per cent
Mumbai: Dena Bank has posted a 25.75 per cent jump in net profit for the first quarter ended June 30,2004, at Rs.36.72 crore against Rs.29.20 crore in the corresponding quarter, the previous year. While the business mix has increased to Rs.29,628 crore (Rs.26,245 crore), capital adequacy ratio is at 9.97 per cent.
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