|
Bonds
crash
Mumbai: The rupee fell sharply from early highs
on back of huge dollar demand to close at 46.42/43 per
dollar on Monday, weaker by about five paise from Friday's
close of 46.3750.
G-Secs: Prices plunged by over a rupee on Monday
as yields rose to their highest in eighteen months, as
the Government debt sale had higher than expected yields
amid fears of rising interest rates. The yield on the
10-year benchmark 7.37 per cent 2014 paper rose to 6.48
per cent, up 20 basis points from Saturday's close. The
price on the security fell about Rs.1.50 as it plunged
to Rs.106.35.
Back
to News Review index page
RBI
freezes operations of South Indian Co-op Bank
Mumbai: The Reserve Bank of India on Monday froze
all operations of The South Indian Co-operative Bank Ltd.
It allowed depositors to withdraw a sum not exceeding
Rs.1,000 from the Mumbai-based urban co-operative bank.
The bank is not allowed to advance any fresh loans. In
a statement issued on Monday, the RBI said as at the close
of business on August 9, 2004, "Withdrawal is allowed
for depositors up to a sum not exceeding Rs.1,000 of the
total balance in every saving bank or any other deposit
account by whatever name called," RBI said.
Renewal
of the existing term deposits on maturity in the same
name and same capacity is permitted, said the release.
Relaxation of the directive will be considered on review.
As news of the bank's ailing financial status spread,
anxious customers thronged its branches and withdrew deposits
en masse. The alarm bells were sounded when the bank released
its balance sheet a few days ago, which showed staggering
losses to the extent of Rs.35.84 crore in the financial
year ended March 31, 2004, against a profit of Rs.1.02
lakh in the previous year.
During this period, the gross and net NPAs of the bank
zoomed to 53.76 per cent and 51.70 per cent respectively,
against the gross and net NPAs of 9.81 per cent and 4.33
per cent in the previous period. The bank's networth was
eroded by Rs.1,018.34 lakh even as its capital adequacy
ratio slipped to - 17.52 per cent. RBI ranked the bank
at 'D' for its audit classification, which is reflective
of the bank's poor financial health. Raghavan Sarathy,
Chairman, The South-Indian Co-operative Bank, in turn
has blamed the "reckless reports" in the media
for the mass panic of the depositors. He claimed that
the bank's liquidity position was very comfortable and
that it will be able to meet the needs of the depositors.
Back
to News Review index page
HDFC
Bank to hike capital market exposure
Mumbai: The HDFC Bank has said that it has applied
to the RBI for increasing its capital market exposure
limits from the current five per cent.
Speaking on capital market exposure of banks, the bank
said that it's exposure was within the current limit of
5 per cent of loans outstanding at the end of the previous
fiscal. According to the bank, the default rate for the
business in this area has been less than one per cent.
The bank also plans to increase its network to 400 branches
by the end of this fiscal.
Back
to News Review index page
Nabard's
refinances KSCARDB
Thiruvananthapuram: The Regional Office of Nabard
here has released schematic refinance to the tune of Rs.15.29
crore to the Kerala State Cooperative Agricultural and
Rural Credit Bank (KSCARDB).
An official spokesman said here that, of this, Rs.9.47
crore was directed to the rural housing sector while the
rest would go into various non-farm sector activities,
including road transport operators. The applicable rates
of interest ranged from 5.5 per cent to 6.5 per cent per
annum.
Back
to News Review index page
Lord
Krishna Bank joins RTGS
Bangalore: Lord Krishna Bank has joined the real
time gross settlement systems of the Reserve Bank of India,
a bank news release said.
Back
to News Review index page
|
