Rupee up four paise
Mumbai: The domestic currency gained about four paise on Tuesday to end at 46.35/36 against the dollar.
Forwards Market: The six-month forward closed at 2.75 per cent (2.7 per cent), while the 12-month forward ended at 2.5 per cent (2.39 per cent).
G-Secs: The 7.37 per cent 2014 paper closed at Rs 106.5/10, a net rise of over 35 paise from previous close.
Call rates: In the range of 4.4-4.5 per cent.
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Chidambaram to review farm loans
New Delhi: The Finance Minister, P. Chidambaram, has decided to review the 2004-05 agricultural lending programme of public sector banks in a meeting to be held at Delhi on September 9. The meeting has been called in the wake of the policy package announced by the Finance Minister on June 18 for doubling the flow of agriculture credit in three years and to increase the flow of agriculture credit by 30 per cent during the current financial year. Commercial banks have been asked to set bank-wise and State-wise targets and to ensure adequate flow of agriculture credit to meet the targets set under the package.

A review of the performance of banks for 2003-04 by the Finance Ministry has shown that only seven public sector banks and three private sector banks have achieved the 18 per cent target set for agriculture lending for the year. These banks are Allahabad Bank, Indian Bank, Indian Overseas Bank, Punjab National Bank, State Bank of Indore, State Bank of Patiala and State Bank of Saurashtra in the public sector and Ganesh Bank of Karudwadi, ICICI Bank and SBI Commercial Bank in the private sector.

A Finance Ministry release said that although the amount of outstanding advances to agriculture in absolute term has increased, both in public sector and private sector banks during 2003-04, the outstanding agriculture advances of the public sector banks as on March 31 was Rs.86, 681 crore constituting 15.58 per cent of the net bank credit as against Rs.73,507 crore and 14.8 per cent respectively during 2002-03.
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1-year Rs.5, 000 crore securities auction today
Mumbai: Under the market stabilisation scheme (MSS), the Union Government has announced the sale (re-issue) of Rs.5, 000 crore worth 6.18 per cent 2005 paper to be conducted on August 18.

The issue will be conducted through a price-based auction using a multiple price auction method. The issue of a dated security with a reduced tenor of one year was decided taking into account all relevant factors, said a RBI release.
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Nabard funds for two RRBs in Kerala
Thiruvananthapuram: The National Bank for Agriculture and Rural Development (Nabard) has sanctioned short-term reference assistance of Rs.351.37 crore for 2004-05 to the two regional rural banks (RRBs) operating in the State.

While the South Malabar Gramin Bank would get Rs.226.37 crore, the North Malabar Gramin Bank will get Rs.125 crore. The assistance is meant for supporting the RRBs' lending towards crop loans to the extent of Rs.260.35 crore, and Rs.91.20 crore in working capital requirements for production and marketing activities of rural artisans, villages and cottage industries as well as for financing of weaker sections.

In addition to refinance assistance for short-term loans, Nabard also provides refinance for investment credit (term loans) granted by the RRBs, the spokesman added.
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Kotak Mahindra to add 75 branches in three years
Pune: Kotak Mahindra Bank has firmed up plans to set up 75 branches in the next three years. The bank will open its branches in Jaipur and Kochi in September before commencing operations in Coimbatore in October. The bank said that it intends to be present in 15-16 cities with full-fledged bank branches by the end of the year.
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Andhra Bank and TVS Motor tie up
Hyderabad: The Andhra Bank has entered into an alliance with the Rs 3,000-crore automobile major, TVS Motor Company, for providing easy finance to two-wheeler customers across Andhra Pradesh.

The bank would offer interest rates as low as 9.25 per cent diminishing for institutional customers and 9.75 per cent for retail customers. The bank would also offer life and health insurance free of cost to the two-wheeler customers, he added.

Andhra Bank, which has financed around 9,000 vehicles following a tie-up with Bajaj Auto so far, has fixed a target of financing around 25,000 vehicles during the current fiscal.

Two-wheelers continued to dominate the vehicular population in Andhra Pradesh and account for 66.97 per cent of the State's total vehicle population.

According to the Andhra Bank it plans to enter into many more such strategic alliances with various automobile manufacturers.
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