Bond prices crash
Mumbai: The domestic currency ended at 46.35/37 per dollar, fairly unchanged from the previous closing levels.
G-Secs: Bond prices crashed by a rupee across maturities consequent to the Reserve Bank of India fixing higher than expected yield in its auction on Wednesday. A yield of 5.53 per cent was fixed on the 6.18 per cent 2005 paper auctioned for Rs.5, 000 crore. The yield on the 10-year benchmark, the 7.37 per cent 2014 paper rose 8 basis points to close at 6.53 per cent. The 11-year benchmark fell to Rs.106.00 from the day's high of Rs.106.90.
Forwards Market: The six-month forward closed at 2.74 per cent (2.75 per cent) while the 12-month forward ended at 2.42 per cent (2.5 per cent).
Call Rates: At about 4-4.50 per cent
Back to News Review index page  

RTGS: Small value transactions may be costlier
Mumbai: Banks may levy higher transaction charges on low-value transactions conducted on the Real-Time Gross Settlement System (RTGS). Transactions that have bulkier volumes are likely to cost less, according to banking sources.

The costs that have been invested in terms of technology and infrastructure for implementing this system will eventually have to be recovered but initially the system will be promoted for free.
Small-value transactions will work out to be more expensive for the bank as in the RTGS system, the higher the volumes, the better the cost. Therefore eventually, smaller value transactions may attract a higher transaction cost for the customer.

As regards security, while many banks are constantly fine-tuning their own internal systems, transactions on the RTGS, complete with digital signatures and other encryptions, will be secure.
Back to News Review index page  

Rs.2, 000-crore T-bill cut-off price at Rs.94.89
Mumbai: The cut-off price for the Rs.2, 000-crore 364-day treasury bill auction was fixed at Rs.94.89, while the cut-off yield on paper came in higher at 5 per cent. The number of competitive bids received was 63 (worth Rs.1, 876 crore). Of these, 59 bids were accepted.

For the Rs.2, 000-crore 91-day Treasury bill auction, the cut-off price was fixed at Rs.98.79. A total of 74 competitive bids worth Rs.3, 271 crore were received, of which 46 were accepted. The partial allotment percentage for the auction came at 74.14 per cent.

The yield at the auction of Rs-5,000-crore, 6.18 -per cent Government stock was fixed at 5.53 per cent, higher than market expectations of 5.25 per cent. The cut-off price was fixed at Rs.100.64. The number of competitive bids received was 125 for the amount of Rs.5, 580 crore, of which 114 bids were accepted. The partial allotment percentage was at 40 per cent.
Back to News Review index page  

Andhra Pradesh to float NRI bonds
Hyderabad: The Andhra Pradesh government will float bonds to raise Rs.2, 500 crore to Rs.5,000 crore from Non-Resident Indians (NRIs) in the United States. The proceeds of the issue would be utilised for funding developmental activities in Andhra Pradesh. The Government would approach the Union Government and Reserve Bank of India to facilitate the launch of the bonds. Besides, the Government was in discussion with a New York-based pension fund operator and two other multi-national companies to invest in the State.
Back to News Review index page  

RBI supersedes board of South Indian Co-op Bank
Mumbai: The Registrar of co-operatives has superseded the board of the beleaguered The South Indian Co-operative bank on the recommendation of the Reserve Bank of India. According to sources, the deputy registrar, Mahindra Kalyankar, has been appointed as administrator.
Back to News Review index page  

Centurion Bank plans 2-3 branches a month
Mumbai: The Centurion Bank has said that the bank will convert its 14 marketing outlets to branches and add 2 to 3 branches per month subject to regulatory approval as part of their expansion plan. Centurion has also announced its tie-up with Bajaj Allianz Life Insurance Company to distribute the latter's bancassurance products through its branches in the country.

Bancassurance products will be offered at 46 branches and 16 extension counters from October 1 in the first phase. The distribution set-up would be expanded to 15 more branches and six extension counters in the second phase. The bank also plans to tie up with a leading equity broking firm to provide direct equity services to customers
Back to News Review index page  

IOB gold card for exporters
Coimbatore: IOB has introduced the IOB Expo Gold Card that entitles the holder access to faster sanction of credit on liberal terms including interest concession. Exporters, particularly small and medium players, will find their access to credit simplified.
Back to News Review index page  

SBT cuts interest rates for Onam
Thiruvananthapuram: The State Bank of Travancore (SBT) has reduced interest rates on home and vehicle loans during the Onam festival season.

The lower rates will be applicable to loans sanctioned between August 1 and 31, according to a statement from the bank. The interest rate for home loans with floating rates for tenures between five and 10 years will be 7.5 per cent, instead of the prevailing 8 per cent. For tenures above 10 years, the rate has been reduced to 8 per cent from 8.25 per cent during the festival period.

There will be reduction in the interest for loans for purchase of new cars. For loans repayable within 35 months, the rate will be 8 per cent against the normal rate of 9 per cent. For loans above this, the rate will be 9 per cent against the prevailing 9.5 per cent.

For two-wheelers, the reduced rate during the period will be 11 per cent, instead of the existing 11.5 per cent. The "Sahayavarsha" personal loans will be available at a reduced rate of 11 per cent during the period.
Back to News Review index page