G-Secs drop - Rupee unchanged
Mumbai: The rupee closed unchanged from its previous levels, ending at 46.32 per dollar.
Forwards Market: The six-month premium ended at 2.19 per cent (2.28 per cent) and the premium for one year ended at 1.87 per cent ( 2 per cent).
G-Secs: The prices fell with the 7.37 per cent 2014 paper closed lower at Rs.109.60 at 6.06 per cent YTM, as against Wednesday's closing levels of Rs.110.30 (5.95 per cent YTM). The 7.38 per cent 2015 paper closed at Rs.109.60 (6.18 per cent YTM), as against its previous closing at Rs.110.30.
Call Rates: Easy at around 4.25 per cent levels in the inter-bank market.
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RBI allows banks to shift securities
Mumbai: Providing some relief to the commercial banks, against the hardening yields in the domestic debt markets, the Reserve Bank of India has allowed them to transfer securities in excess of the prescribed 25 per cent limit, in the Held to Maturity category (HTM).

However, the apex bank has emphasised, in a circular issued to commercial banks here on Thursday, that they may do this only when the excess comprises only of SLR securities, and when the total SLR securities held in the HTM category is not more than 25 per cent of their Demand and Time Liabilities (DTL) as on the last Friday of the second preceding fortnight.

To enable the above, as a one-time measure, banks may shift SLR securities to the HTM category any time, once more, during the current accounting year. Such shifting should be done at the acquisition cost, book value or market value on the date of transfer, whichever is the least, and the depreciation, if any, on such transfer should be fully provided for, RBI has said. The non-SLR securities held as part of HTM may remain in that category. No fresh non-SLR securities are permitted to be included in the HTM category.

The central banks latest move is in light of representations received from banks that the existing guidelines of classification of investments should be reviewed with a view to bringing them in alignment with international practices and current state of risk management practices in India, taking into account the unique requirement of maintenance of statutory reserve requirement of 25 per cent of DTL.
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Dhanalakshmi Bank to disburse Rs.51 crore in micro credit
Kochi: The Thrissur-based Dhanalakshmi Bank has set apart Rs.51 crore for micro credit disbursal for the current year. In the initial year of launch, the bank was able to extend credit to the tune of Rs.47 lakh to self help groups(SHGs). The bank now extends assistance to around 17,500 members belonging to 880 SHGs covering a total outlay of Rs.11.45 crore.

The bank had set up a Micro Credit Cell at the corporate office in 2002, to give an added thrust to lending activities under the scheme as well as to monitor its progress, a press release from the bank has said.

This has been accomplished by extending credit to Self Help Groups for various activities undertaken by its members. These activities are coordinated through micro credit Field Officers and Agricultural Extension Officers. The bank has appointed Prof. V.J. Pappoo, former Pro-Vice Chancellor of Calicut and Cochin Universities as a consultant for overseeing the overall activities. There have been no NPAs under this programme.and the recovery has been 100 per cent, the bank said. The Bank retains the number one position among Kerala-based banks in micro credit finance, the press release added.
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ICICI Bank launches 'Kisan Loan Card'
Mumbai: ICICI Bank has launched the 'ICICI Bank Kisan Loan Card', which will enable farmers to avail themselves of loans through an electronic card with easy access to withdrawal of cash through the ATMs.

The ICICI Bank Kisan Loan Card has been launched in Devarapalli in interior Andhra Pradesh in association with the Tobacco Board, Ministry of Commerce, Government of India, said a press release.

ICICI Bank said that with this Kisan Loan Card, it had leveraged technology to bring to farmers low cost loans and easy access to credit. Over 6,000 farmers affiliated to the Tobacco Board in Andhra Pradesh across four tobacco regions are expected to benefit from this card.

In addition to the cash loan through the card, the farmer can also avail himself of crop loans from ICICI Bank to procure fertilisers, seeds, pesticides, diesel etc, the release said. The bank has installed four low cost ATMs especially designed for rural India in Devarapalli, Koyyalagudem and Jangareddygudem.

These ATMs will now enable farmers to have access to money 24 hours a day through cash withdrawals as against withdrawing from the local bank branch.
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Finolex NCD gets an upgrade from Crisil
Mumbai: CRISIL has upgraded the rating of Finolex Industries Ltd's Rs.50 crore NCD issue from AA to AA+. The upward revision in the rating follows the current upturn in the poly-vinyl chloride (PVC) price cycle. Another determinant has been the cost of the Finolex PVC expansion project that has been halved from Rs.500 crore to Rs.250 crore.

The rating is supported by the company's liquid investments of over Rs.168 crore as of March 31.
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