Rupee up marginally - bonds firm
Mumbai: The rupee closed marginally stronger against the dollar on Wednesday, ending at 46.33, against its previous close of 46.35.
Forwards Market: The six-month premium ended at 2.05 per cent (2.10 per cent), while the one-year premium ended at 1.85 per cent (1.82 per cent).
G-Secs: Recorded gains of around 50 paise across maturities. The 7.37 percent 2014 was dealt up to Rs.110.50, while the 12.32 per cent 2011 was traded up to Rs.130.05.
Call rates: Below 4.50 per cent levels in the inter-bank market.
CBLO: 117 trades were conducted amounting to Rs.4, 342.8 crore at rates ranging between 4.06 per cent and 4.52 per cent.
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RBI favours old pvt banks consolidation
Mumbai: According to Ms K.J. Udeshi, Deputy Governor, Reserve Bank of India, mergers and acquisitions in the banking sector are going to be the order of the day as demonstrated by the successful mergers of HDFC Bank and Times Bank, Standard Chartered and ANZ Grindlays.

"We are also looking for such signs in respect of a number of old private sector banks, many of which are not able to cushion their NPAs, expand their business and induct technology due to limited capital base," she said.

The banking sector is moving away from a regime of "large number of small banks" to "small number of large banks", the new era is going to be one of consolidation around identified core competencies, she added.

The Finance Minister, Mr P. Chidambaram, also recently said that the Government is in favour of consolidation in the banking industry to enable banks achieve 'world-class' status.

According to Ms Udeshi, the future may usher in large banking institutions, if the development financial institutions opt for conversion into commercial banking in line with the recommendation of the Second Report of the Narasimham Committee.
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United India net up 122 per cent
Chennai: The United India Insurance company has recorded a profit after tax of Rs.380.45 crore in 2003-04, up 122 per cent over the previous year's profit of Rs.170.99 crore.

The company's directors have declared a dividend of 30 per cent. Income from investments amounted to Rs.904 crore (Rs.613 crore). The average yield on investment was 9.95 per cent (9.72 per cent).

Gross premium stood at Rs 3,063.47 crore (Rs.2, 969.63 crore). Net premium (after reducing premium shared with re-insurers and others) was Rs.2, 151.36 crore (Rs.2,092.42 crore).

The company also registered an underwriting loss of Rs.511 crore during the year under review.
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