Rupee at 2 month high
Mumbai: The rupee touched a two-month high on Tuesday appreciating 27 paise to breach the 46 mark to close at 45.90/91.

Forwards Market: The Six-month forward closed at 1.20 per cent (1.72 per cent) while the twelve-month forward closed at 1.14 per cent (1.55 per cent).

G-Secs: The 10-year benchmark 7.37 per cent 2014 paper closed lower at Rs.109.15. The 11-year benchmark 7.38 per cent 2015 paper ended lower at Rs.109.65.

Call Rates: In the inter-bank market were in the range of 4.35-4.50 per cent.

CBLO Market: 128 trades worth Rs.4,547.15 crore were conducted in the rate range of 4.27-4.50 per cent.
Back to News Review index page  

CRR of urban co-ops raised by 50 basis points
Mumbai: The Reserve Bank of India has raised the cash reserve ratio of urban co-operative banks by 50 basis points from the current level of 4.50 per cent.

The hike in CRR will be implemented in two stages. From the fortnight beginning September 18, CRR of UCBs will be 4.75 per cent and to five per cent from the fortnight beginning October 2. However, the effective CRR maintained by scheduled primary UCBs on total demand and time liabilities shall not be less than three per cent, as stipulated under the Reserve Bank of India Act, 1934 the bank said.

The RBI also said that with effect from the fortnight beginning September 18, the scheduled primary UCBs will be paid interest at the rate of 3.5 per cent per annum on eligible cash balances maintained with the apex bank under CRR requirement.

Currently, these banks are paid interest at the bank rate on eligible cash balances.
Back to News Review index page  
PSBs: No to divestment - Yes to mergers and access to markets
Bangalore: The Centre has ruled out any divestment in the public sector banks and sought consolidation to make them internationally competitive.

Speaking at the FICCI conference on `Global Banking: Paradigm shift', Prithviraj Chavan, Minister of State in the Prime Minister's Office, said that there would be no divestment of Government equity to 33 per cent, and that the Public sector character of the banks will be retained. However, he added, that banks will be given freedom to tap the capital markets.

In addition, he said the PSU banks would be given full managerial autonomy to build a world class banking system. Some would also be permitted to operate in the international banking markets. This was in line with the guidelines of the World Trade Organisation when the banking sector would have to be opened up.

For operating in the global markets, Chavan said, banks would have to be merged to create large sized entities. He said for building a global brand for Indian banks, it was preferable to have a few large banks than a large number of small banks. Therefore, such mergers would be encouraged among the strong banks themselves. Further, only banks that become Basel II compliant would be allowed to enter global banking markets, he said.

Chavan also noted that the IDBI, despite its conversion into a universal bank, would continue its role as the lead domestic financial institution.
Back to News Review index page  
Barclays Capital picks up 4.3 percent stake in UTI Bank
Mumbai: Barclays Capital Mauritius on Tuesday bought 4.3 per cent stake in UTI Bank through the open market.

Barclays Capital, part of the UK's Barclays Bank, has purchased 1,00,56,000 shares at Rs.134.91 on the BSE. The total value of the transaction is Rs.135.58 crore. Of these shares, Citicorp Banking Corporation sold 88.30 lakh shares at Rs.135 on the BSE.

The UTI Bank scrip closed at Rs.136.80, up 13.67 per cent, with volumes of 1.049 crore shares; on the NSE, it closed at Rs.136.40, up 13.52 per cent, with volumes of 12.81 lakh shares.
Back to News Review index page