Call rates zoom as rupee stays steady
Mumbai: The rupee closed the day at 45.80/81, a shade stronger than the previous close of 45.8425/8500 per dollar on Monday.

Forwards Market: The six-month forward closed at 2.55 per cent (2.52 per cent) and the 12-month forward finished at 2.09 per cent (2.13 per cent).

Call Rates: Touched highs of 4.95 per cent before settling to close in a range of 4.7-4.8 per cent.

G-Secs: The 7.38 per cent 2015 paper closed at Rs104.55 at a yield of 6.78 per cent. The 6.65 per cent 2009 paper settled at Rs101.45.

CBLO Market: 150 trades were transacted worth Rs4,337.80 crore in the range of 4.56-4.8 per cent.
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Cheque Clearing System to close from Nov.1
Mumbai: Inter bank Cheque Clearing System in Mumbai will be closed from November 1 as it has become redundant with the introduction of the Real Time Gross Settlement system, the Reserve Bank of India said in a notification to banks today.
However, the banks, which are not eligible to become RTGS members due to their non-scheduled status or banks that do not wish to become a Type `A' member of RTGS would have a few options available to them.

The eligible banks can become an RTGS type `C' member and route their inter-bank transactions through a type `A' member. Banks can send their inter-bank transactions as a customer of a type `A' RTGS member; and banks may also use the High Value Cheque Clearing System for settling their inter-bank transactions, said the release.
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Derivatives management award for ICICI Bank
Mumbai: ICICI Bank has been presented the 'India's Derivatives House of the Year, 2004' award by AsiaRisk, a HongKong-based financial journal.

The bank has been recognised for best practices and innovation in derivatives and risk management and for responding to clients needs.
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UCO Bank Q2 net at Rs141 crore
Kolkata: UCO Bank has posted a net profit of Rs141 crore during the second quarter of the current fiscal. The bank recorded a 29-per cent increase in net interest income over the corresponding period of the previous year.

For the half year ended September 30, 2004, it recorded an operating profit of Rs512 crore compared with Rs490 crore posted during the corresponding previous half year, while its interest income went up from Rs1,521 crore posted during the corresponding previous half-year to Rs1,725 crore.

UCO Bank had a deposit base of Rs42,210 crore as on September 30, 15 per cent higher than the deposit one year ago. Its advances during the same period went up by 32 per cent to Rs28,803 crore. The total business increased by about 20 per cent to Rs65,013 crore.

The bank's net NPA ratio has also come down to 3.09 per cent.
UCO Bank, is also considering a possible merger with another institution and has engaged consultants for the purpose.
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Union Bank Q2 net up 24 per cent
Mumbai: The Union Bank of India has achieved a 24.12 per cent growth in net profit at Rs210.68 crore for the second quarter ended September 30, 2004, as against Rs169.87 crore in the corresponding period of the previous year.

Total income of the bank grew to Rs1,354 crore during the second quarter as against Rs1,285 crore. Interest income grew to Rs1,193 crore (Rs1,082 crore) while other income fell to Rs161 crore (Rs202 crore).

For the half-year ended September 2004, the bank recorded a net profit of Rs421 crore (Rs325 crore). Provisions and contingencies aggregated at Rs166.46 crore (Rs131.59 crore).

The ratio of net NPA to net advances was at 2.06 per cent (4.39 per cent). Gross NPAs were at Rs2,167.67 crore (Rs2,333.65 crore) and net NPAs were at Rs703.11 crore (Rs1161.61 crore).

Total deposits were at Rs 55,653 crore (Rs 46,761 crore) and total advances at Rs 35,591 crore (Rs 27,653 crore). The bank's loans to the infrastructure sector has also doubled to Rs2,712 crore (Rs 1,359 crore).
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State Bank of Mysore Q2 profits dip in Q2
Bangalore: State Bank of Mysore profits dipped 19.11 per cent during the quarter ended September 30, on lower income of Rs343.37 crore compared to Rs365.79 crore in the first quarter of the fiscal.

The lower income and profits arise mainly from a substantial drop in `other income' due to reduced profitability of securities transactions.

The bank recorded an increase in the second quarter income to Rs 343.37 crore (Rs 338.86 crore). Profits fell to Rs 42.89 crore (Rs 44.98 crore). Operating expenses went up to Rs 97.92 crore (Rs 88.11 crore).

Toptal deposits stood at Rs 11,593 crore, and personal deposits at Rs 6,108 crore, accounting for 53 per cent of aggregate deposits. Cost of deposits declined from 5.71 per cent in March `04 to 5.13 per cent in September '04.
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LIC Housing Finance launches optional rate loan
Mumbai: LIC Housing Finance Ltd has introduced a new product that starts as a fixed rate loan but contains an option to convert it to a floating rate loan at the end of five years, at the then prevailing rate.

Under this scheme LIC Housing Finance is offering loans to individuals at a fixed rate of 8 per cent for a 20-year-loan. Corporate clients can avail of a 20-year loan at a fixed rate of 7.75 per cent, said a news release from the company.
The current floating rate is 7.5 per cent for individuals and 7.25 per cent for corporates.
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UTI MF ties up with HDFC Bank for its products
Mumbai: UTI Mutual Fund has announced a strategic tie-up with HDFC Bank whereby HDFC Bank will now offer the entire bouquet of UTI Mutual Fund's products to its high net worth individuals, corporate and retail clientele.

This is the seventh tie-up that UTI MF has signed with banks for distribution of products.
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Citigroup to acquire ABN Amro's domestic custody businesses
Mumbai: Citigroup Inc will soon acquire ABN Amro's direct custody, securities clearing and fund services business in the European and Asian markets.

The transaction includes ABN Amro's domestic custody business in the Netherlands and its network domestic custody business in Russia, Greece, India, Indonesia, South Korea, Poland and Taiwan, servicing approximately 550 financial institutions and corporate accounts, according to a press release.

`Domestic custody' provides a range of securities-related services including safekeeping and settlement, reporting, corporate actions, dividends collection and distribution, proxy voting, tax reclaim services, fund administration as well as providing market news and information.
With the acquisition, these ABN Amro businesses will join the Global Transaction Services unit (GTS) in Citigroup's Global Corporate and Investment Banking Group, it said.

GTS is one of Citigroup's publicly reported business units.
The deal, which is likely to be completed in the next three months, is expected to add around $240 billion worth of assets under custody to GTS's $7-trillion custody portfolio, the release said.

Over time, Citigroup will combine ABN Amro's domestic custody operations with its current GTS operations. ABN Amro's operational and servicing staff and management will become members of the Citigroup organisation.
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