Rupee firm; gilts move up
Mumbai: The rupee rose ended stronger against the dollar at 45.76/77 on Wednesday. The currency had closed at 45.80/81 per dollar in the previous closing session.

Forwards Market: The six-month forward closed at 2.67 per cent (2.55 per cent) and the twelve-month forward finished at 2.12 per cent (2.09 per cent).

Call Rates: The inter-bank market rates rose as high as 5.00 per cent before settling to close at 4.70-4.75 per cent.

G-Secs: The 7.38 per cent 2015 paper closed at Rs104.65 at a yield of 6.76 per cent. The 6.65 per cent 2009 paper ended at Rs101.50 as compared to previous closing level of Rs101.45.

CBLO Market: 144 trades worth Rs4,554.35 crore were transacted in the rate range of 4.55-5.00 per cent.
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Higher cut-off at 5.20 per cent for 91-day sale
Mumbai: Higher cut-off at 5.20 per cent was set at the 91-day Treasury bill auction worth Rs2,000 crore, conducted by the Reserve Bank of India.The cut-off yield has risen four basis points since the previous auction. The cut-off price was set at Rs98.72, lower than the previous cut-off at Rs98.73.

Ninety competitive bids worth Rs4,403.50 crore were received, of which 48 bids were accepted amounting to Rs2,000 crore. Partial allotment percentage of competitive bids was at 88.67 per cent. A sole non-competitive bid was received and accepted amounting to Rs17.70. crore.
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RBI to disclose penalties levied against banks
Mumbai: As per a new directive the Reserve Bank of India has decided to disclose the details of penalty and other actions taken by it against banks. The directive, which comes into effect from November 1, also asks banks to disclose details of such penalties in the `Notes on Accounts' to the balance sheets in their annual reports.

Though RBI often levies penalties based on inspection reports on banks, this information is not always published. Recently, the central bank slapped a fine of Rs5 lakh on Citibank for flouting know-your-customer norms. In a circular issued to commercial banks, RBI said it would issue press releases giving details of the circumstances under which the penalty was imposed on a bank.

It would also give details regarding the strictures or directions issued to the banks on the basis of their inspection reports.

In the case of foreign banks, the penalty has to be disclosed in the `Notes on Accounts' to the next balance sheet for their Indian operations.
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Asset reconstruction company from ING Vysya, Corporation Bank and CDC Group
New Delhi: The UK-based CDC Group Plc is planning to set up an asset reconstruction company (ARC) in partnership with Corporation Bank and ING Vysya Bank. The Foreign Investment Promotion Board (FIPB) will study the proposal next week.

According to the proposal, CDC would hold a 48 per cent stake in the proposed company - Actis Asset Reconstruction Company Pvt Ltd - and the two Indian banks would hold a 26 per cent stake each.

However, CDC proposes to increase its stake in the ARC to 74 per cent, once it becomes permissible with future changes in the Government's policy framework. The company has sought permission to bring in foreign direct investment of Rs74 crore for this purpose.

The proposed ARC would have a capital base of Rs100 crore and would carry out asset reconstruction and management in all forms, securitisation of non-performing assets acquired and all other related activities.
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SBI adopts Core Banking System
Mumbai: The State Bank of India, which is targeting a 15 per cent reduction in transaction costs by March 2006, saw over 250 of its branches going live on Wednesday, with the centralised core-banking system (CBS). The system has been implemented by the Tata Consultancy Services, SBI's prime systems integrator for the core-banking and trade finance technology solutions.

By March 2005, 2,000 branches across the country will be brought under the CBS, covering 60 per cent of the bank's business. By 2006, the bank expects to cover 90 per cent of the business under the CBS.

The bank said that one of the biggest benefits from moving to the core-banking system was that the transaction costs would be considerably reduced, by around 15 per cent to begin with, but much more eventually.

The CBS solution set being implemented includes BANCs from Financial Network Solutions, Eximbills from China Systems interfaced to each other and the existing legacy solution.

After the full implementation, the CBS will be capable of handling 100 million customers, 1,00,000 users and 25 million transactions a day, officials said.
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ICICI Bank to deploy TBMS-F software
Mumbai: ICICI Bank has signed a deal with SunTec Business Solutions Private Ltd to deploy the Transaction Business Management System - Finance (TBMS-F) software.

This software is designed for the corporate banking division of the bank and will be used for providing personalised service to its corporate clients, said a release.

Discounts will be given to customers based on volume of transactions.
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SBT H1 net up marginally at Rs.118 crore
Thiruvananthapuram: The State Bank of Travancore (SBT) has recorded a net profit of Rs118.10 crore in the first six months of the current financial year ended September 30, as against Rs115.45 crore posted during the same period last year.

The gross profit during the period went up to Rs467.40 crore from Rs433.82 crore in the first half of the previous year, according to a statement from the bank.

An increase of Rs101.14 crore was posted in net interest income, which touched Rs414.27 crore. It represents a rise of 32.30 per cent over the same period last year.

The capital adequacy ratio at 11.06 per cent was above the benchmark of nine per cent stipulated by the Reserve Bank.

The net non-performing assets of the bank, which stood at 1.39 per cent at the end of March 2004, declined to 1.06 per cent. The bank recorded a growth of Rs1,130 crore in aggregate deposits during the first six months ( Rs792 crore).
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Corporation Bank lowers FCNR deposit rates
Mangalore: The Corporation Bank has reduced interest rates offered on FCNR (B) deposits with effect from October 20.

A bank release said that interest rate on the US dollar is 2.16 per cent per annum (previously 2.29 per cent) for a period of one year to less than two years, and 2.60 per cent (2.83 per cent) for two years to less than three years. The rate for three years is 2.93 per cent (3.20 per cent).

The interest rate on the euro is 2.05 per cent (2.11 per cent) for one year to less than two years, and 2.36 per cent (2.49 per cent) for two years to less than three years and for three years 2.62 per cent (2.76 per cent).

The respective rates for pound sterling are 4.79 per cent (4.84 per cent), 4.76 per cent (4.81 per cent) and4.77 per cent (4.85 per cent).
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