Rupee up nine paise- bonds slide
Mumbai: The rupee continued its upward trend and ended the day at 44.02/03 against the dollar on Wednesday, nine paise stronger than its previous close at 44.11/12.

Forwards Market: The six-month forward closed at 1.88 per cent (1.82 per cent) and the one-year forward ended at 1.40 per cent (1.38 per cent).

G-Secs: The yield on the 7.38 per cent 2015 paper closed at 6.73 per cent at a price of Rs105.95. The 7.55 per cent 2010 paper ended lower at 6.47 per cent at a price of Rs104.85.

T-Bills auction: In the Rs2,000 crore 91-day treasury bill auction cut-off yield was set at 5.40 per cent, substantially higher than previous cut-off at 5.15 per cent.

Call Rates: in the range of 5-5.25 per cent.

CBLO market: 99 trades worth about Rs4,000 crore were transacted.
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IDBI Bank in pact with Coal Mines Provident Fund
Mumbai: IDBI Bank has announced a tie-up with the Coal Mines Provident Fund (CMPF). Through this tie-up, the bank plans to disburse pensions and provident fund payments to 1,25,000 miners all over the country.

The bank said that its online networking of branches across the country and its high-end technology, will allow the coal miners to access their pensions and provident funds without any hassle.
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Chidambaram: Mergers will help PSU banks face competition
New Delhi: The Finance Minister, P. Chidambaram, has said that a larger size would provide banks with the wherewithal to take on international competition and would also enable them to manage their risks more efficiently.

"Consolidation would allow economies of scale in terms of footprint, manpower and other resources. Having Indian banks of a larger size would also enable them to face competition arising from internationalisation of the economy. Larger size also entails better management of risk," Chidambaram said in a statement in the Lok Sabha on a calling-attention notice by the CPI member, Gurudas Dasgupta.

Dasgupta had moved the notice on various issues relating to banking policy including dilution of Government stake in PSU banks, merger of banks, and FDI in private sector banks.

The Finance Minister said that small and weak banks pose systemic risks with their low capital adequacy ratio and high non-performing assets. "Consolidation is a timely response to augment efficiency, which would lead to income generation and add to the GDP of the country," he said.
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UTI Bank decides to split CMDs post
Mumbai: The board of the UTI Bank has decided to split the post of chairman and managing director. Bank sources have indicated that Nayak, whose five-year term as CMD is slated to end on December 2004, has declined the offer.

The board meeting was convened at the behest of UTI-I, specified undertaking of UTI, which is one of the promoters of new generation bank.
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