Rupee firms up - bonds in a narrow range
Mumbai: The rupee finished a shade stronger at 43.94/95 against the dollar on Monday from its close of 43.96/97 on Friday.

Forwards Market: The six-month forward ended at 2.25 per cent (2.11 per cent) and the one-year forward finished at 1.65 per cent (1.48 per cent).

G-Secs: The 7.38 per cent 2015 paper ended at Rs104.95 at a yield of 6.73 per cent while the 7.55 per cent 2010 paper finished at Rs104.85 at a yield of 6.48 per cent.

Call Rates: In a tight range, moving between 6.00 and 6.10 per cent.

CBLO Market: 132 trades amounting to about Rs4,500 crore were transacted.
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UTI Bank board to review splitting of CMD post
Mumbai: The UTI Bank has decided to hold a board meeting to reconsider its decision to split the post of Chairman and Managing Director into non-executive Chairman and Managing Director.

According to sources, it is expected that Dr P.J. Nayak, Chairman and Managing Director, UTI Bank, whose five-year term is ending by December 31, will be offered the option of continuing as Chairman and Managing Director.

On December 15, the board had offered the position of Managing Director to Dr Nayak, which he reportedly turned down.
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Finance Ministry backs up Damodaran
New Delhi: The Ministry of Finance has defended the IDBI Chairman, M. Damodaran's move to relinquish charge as Administrator of Specified Undertaking of UTI (SUUTI or UTI-I) and as Chairman of UTI Mutual Fund, and hinted that the move was not linked to the recent developments at UTI Bank.

In a statement, the Ministry said that Damodaran's decision to step down from posts in SUUTI and UTI MF was only to facilitate appointments in the two entities.

"Since October 1, 2004 the Government has considered the matter of appointing a Chairman for UTI MF and an Administrator for SUUTI. In order to facilitate these appointments, Mr Damodaran has relinquished the charge of UTI-MF and SUUTI," the release said.

While former LIC Chairman, S.B. Mathur, has been appointed Administrator of SUUTI, the Ministry has said that the Chairman of UTI MF would be appointed shortly by its sponsors in consultation with the Government.

"The Government appreciates the excellent work done by Damodaran in dividing the former UTI into UTI-MF and SUUTI and turning around the fortunes of UTI-MF," the release said.

The Ministry also said that Damodaran must pool in all his energies to guide IDBI. As CMD of IDBI, Damodaran was holding additional charge of UTI-MF and SUUTI.

"(IDBI Bank) is a bank in which Government of India holds, directly, 58.5 per cent shares and, through other public sector enterprises, a further 11.3 per cent. IDBI requires the full-time and undivided attention of its CMD, Mr Damodaran," the Ministry said.
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