Rupee dips as bonds go steady
Mumbai: The rupee ended closed at 43.8450/8550, six paise weaker than previous finish at 43.78/79.

Forwards Market: The six-month forward ended at 1.77 per cent (1.62 per cent) and the one-year forward premia finished at 1.32 per cent (1.28 per cent).

G-Secs: The benchmark 7.38 per cent 2015 paper closed at a yield of 6.55 per cent at a price of Rs106.32 while the 7.55 per cent 2010 paper ended with a 6.34 per cent yield at Rs105.40.
Call rates: In the inter-bank market were in a range of 5.75 - 6.00 per cent.

CBLO market: 141 trades worth Rs5,000 crore were transacted.
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RBI announces package for tsunami-hit States
Mumbai: The Reserve Bank of India has asked banks to provide financial assistance to agriculturists, small-scale industrial units, artisans, small businesses and trading establishments affected by the natural calamity, immediately after the district or State authorities declare the area as calamity affected, said an RBI press release.

The relief package announced by the apex bank includes consumption loans for sustenance, waiver of margin requirements. The grants and subsidies provided by State Governments can also be considered as margin. Banks may also provide credit not only to existing borrowers but also to other eligible persons within their jurisdiction, who are not covered by any other financial intermediary. Banks have also been asked to convert, reschedule and restructure existing loans in the case of crop failure due to tsunami tragedy.

The package also includes term loans for developmental purposes, for persons affected by the disaster.

Banks, while using their discretion on charging of interest, are required to view such cases sympathetically and consider waiving of penal interest to be charged for default of current dues and deferment of compounding of interest. In addition, the banks have been asked to restore banking services in the affected areas as soon as possible, said the release.

The central bank has asked banks to convene a State Level Bankers Committee meeting immediately to discuss the effect of the tsunami in their respective areas and to consider and recommend any special measures that might be required in the affected States in addition to the RBI's relief package. RBI has also asked its Regional Directors in the affected States to coordinate with the State Governments in this matter. The apex bank is also taking special measures to ensure the movements and adequate supply of currency notes in these areas.

A task force chaired by V. Leeladhar, Deputy Governor, RBI, and G. Srinivasan, Chief General Manager, Rural Planning and Credit Department - as member secretary, along with senior executives of RBI has also been formed to monitor relief measures through the banks.
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Banks contribute to PM's National Relief Fund
Mumbai: Banks have started making contributions to the Prime Minister's National Relief Fund. Bank of Baroda has donated Rs5 crore to the fund. The Bank of India has decided to donate Rs2 crore to the fund. The employees of the Bank have also decided to donate one day's salary to the Prime Minister's Relief Fund as a gesture to the suffering people, said a press release.
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