Rupee closes stronger - bonds move up
Mumbai: The rupee closed stronger by 15 paise on Tuesday ending at 43.70/72 against the dollar as compared to its previous close of 43.8450/8550.

Forwards Market: The six-month forward ended at 1.90 per cent (1.77 per cent) while the one-year forward closed at 1.36 per cent (1.32 per cent).

G-Secs: Bond prices of longer tenor papers went up by about Rs1.50 while medium term papers moved up by 50 paise. The 7.38 per cent 2015 paper closed at Rs106.63 at a yield of 6.51 per cent, five basis points lower than previous close. The 7.55 per cent 2010 paper closed at a yield of 6.32 per cent at Rs105.59.

Call Rates: In the range of 5.90-6 per cent.

CBLO market: 145 trades aggregating Rs5,700 were transacted.
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LIC, Nabard and banks chip in to aid Tsunami victims
Chennai: According to a press release from the National Bank for Agriculture and Rural Development, it has put together a package for rural housing and the marine sector, through which Nabard will provide 100 per cent refinance to all categories of banks irrespective of the loan amount.

The refinance will be at a special concessional rate of 4.25 per cent to help banks extend loans to the affected at 7 per cent. It will provide 3 - 5 year investment finance to help fishermen purchase boats, engines, nets and other fishing gear. It will provide refinance support to restructure or reschedule loans for 5 - 9 year period.

The Life Insurance Corporation of India has said that it will ensure speedy settlement of claims. It has set up help desks in twelve divisional and 261 branch offices in the southern zone. The concessions include simplified death claim forms with proof of death in the form of a certificate issued by any government machinery or a certification by select agents such as zonal managers, chairman's club members in the area or the development officer.

LIC will not insist on paper work such as police report, hospital records for settlement of double accident benefit. It will issue duplicate policies free-of-cost on the basis of an indemnity bond if they have been destroyed, the release said.

The Indian Bank plans to launch exclusive housing loans and consumption loans immediately, a release said. It has contributed Rs 2 crore to the Prime Minister's National Relief Fund and its staffers would contribute a day's salary totalling about Rs one crore.

The Lakshmi Vilas Bank has announced that it would not collect service charges to issue demand drafts for donations to the Prime Minister's Relief Fund and the Chief Minister's Relief Fund.
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Tsunami strike: Insurance claims with add-on quake cover only to be settled
Bangalore: Only those corporates that have both earthquake and STFI (storm, tempest, flood and inundation) covers will be entitled to receive compensation for the damages caused by the recent tsunami strike, say sources in the insurance industry. STFI is an add-on cover in the standard fire insurance policy, and insurers had the option of keeping out these covers and thereby restrict the premium costs.

With the present tsunami being said to have occurred as an after-effect of the earthquake Insurance companies are saying that corporates would be covered under the fire policy, only if earthquake extension has been given to the fire policy.

Only a few of the entities in the region have taken the complete covers as mandated by the guidelines of the Tariff Advisory Committee. Power plants had restricted the costs in view of the tariff guidelines. At present, under the guidelines of the Ministry of Power, the pass-through impact of insurance is capped at 2.5 per cent of the operation and maintenance costs. Accordingly, power stations have restricted the scope of the insurance cover in a bid to ensure that the project tariffs remain competitive.

As a result, the sources said that wherever state-owned and public sector plants have incurred damages, the costs would have to be absorbed by the respective promoters or underwritten by the respective budget, with a concomitant fiscal impact.
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