Bond prices rally
Mumbai: The domestic currency closed around five paise weaker on Tuesday ending at 43.53/54 per dollar as against its closing at 43.48/49 on Monday.

Forwards Market: The six-month premium ended at 1.78 per cent (1.69 per cent), while the one-year premium ended at 1.35 per cent (1.30 per cent).

G-Secs: The bond prices have rallied by over one and a half rupees across maturities in the first four days alone. Prices rallied by around 30-35 paise across maturities in the domestic debt market, with the ten-year benchmark paper, the 7.38 per cent 2015 paper was quoted at Rs 106.90 6.47 per cent YTM- as against its previous closing levels at Rs106.40 -6.53 per cent YTM.

Call rates: Easy between 4.25 per cent and 4.50 per cent in the inter-bank market.
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SBI and Cardiff to invest another Rs. 75 crore in SBI Life
Mumbai: The State Bank of India and Cardif of France would immediately inject Rs.75-crore capital into their life insurance venture, SBI Life. The company has said that if required, the partners may also bring in another Rs100 crore before financial year 2004-05 ends.

According to SBI Life, the company may require about Rs500 crore capital over the next two years. Currently, SBI Life has paid-up capital of Rs175 crore.

SBI Life would need more capital because it has been growing at a fast clip. SBI Life leads the private insurance market in terms of lives insured, having covered over 20 lakh people.

SBI Life has launched it's unit-linked product, Horizon, which is designed to provide high returns while reducing risks. It aims at balancing risk and return by initially investing more in equity but shifting to safer funds as it approaches maturity, the company has said. SBI, said the bank currently sold life insurance at 5,000 branches and intends to scale it up to 10,000 branches by March 2006.
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SBI prepares for strong growth in loans
Mumbai: State Bank of India, the country's largest bank, has said it expects a loan growth of 19 per cent in the current financial year. Its initial target was 16.5 per cent.

SBI says there is a huge demand from the Indian corporate sector because many industries are switching to domestic banks rather than seeking funds from overseas through the ECB route.
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Rs 7,000 crore T-bills oversubscribed
Mumbai: The Rs7,000 crore worth auctions for the 9.39 per cent 2011 paper and the 7.50 per cent 2034 paper were oversubscribed in the domestic debt market on Tuesday. Their cut-off prices, at Rs115.02 and Rs104.80 respectively, were higher than market expectations.

The 9.39 per cent 2011 paper received 426 competitive bids amounting to Rs17,223 crore, of which 114 bids amounting to Rs4,935 crore were accepted. Twelve non-competitive bids worth Rs 64.174 were received and accepted. Underwriting accepted from primary dealers was at Rs 3,780 crore.

The 7.50 per cent 2034 paper received a total of 190 competitive bids amounting to Rs5,835 crore, of which 87 bids amounting to Rs1,936 crore were accepted. Fifteen Non-competitive bids worth Rs63.73 crore were received and accepted. Amount underwritten by primary dealers was Rs1,830 crore.
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