Rupee slips - G-Secs up
Mumbai: The rupee closed at 43.485-43.495 levels against the dollar on Monday, weaker than its previous week's finish of 43.475.

Forwards Market: The six-month forward closed firmer at 2.05 per cent as against its previous finish of 2.13 per cent. The 12-month forward closed flat at 1.75 per cent.

G-Secs: The market ended up by about 15 points, closing at 6.55 per cent levels as against their morning levels of 6.70 per cent. The benchmark 7.38 per cent 10-year paper closed at 6.55 per cent as against last Friday's 6.73 per cent.

Call Rates: There was adequate liquidity in the inter-bank money market, with the rates flat in the 4.60-4.80 per cent band.

CBLO market: 144 trades aggregating Rs6,185.95 crore were put through in the rate range of 4.65-4.85 per cent.
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Cut-off price for bond auction fixed
Mumbai: The cut-off price for the Rs5,000 crore auction of the 8.35 per cent 2022 paper was fixed at Rs109.75 (7.3427 per cent YTM). The auction received a total of 355 competitive bids amounting to Rs13,739.50 crore of which 17 bids worth Rs4,956.95 crore were accepted.

Twelve non-competitive bids amounting to Rs43.076 crore were received and accepted. The amount of underwriting accepted from PDs was Rs3,225 crore.
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RBI: NBFCs must ensure full cover on public deposits
Mumbai: The Reserve Bank of India has notified all non-banking finance companies (NBFCs) that they should ensure that there is full cover available for the public deposits accepted by them, at all times.

In a notification to all NBFCs here on Monday, the central bank said that while calculating the cover, the value of all debentures (secured and unsecured) and outside liabilities other than aggregate liabilities to depositors may be deducted from the total assets. The assets should be evaluated at book value or realisable market value whichever is lower for this purpose, the central bank has said.

NBFCs concerned must inform the Regional Office of the RBI in case the asset cover calculated falls short of the liability on account of public deposits.

All NBFCs accepting holding public deposits are directed to create a floating charge on the statutory liquid assets invested in terms of Section 45-IB of the RBI Act, 1934, in favour of their depositors. Such charge should be duly registered in accordance with the requirements of the Companies Act, 1956, the central bank has said.
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State Bank of India to pay $8 million for stake in IOIB
Mumbai: The State Bank of India will pay out $8 million (around Rs35 crore) for the acquisition of a 51 per cent stake in the Mauritius-based Indian Ocean International Bank Ltd (IOIB).

Post acquisition, the IOIB will become a subsidiary of SBI. SBI plans to integrate the operations of the acquired entity with its existing operations in Mauritius in order to strengthen SBI's presence in the retail sector in the country. SBI is also looking to pick up stakes in banks located in Africa and Asia, he said. IOIB's retail banking division presently has a market share of 7-10 per cent in Mauritius.

The bank also plans to introduce a bouquet of products to retain funds from Indian Millennium Deposits, which would mature in December, the bank has said.
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Centurion Bank to raise Rs600 crore
Mumbai: The Centurion Bank Ltd has said that its shareholders have approved a proposal for raising Rs600 crore by way of domestic or international offerings. In a notice to the stock exchange here today, the bank said it has obtained shareholders' approval to raise the capital in one or more tranches.

This it may do through foreign investors, foreign institutional investors, non-resident Indians, corporate bodies, trusts, mutual funds, banks, insurance companies, pension funds, individuals and or trustees and or stabilisation agents or otherwise. It might even consider raising funds through a private placement basis, or in the form of GDRs or ADRs, FCCBs or any other permitted instruments.
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Wipro completes consultation assignment with Corporation Bank
Bangalore: Wipro Infotech has announced that it has completed its assignment with Corporation Bank in providing Six Sigma consulting in select areas.

The objective of the consultancy was to make the bank's select business processes and operations more efficient, said a Wipro press release. The project commenced in June 2004.

"The solution that Wipro Infotech is providing Corporation Bank will help bring in a culture of continuous improvement, develop a pool of resources that would be the think-tank and enable change within the organisation to attain operational efficiency," Wipro Infotech officials said.
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BoB shifts Rs8,450 crore G-Secs to HTM category
Mumbai: The Bank of Baroda has transferred Rs8,450 crore worth of government securities to the 'Held to Maturity' category basket from its 'Available for Sale' basket, last week.

The bank had booked a depreciation of Rs518 crore in its G-Secs portfolio during the third quarter, December 31, 2004. Post-transfer of securities to the HTM category, the bank booked an additional depreciation of Rs70 crore.

The average duration of the bank's portfolio has been brought down to 3.55 years from 5.65 years earlier.

Commenting on the bank's plans for consolidation, BoB officials said that they are looking for banks with a strong presence in the East and North and ruled out any merger plans with banks in the West.
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