Rupee firms up - G-Secs up
Mumbai: The rupee appreciated against the dollar on higher inflows on Tuesday, ending the day at 43.44, up from Monday's close of 43.4750/4825.

Forwards market: The 12-month premium finished lower at 1.40 per cent (1.47) and the 6-month premium closed at 1.62 per cent (1.68).

G-Secs: In the bond market, prices inched up as the Government announced the State loan auction of Rs7,300 crore fixed at a coupon rate of 7.7 per cent. The 7.55-5-year-2010 paper, which is currently active closed at Rs102.85 (6.87 per cent YTM). The 8.07 per cent-12 year-2017 paper ended at Rs104.85 (7.4 per cent YTM), up from Monday's close at Rs104.58 (7.47 per cent YTM). The7.38-10 year-2015 benchmark paper ended at Rs101.25 (7.20 per cent).

Call rates: The inter bank rates closed at 4.95-5.00 per cent.

CBLO market: 171 trades amounting to Rs7,550.30 crore in the rate range of 4.84-5.00 per cent were realised.
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Bank of America to hike capital by $175 mn
Mumbai: Bank of America has committed additional capital of $175 million, approximately Rs767 crore, into its India operations, according to a press release from the bank.

While $150 million (Rs657 crore) of the total amount will be Tier I capital, which the bank has already brought in, the remaining $25 million (approximately Rs110 crore) will be Tier II capital.

The additional capital inflow is to meet the requirements of Reserve Bank of India on single and group borrower exposure limits. It will also help the bank to maintain and grow its balance sheet.

The bank is planning to grow its business in India further with existing clients and add new clients, the bank has said.

The bank has good working relationship with several leading players in syndicated transactions and on the distribution side and has no immediate plans for any formal business tie-ups, bank officials said.
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Central Bank home loans scheme to have LIC cover
Mumbai: The Central Bank of India has launched a housing loan scheme with life insurance cover equivalent to the amount of the outstanding loan, said a press release from the bank. The scheme has been launched in association with the Life Insurance Corporation of India.

The scheme is designed to bail out the heirs in case of death of the borrower. Home loan borrowers will have the option to take insurance cover on payment of a single premium.

In the unforeseen event of death due to any reason the insurance company will pay the outstanding amount of loan. Cover will also be available even if construction of the house is incomplete and heirs can complete construction by utilising the claim amount.
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APSFC and IFFCO Tokio in tie up for sale of insurance products
Hyderabad: The Andhra Pradesh State Financial Corporation (APSFC) has entered into an alliance with IFFCO Tokio General Insurance Company Ltd (ITGI) to act as its licensed corporate agent to sell non-life insurance products.

APSFC officials said the MoU provides a blue print for the two organisations to provide high quality insurance services to the small and medium enterprises (SME) in the State.

Stating that the Corporation on an average extends loans of Rs350 crore per annum to the SME segment, APSFC officials said that if all those borrowers obtain insurance cover from it, then the Corporation could record a premium income in the range of Rs3 crore per year. APSFC would, however, not lend to those SMEs that did not get their assets insured.

ITGI, having recorded an insurance premium of Rs507 crore for the fiscal ended March 2005, has set a target of achieving Rs750 crore during the current fiscal, company officials said. Apart from networking all its offices across the country, ITGI also has plans to come out with innovative products such as the recently launched `Deficit Rainfall Insurance cover' that provides indemnification to farmers in the event of shortage of rainfall, he said.
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RBI: On-tap sale of State Govt. loans for Rs.7,300 crore
Mumbai: All State Governments, except Chhattisgarh and Punjab, will raise Rs7,300 crore through on-tap sale of the 7.77-per cent, 2015, State Development Loan, according to a press release from the Reserve Bank of India.

This loan has a maturity of ten years and will be raised through the normal market-borrowing programme. The auction will be held on May 17.

In case of over-subscription, the States have the option to retain excess subscription to the extent of ten per cent of their respective amounts.

The RBI can close the sale during or after close of banking hours on or after May 17.
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