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Rupee firmer - G-secs rally
Mumbai: The rupee gained against the dollar on Tuesday finally cloing at 43.5425.

Forwards market: The six-month ended at 1.05 per cent (1.10 per cent) and the 12-month closed at 1.05 per cent (1.10 per cent).

G-Secs: The 7.37-9 year-2014 paper closed at Rs103.55 (6.82 per cent YTM), up from Monday's close at Rs103.05 (6.90 per cent YTM). The 7.38-10 year-2015 benchmark paper closed at Rs103.81 (6.86 per cent YTM).

Call rates: The inter bank rates were slightly higher at 5-5.10 per cent (4.90-5 per cent).

CBLO market: 140 trades in the rate range of 2.96-5.10 per cent, aggregating Rs3,789.80 crore were realised.
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Reddy: India insulated from global financial instability
Mumbai: The Indian economy is largely insulated from episodes of global financial instability, as the country has over the years built resilience to shocks and is less vulnerable to output volatility, said Dr. Reddy, Governor, Reserve Bank of India, speaking at the eighth meeting of the Bank of International Settlements (BIS) Working Party on Monetary Policy in Asia. The meeting was held for the first time in India.

Barring supply shocks, in particular those due to international oil prices, inflation, especially core inflation, had been fairly low, he said.

The meeting focused on current issues in monetary policy. These included growth prospects for Asia, the role of the current IT cycle and its relevance to the Asian outlook and the consequences of higher oil and non-oil commodity prices.

In his inaugural address, Dr Reddy said over the years policy-making is becoming more globalised as cyclical changes are becoming more synchronised, especially since 1990s. There is increasing convergence in perception, institutional structure, choice of instruments and communication strategy in monetary policy making.

Focussing on the specific features of India, Dr Reddy said the multiple indictor approach followed by the RBI was a logical outcome of the multiple objectives that characterise the monetary policy framework. The enactment of Fiscal Responsibility and Budget Management Act by Parliament provides further flexibility in the conduct of monetary policy. He also drew attention to the data gaps in the conduct of monetary policy in India, especially that on employment.

William White, Economic Adviser and Head of Monetary and Economic Department, BIS, chaired the meeting. Senior executives of central banks of other Asian countries, Canada, Europe, France, Holland, and the US Fed Reserve participated in the meeting.
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Goldman Sachs to ramp up head count at new facility
Bangalore: The US investment bank Goldman Sachs proposes to ramp up the head count at its new back office facility to 1,500 people over the next five years. The facility was set up to serve its international clientele.

Currently, the facility employs 500 people. The company has so far invested $30 million for building the facility and the technological infrastructure. According to bank officials the Bangalore facility would provide services to a wide variety of services provided by Goldman Sachs throughout the world.

These services include asset management, commodities, financial derivatives, mergers and acquisitions, private equity and capital raising activities for Government/Government-owned corporations. Approximately, 35 per cent of Goldman Sachs operations were in technology-related areas, officials said.

Goldman Sachs currently employs 21,000 people worldwide and has annual.
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SBI offers new mortgage loan for traders
Madurai: The State Bank of India (SBI) has introduced a new scheme of mortgage loans for traders. The new scheme sought to provide a hassle-free financial assistance without undue reliance on financial statements, periodical submission of stock statements, periodical inspection by bank officials, policing of operations etc.

While the minimum quantum of loan will be Rs25,000, the maximum is Rs5 crore and the facility can be used either as a term loan or cash credit or a combination of both. The loan is made available to small business enterprises, retail traders, wholesale dealers, professionals and self-employed. 75 per cent of the realisable value of the property mortgaged within municipal limits will be extended as loan.

While cash credit will carry an interest of 10 per cent, the rate for term loan will be 10.50 per cent. The maximum repayment period for term loan will be 60 months. The scheme has already been introduced in 50 cities in the country. An exclusive credit centre has been opened in the city for the purpose with branch sanction limit of Rs 1 crore. "Our terms are the most attractive than other banks," he added.
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Banking and Financial results: Kotak Mahindra Bank
Kotak Mahindra Bank Q4 net up 12 pc
Mumbai: Kotak Mahindra Bank Ltd has announced a bonus issue, offering three shares for every two held. The bank has also reported a 12-per cent increase in net profit at Rs23.08 crore for the quarter ended March 31, 2005 against Rs20.59 crore in the corresponding quarter of the previous year due to higher retail and fee income.

Total income for the fourth quarter was Rs171.47 crore (Rs117.23 crore). Net interest income was Rs67.26 crore (Rs66.89 crore).

The board has declared a dividend of Rs1.25 per share (on a face value of Rs10).

The bonus issue would take up the paid-up capital of the bank to over Rs300 crore, which will satisfy the licensing condition of RBI, according to Uday Kotak, Executive Vice-Chairman and Managing Director, Kotak Mahindra Bank.

For the financial year 2004-05, the bank reported an 8 per cent rise in net profit at Rs84.89 crore (Rs78.73 crore). Total income was Rs552.38 crore (Rs383.13 crore).

Net interest income was Rs225.48 crore, up 32 per cent (Rs170.87 crore).

The capital adequacy ratio was at 12.8 per cent (15.25 per cent). The wealth management division, which was carved out as a separate division last year, had equity assets worth Rs3,800 crore as on March 31, 2005 against Rs2,000 crore last year, Kotak said.

The bank currently has 38 full-fledged branches in 17 cities and plans to increase the number of branches to 100 by March 2007. Speaking about the growth plans in the coming fiscal, Kotak said the bank would look at increasing its income through four divisions - the international business for which it has set up three subsidiaries, an asset recovery business, a private equity fund and a real estate venture fund.

As of now, the bank has subsidiaries in the UK, the US, Mauritius and Dubai. The other overseas forays too will be through subsidiaries, he added. The bank bought Rs1,000 crore worth non-performing loans last year at a significant discount mostly from private sector banks and some foreign banks.

The bank has also announced the consolidated results for the group, which include Kotak Mahindra Asset Management Company, Kotak Mahindra Primus, OM Kotak Mahindra Life Insurance Company, Kotak Mahindra Capital Company and Kotak Securities.

The consolidated net profit for the year March 2005 was lower at Rs170.91 crore against Rs174.16 crore last year, due to lower treasury earnings.
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