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Rupee
takes a knock - securities decline
Mumbai: The rupee substantially weakened against the
US dollar on Monday with a fall in the value of the euro
ending at 43.67, down by 15 paise from the previous close.
Forwards market: The 12-month premia closed at
1.27 per cent (1.25) and the six-month ended at 1.4 per
cent (1.30).
G-Secs: The recently auctioned 7.37- 9 year-2014
paper closed at Rs103.55, higher than Friday's Rs103.45
(6.84 per cent YTM). The 7.38-10 year-2015 benchmark
paper, which fell by 30 paise ended lower at Rs103.50
(6.8950 per cent YTM), lower than Friday's Rs 103.80 (6.85
per cent YTM).
Call rates: The inter bank rates were in the 4.90-5.10
per cent range.
CBLO market: 180 trades, aggregating Rs8,704.60
crore in the rate range of 4.90 to 5.10 were realised.
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Power
Finance Corp. sanctions Rs.750 crore loan for Nagarjuna
thermal project
Mangalore: The Power Finance Corporation, lead banker
for the thermal power project of Nagarjuna Power Corporation
Ltd at Padubidri in Udupi district, has sanctioned a loan
of Rs750 crore for the project, a press release from Nagarjuna
Power has stated.
Giving details of the project status, the release said
the company expects to achieve financial closure by July-August.
The project is making steady progress, the release added.
It said Rural Electrification Corporation Ltd and Housing
and Urban Development Corporation (HUDCO) Ltd are processing
applications for similar loan components. Other banks
such as Canara Bank, Oriental Bank of Commerce, State
Bank of India, Union Bank of India, State Bank of Mysore
and State Bank of Travancore are also processing the loan
application.
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RBI
panel for hike in foreign currency export credit rates
Mumbai: The Reserve Bank of India's (RBI) working
group set up to review export credit has recommended that
the interest rate for foreign currency denominated export
credit be increased by 0.25 percentage points.
However, it has recommended that the rupee export credit
rate remain unchanged in the interest of small and medium
exporters.
The Working Group has suggested that the interest rates
may be raised by 0.25 percentage points (London Inter
Bank offered rate plus one percentage point for the first
slab and additional two percentage points for the second
slab) subject to the condition that banks may not levy
any other charges in any manner under any name including
service charge.
The group has also asked banks to extend export credit
at rates lower than the ceiling rates prescribed by the
RBI.
"Since the RBI prescribes ceiling rates and banks
are at liberty to charge lesser rates of interest, taking
into account the cost of funds, margin requirements, risk
perception, etc., banks should try to extend export credit
at rates lesser than the ceiling rates prescribed by the
Reserve Bank," the group said in its report, which
was released today.
The Working Group to review export credit was set up in
April 2005 under the Chairmanship of Anand Sinha, Chief
General Manager-in-Charge, Department of Banking Operations
and Development, Mumbai.
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