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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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domain-B : Indian business : News Review : 14 June 2005 : banking and finance