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Rupee
ends higher - bond prices fall
Mumbai: The rupee firmed up against the dollar on
Thursday on higher FII inflows closing at 43.58/59, up
from Wednesday's 43.65/66.
Forwards market: The 12-month premium closed at
1.25 per cent (1.29) and the 6-month at 1.39 per cent
(1.39).
G-Secs: The 8.07-12 year-2017 paper closed
at Rs107.90 (7.06 per cent YTM). The 7.38-10 year-2015
benchmark paper closed at Rs103.05 (6.96 per cent YTM),
down from Wednesday's Rs103.48 (6.90 per cent YTM).
Call rates: The inter bank rates closed at 4.90-5
per cent (5-5.10).
CBLO market: 196 trades, aggregating Rs8,301.85
crore, in the rate range of 4.66 to 5.10 per cent were
realised.
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DBS
Bank to pick up 37.5 pc stake in Chola Investment
Chennai: The DBS Bank of Singapore will pick up a
37.5 per cent stake in Cholamandalam Investment and Finance
Company of the Murugappa group.
Part of the stake acquisition will be through the purchase
of shares from Tube Investment of India (TI), another
Murugappa company. The stake sale will fetch Rs86 crore
to the coffers of the company.
DBS Bank intends to pick up the 37.5 per cent stake through
purchase of shares from TI, subscription to a preferential
offer of shares and an open public offer. In all, DBS
will be spending about Rs228 crore on the acquisition.
After the acquisition, DBS Bank and the Murugappa group
will become equal partners in the non-banking finance
company. Chola Investment will then be renamed Cholamandalam
DBS Finance Ltd.
It is expected that Chola Investment's net worth will
increase by Rs45 crore through the preferential offer.
Cholamandalam officials said at a press conference that
DBS coming into the company would bring in expertise into
all areas of financing such as personal loans and mortgages.
Chola Investment today specialises only in vehicle financing.
They also said that "eventually" the shares
of Cholamandalam DBS Finance Ltd could be listed on the
Singapore Stock Exchange.
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SBI
Life Insurance reversionary bonus
Mumbai: SBI Life Insurance Company Ltd has announced
reversionary bonus on its policies, which will be added
to policies that are in force as on March 31, 2005.
The bonus would become payable to the policyholder upon
survival till the maturity date, or to the nominee along
with death claim benefit payment.
On Lifelong Pensions, over the minimum guaranteed return
of 4 per cent per annum the company also announced a 2
per cent simple reversionary bonus as on March 31, 2005,
and a special ad-hoc one-time bonus of 4 per cent per
annum declared on September 30, 2004.
On endowment policies, like Sudarshan, a 2 per cent bonus
has been declared on the sum assured on Plan A, 1.5 per
cent bonus on Plan B and on Sanjeevan Supreme a bonus
of 1 per cent. The bonus on the children's policies is
2.5 per cent for Scholar and 1.25 per cent for Scholar
II and on money-back policies 1.25 per cent.
On Sanjeevan and Young Sanjeevan, the bonus is 1 per cent
of the sum assured.
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Jindal
Saw ECBs raise $40 mn
New Delhi: Jindal Saw Ltd has said that it has raised
$40 million (about Rs175 crore) through external commercial
borrowings (ECBs) from a nine-bank syndicate to finance
its capital expenditure programme.
The company initially wanted to raise a term loan of $30
million with a green shoe option of $10 million. But after
the issue was oversubscribed two times, it retained the
green shoe option and has raised the deal size to $40
million.
The nine-bank syndicate comprises Indian, Asian and West
Asian banking majors.
While Barclays Bank Plc and SBI were the book running
lead managers, the Bank of Baroda and the Industrial &
Commercial Bank of China (Asia) Ltd were the other lead
managers.
Canara Bank, SBI International (Mauritius), Syndicate
Bank, Emirates Bank International PJSC and Bumiputra Commerce
Bank Berhad were the other participators in the issue.
The fully unsecured loan has a bullet repayment after
tenure of five years, Mr Kumar said.
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