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Rupee unchanged - securities dip
Mumbai: The rupee remained almost unchanged against the dollar on Tuesday closing the day at 43.54, almost the same as Monday's 43.54/55.

Forwards market: The 6-month premium closed at 1.32 per cent and the 12-month at 1.50 per cent.

G-Secs: In the bond market, the 7.27 8-year 2013 paper, closed at Rs101.10 (7.09 per cent YTM), down from Monday's Rs101.38 (7.04 per cent). The 10.25 - 16-year 2021 paper, which was auctioned yesterday opened at Rs123.30 (7.68 per cent YTM) and closed at Rs122.85 (7.72 per cent YTM). The 7.38 - 10-year 2015 benchmark paper was dealt at Rs101.44 (7.18 per cent YTM).

Call rate: The inter bank rates were at 4.75-5 per cent (4.75).

CBLO market: 195 trades in the 4.81-5.05 per cent range, amounting to Rs7,029.50 crore, were realised.
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SBI issues floating rate notes for 5 billion yen
New Delhi: State Bank of India has issued floating rate notes for 5 billion yen last month under its medium term notes programme for one billion dollars.

The floating rate notes, issued by the bank's London branch, carried a coupon of libor+57 basis points in yen, SBI told BSE today. The notes were issued for a tenure of 5 years.

This is the second issue under the programme.

Its inaugural issue for USD400 million, carrying a coupon rate of 4.75% and for a tenure of 5 years, was completed in December, 2004.
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Govt. clears Bank of Baroda's public offer - slated for September
New Delhi: The Bank of Baroda (BoB) has received a clearance from the finance ministry to tap the capital markets in September towards funding its expansion plans.

BoB is likely to sell 7.1 crore shares to the public, which will dilute government holding in the bank from 66% to 53%, a bank official said. At the current market price of Rs207-209, the bank may be expected to raise close to Rs1,500 crore from such an issue.

BoB will be the sixth PSU bank to tap the capital market in the last two years. Since January 2004, five banks - Punjab National Bank, Allahabad Bank, Dena Bank, Oriental Bank of Commerce and Syndicate Bank - have come out with public issues.

BoB is planning to expand presence in the US, UK, UAE, Singapore, Thailand, Malaysia, Sri Lanka, Male, Bangladesh and West Indies.
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Bharat Overseas Bank IPO to raise Rs100 crore -slated for October
Mumbai: Chennai-based Bharat Overseas Bank Ltd is tapping the capital markets with a Rs100-crore initial public offer, slated for issue in October.

Bank officials said that the proceeds from the IPO would go towards expanding the business of the bank as well as to meet capital requirements of the Basel II requirements. By 2006 the bank hopes to increase its net worth to Rs300 crore, in order to meet RBI guidelines.

The bank is targeting to grow its business to Rs12,000 crore by 2010. Its branch network, currently at 95, would also be expanded to 200, officials said. The bank also intends to bring down the corporate loan book, which is currently at 55 per cent of total assets, to around 40 per cent by 2010.

Accordingly, the SME and retail portfolio, which is now at 45 per cent, would increase to 60 per cent. The bank also hopes to increase the non-fund income from the current level of 6 per cent to 14 per cent, through tie-ups to distribute retail products such as insurance and mutual funds.

In the meanwhile the bank has announced a distribution tie-up between itself and Franklin Templeton. BOBL would now be distributing the mutual fund products of Franklin Templeton to its customers across its various branches.

The partnership is expected to net Franklin Templeton assets under management of Rs100 crore in the next six months, bank officials said. Franklin Templeton India officials said that the tie-up with BOBL would help Franklin Templeton expand its market as well as ensure higher penetration in its existing markets.
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Polaris software for Taiwan bank
Chennai: Polaris Software Lab has entered into an agreement with Polaris Financial Group of Taiwan to provide banking software to Bank of Overseas Chinese, a member of the group. Announcing the agreement at a news conference, Polaris Software officials clarified that it was just a coincidence that both companies shared the same name.

Under the agreement, Polaris Software will deploy its banking software, Intellect Suite, in the Bank of Overseas Chinese.

According to Polaris officials, the deal is important to Polaris Software because this will be the first time the company will be offering total solutions to a bank's entire operations through Intellect Suite. As of now, Polaris Software has offered only limited solutions for particular areas of operations such as Treasury operations or credit card business to large banks in Europe and Japan, they said.

The company also sees the deal as a means to gain a foothold in the larger market of neighbouring China. The size of the deal would be between $5 million and $10 million.

The plan is to upgrade the IT infrastructure at the $10-billion bank, which has over 55 branches in Taiwan and 1,800 employees.
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SBI pays out Rs.393 crore dividend to RBI
Mumbai: The State Bank of India has made a payment of Rs392.92 crore to Reserve Bank of India, by way of dividend for the financial year 2004-05, said a press release.

SBI Chairman, A.K. Purwar handed over the cheque to RBI Governor, Dr Y.V. Reddy on Tuesday.

For the fiscal 2004-05, SBI has declared 125 per cent dividend, including 25 per cent special dividend to commemorate 200 years of the bank's establishment.
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Allahabad Bank pays Rs.37 crore dividend to Govt.
New Delhi: Allahabad Bank has paid a final dividend of Rs37 crore to the Government for the year 2004-05. The bank had announced a 15 per cent final dividend.

The Chairman and Managing Director, Allahabad Bank, O. N. Singh, handed over the dividend cheque on Tuesday to the Finance Minister, P. Chidambaram.

Allahabad Bank had earlier paid an interim dividend of 15 per cent.
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