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Rupee weakens - securities up
Mumbai: The rupee further depreciated against the dollar closing the day at 43.59/60.

Forwards market: The 6-month premium closed at 0.8 per cent (0.75) and the 12-month premium closed at 0.84 per cent (0.8).

G-Secs: In the bond market, the 10.21 per cent, 2021 paper, currently the most active, fell to close at Rs125.70 (7.45 per cent YTM), slightly higher than Wednesday's Rs 125.60 (7.46 per cent YTM). The 7.37 per cent, 9-year, 2014 paper closed at Rs102.65 (6.95 per cent YTM). The 7.38 per cent, 2015 paper was dealt at Rs102.55 (7.02 per cent YTM).

Call rates: The inter bank rates were at 5-5.05 per cent (4.95).

Reverse repo auction: The RBI received and accepted 51 bids amounting to Rs37,545 crore.

CBLO market: 268 trades, for Rs12,139.20 crore, in the rate range of 2.5-4.85 per cent, were realised.
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RBI's central board approves Rs.5,400 crore dividend to GoI
Mumbai: The Central Board of Directors of the Reserve Bank of India on Thursday approved payment of Rs5,400 crore dividend to the Government of India for the year ended June 30, said a press release from the RBI.

The meeting chaired by the RBI Governor, Y.V. Reddy, reviewed key economic, monetary and financial developments.

All central board members, namely Y.H. Malegam, Prof Mihir Rakshit, D.S. Brar, Ratan Tata, Dr Amrita Patel, K.P. Singh, K. Madhava Rao, Prof V.S. Vyas, H.P. Ranina, N.R. Narayana Murthy, Suresh Krishna, Dr Ashok Ganguly and the Government nominee, Ashok K. Jha attended.
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Kolkata to be hub for ICICI Bank's east India operations
Kolkata: The ICICI Bank has decided to develop its Kolkata base as the hub of all its eastern India activities, which are spread across Orissa, Jharkhand and the entire North Eastern region.

K. V. Kamath, managing director and CEO of ICICI Bank, has met the West Bengal Chief Minister, Buddhadeb Bhattacharjee, and placed the bank's proposal for a 10-acre plot before him.

ICICI would like to set up its own complex on the land, as it now requires approximately one million sq ft of space for its operations in the city. The bank is now waiting for the State Government to respond to its request, Kamath told reporters.

According to him, ICICI Bank currently employs 2,500 people in this city, which is slated to increase to 4,000-5,000 during the next two years. He is expecting a business growth 35-40 per cent from the eastern region.

Kamath said that the proposed new complex would be ready within 24 months after receiving the land and also said that ICICI Bank and its associate companies, including the insurance outfits, would operate from the new building.
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RBI: G-Sec auctions for Rs.8,000 crore fully subscribed
Mumbai: The sale of two government securities, the 8.07 per cent 2017 paper and 7.5 per cent 2034 paper, for Rs8,000 crore were oversubscribed on Thursday.

The notified amount for the 8.07 per cent 2017 paper was Rs5,000 crore, with RBI receiving 287 bids amounting to Rs9,015.82 crore. Of this, RBI accepted 116 bids amounting to Rs4,926 crore. The cut-off price was Rs107.17. Partial allotment percentage was 38.02 per cent from nine bids. Weighted average price was Rs107.33. RBI also received and accepted 74 non-competitive bids amounting to Rs73.99 crore. Partial allotment percentage was 100 per cent.

The underwriting amount accepted from primary dealers was Rs3,580 crore.

In the case of the 7.5 per cent 2034 paper, the notified amount was Rs3,000 crore. RBI received 148 competitive bids amounting to Rs6,354.77 crore.

Of this RBI accepted five bids amounting to Rs2,918.84 crore. The cut-off price was Rs100.65. Partial allotment percentage was 81.77 per cent from one bid. The weighted average price was Rs100.81. RBI also received and accepted 70 bids amounting to Rs81.15 crore. Partial allotment percentage was 100 per cent.

The underwriting amount accepted from primary dealers was Rs1,565 crore.
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ICICI Bank to divest entirely in the Federal and South Indian Banks
Kolkata: ICICI Bank will divest its entire stake in Federal Bank and South Indian Bank (SIB) within the next two years, according to K.V. Kamath, managing director and CEO.

Kamath said that the ICICI Bank's stake in these two organisations had been for investment puposes only and he felt that the time had come to get out of these two banks. Referring to the Federal Bank, he said, ICICI Bank wanted to clean up that organisation and it had been done in the last few years.

"The balance sheet of this bank is clean. So, we feel that we should divest our share in it. We would do it within the next two years. We would follow whatever the regulator would ask us to do," Mr Kamath said.

At present, ICICI Bank holds approximately 20.6 per cent in the Alappuzha-based Federal Bank and around 11 per cent in the Kochi-based South Indian Bank. In both these organisations, ICICI Bank's stake is clubbed as the promoter's share.

Recently, Reserve Bank of India had restricted cross-holdings among banks to five per cent and the excess holdings had to be divested in the next two years. Kamath categorically said that his bank would divest all its shares in these two organizations, and not even hold on to the permitted five per cent.
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