document.writeln("

Rupee in range - securities weak
Mumbai: The rupee gained marginally against the dollar on Tuesday ending at Rs43.53, a shade higher than the previous close of Rs43.54.

Forwards market: The 12-month premium closed at 0.96 per cent (0.91 per cent) and 6-month premium at 1.08 per cent (0.95 per cent).

G-Secs: In the bond market the 7.27-8-year 2013 paper ended at Rs101.93 (6.95 per cent YTM), lower than the earlier level of Rs102.25 (6.90 per cent YTM). The 10.25-16-year 2021 paper closed at Rs125.24 (7.49 per cent), down from the previous level of Rs125.63 (7.45 per cent YTM). The 7.38 per cent 10-year benchmark was dealt at Rs102.05 (7.09 per cent YTM), against the last dealt level of Rs102.42 (7.03 per cent YTM). The 7.55-5-year 2010 paper closed at Rs103.58 (6.65 per cent YTM).

Call rates: The inter bank rates were at 5-5.05 per cent (5-5.50 per cent) levels.

Reverse repo auction: The RBI received and accepted 45 bids amounting to Rs35,680 crore.

CBLO market: 244 trades for Rs9,232.80 crore, in the rate range of 4.65-4.80 per cent, were realised.
Back to News Review index page  

Rs.8,000-crore bonds auction
Mumbai: The Reserve Bank of India proposes to raise Rs5,000 crore through the sale (reissue) of the 7.37 per cent government stock 2014 and Rs3,000 crore through the sale (reissue) of the 7.50 per cent government stock 2034.

The auction will be conducted using the multiple price method.
Tenders should be submitted in the prescribed form on August 18, before 12.30 p.m.
Back to News Review index page  

PNB to launch subsidiary for IT-related functions
Bangalore: The Punjab National Bank, which has achieved cent-per-cent computerisation of its branches, plans to set up a subsidiary to look after its IT-related activities. It may be mentioned that PNB has implemented FINACLE, the Infosys core banking solution (CBS), across its branches.

The bank also has plans to launch a new credit card. It currently has as many as 53,000 card members for its international co-branded credit card launched in conjunction with HSBC.

The bank has announced the inauguration of a large corporate branch (LCB) at Bangalore. Bank officials said that the bank planned to have as many as nine LCBs operational before March '06. Apart from Mumbai and Delhi, the bank would set up LCBs at Ahmedabad, Kolkata, Ludhiana, Chandigarh and Chennai, officials added.

PNB has 1,000 large corporate clients, those who enjoy credit limits of Rs25 crore and above.
Back to News Review index page  

Another Vietnam bank customer for i-flex CBS
Mumbai: Vietnam's Indovina Bank Ltd has opted for the core banking solution Flexcube from i-flex solutions Ltd a news release from i-flex solutions said.

Indovina Bank, a joint venture between Industrial and Commercial Bank of Vietnam and Cathay United Bank, Taiwan, will implement Flexcube across all its branches in Vietnam.

This win further strengthens i-flex's presence in the Vietnamese market where it already has Eastern Asia Commercial Bank, Vietnam as a customer for Flexcube.

FPT Software Solutions, Vietnam's technology company and i-flex's corporate business partner in Vietnam, which was part of the selection process, will be leading the system integration and localisation efforts in the implementation.
Back to News Review index page  

Banking reform bill: Govt. not to reduce stake in banks below 51 per cent
New Delhi: Attempts to enact an enabling provision, in order to reduce Government holding in nationalised banks to below 51 per cent, have finally been jettisoned.

Moving a bill in the Lok Sabha on Tuesday seeking higher Government representation on bank boards and setting up of a Financial Restructuring Authority (FRA) for troubled banks, finance minister, P. Chidambaram, said that the proposal that would have allowed Government holding to fall to as much as 33 per cent has been dropped.

The National Democratic Alliance (NDA) government originally mooted the move. However, the bill lapsed due to dissolution of the 13th Lok Sabha.

"The amendment relating to reduction of prescribed minimum shareholding of the Central Government in nationalised banks from 51 per cent to 33 per cent as mentioned in the earlier Bill has been omitted in the amendments proposed in the present Bill," Chidambaram said in the statement of objects and reasons of the bill.

Barring the deletion of the clause on Government holding and inclusion of the clause to give the Centre greater representation on the bank boards, the amendments proposed in the Bill are largely on lines of the Bill of December 2000.

The Bill provides for equitable representation of Government directors on the bank boards by reducing the maximum number of directors elected by shareholders other than the Government from six to three.

This would enable the Government to have higher representation on the bank boards commensurate with its shareholding.

It has been stated that out of the 19 nationalised banks, the Government's holding in 15 banks that have accessed the capital market ranges from 51 per cent to 77 per cent. In the other four banks, its holdings are 100 per cent.

It is also being proposed to increase the number of whole-time directors from two to four. Moreover, the provision of mandatory nomination of directors by the Reserve Bank of India and financial institutions is being omitted, while the RBI would have powers to appoint one or more additional directors whenever the regulator senses that a bank has run into trouble.

An amendment is also being proposed to ensure that non-official directors in institutions such as SBI, DICGC, NHB, and Exim Bank will vacate office after the expiry of three-year tenure whether a successor is appointed or not.
Back to News Review index page  

Dena Bank and SIDBI to co-finance SME and other sectors
Mumbai: Dena Bank and Small Industries Development Bank of India (SIDBI) have entered into a Memorandum of Understanding, for joint and co-financing of projects in the Small and Medium Sector, service sector and development of infrastructure projects.

Under the arrangement, the two banks would work jointly to identify projects and take up co-financing or exclusive financing of term loans. Dena Bank would exclusively extend the working capital under the arrangement.

To begin with, this arrangement will be rolled out at four centres, covering 17 clusters.
Back to News Review index page