document.writeln("

Rupee steady - G-Secs rise
Mumbai: The rupee was range-bound against the dollar on Wednesday, trading at 43.54/55 levels. On Tuesday, the currency had closed at 43.53.

Forwards market: The 12-month premia closed at 0.92 per cent (0.96 per cent) and the 6-month premia at 0.99 per cent (1.08 per cent).

G-Secs: In the bond market, the 10.25-16 year-2021 paper closed at Rs125.49 (7.47 per cent YTM), higher than Tuesday's close of Rs125.24 (7.49 per cent). The 7.27-8 year-2013 paper ended at Rs102.08 (6.92 per cent YTM), up from Tuesday's Rs101.93 (6.95 per cent YTM). The 7.38-10 year-2015 benchmark paper was dealt at Rs102.25 (7.07 per cent YTM), up from Tuesday's Rs102.05 (7.09 pc YTM).

Call rates: The inter bank rates closed at 4.90-5 per cent (5-5.05).

Reverse repo auction: The RBI received and accepted 48 bids amounting to Rs38,155 crore.

CBLO market: 205 trades for Rs8,82.70 crore in the rate range of 4.65-5 per cent, were realised.
Back to News Review index page  

Global Trade Finance targets growth in turnover to Rs.3,000 crore for 2005-06
Mumbai: Global Trade Finance (GTF), jointly owned by Exim Bank of India and other financial institutions, is targeting a 50 per cent growth in turnover in 2005-06, hoping to increase its turnover to around Rs3,000 crore from Rs1,913 crore in 2004-05.

GTF is a provider of international factoring, domestic factoring and forfeiting services. Officials said that the institution should be able to reach this target if India's exports maintain the 25 per cent growth rate, as in the last three years.

The company's profit after tax increased to Rs6.5 crore from Rs1.5 crore in 2003-04.

Factoring (for the short-term) helps in lessening the credit and collection burden created by international sales. Forfeiting is meant for receivables against which payments are due over a longer period.

To meet its growth targets, GTF is planning to raise its capital from Rs36 crore to Rs81 crore by way of issuing preferential shares to its stakeholders.

The company is owned jointly by Exim Bank (40 per cent), First International Merchant Bank, Malta (38.5 per cent) International Finance Corporation, Washington (12.5 per cent) and Bank of Maharashtra (9 per cent). GTF, which started business in 2001, was created to offer export-financing tools for exporters, especially small and medium-scale enterprises (SMEs).

The company's current networth is Rs65 crore, which includes Tier-I and Tier-II capital. Apart from raising funds through equity, the company has set up lines of credit worth $140 million with banks such as Exim Bank, Standard Chartered, State Bank of India and ABN Amro. It also raises funds through debentures, short-term bonds and mutual funds.

In the current fiscal, GTF is planning to issue bonds worth Rs50-75 crore of 5-6 years tenure to shore up its Tier-II capital. Officials said that once the institution raises its core capital, its borrowings can go up to Rs800 crore.

GTF is also planning to introduce import factoring for the first time in India. According to the officials last year, the country's gross imports were worth US$107bn.

Unlike banks, GTF offers credit cover and does not insist on collaterals for the finance. The company also carries out collection and follow-up work through its network.
Back to News Review index page  

RBI: T-Bills auction fully subscribed
Mumbai: The auctions of the 91-day and 364-day treasury bills were fully subscribed, according to a press release from the RBI. The notified amount for both T-bills was Rs2,000 crore.

For the 91-day T-bills, the RBI received 60 bids amounting to Rs6,326.40 crore. Of these, the RBI accepted 26 bids. The cut-off price was Rs98.72. The partial allotment percentage of competitive bids was 22.31 per cent from 16 bids. The weighted average price was Rs 98.73.

The RBI also received and accepted one competitive bid amounting to Rs203 crore. The partial allotment percentage was 100 per cent and devolvement on the RBI was nil.

For the 364-day T-bills, the RBI received 82 competitive bids amounting to Rs5,936 crore. Of these, the RBI accepted 31 bids. The cut-off price was Rs94.70. The partial allotment percentage of competitive bids was 91.03 per cent from 13 bids. The weighted average price was Rs94.71.

The RBI also received and accepted one non-competitive bid amounting to Rs5.61 crore. The partial allotment percentage was 100 per cent and devolvement on the RBI was nil.
Back to News Review index page