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Rupee tad weaker - G-Secs fall
Mumbai: The rupee weakened slightly against the greenback on Thursday to close at 43.57/5750, lower than Wednesday's close at 43.54/55.

Forwards market: The 12-month premium closed at 0.85 per cent (0.92) and the 6-month at 0.87 per cent (0.99).

G-Secs: In the bond market the 10.25-16 year-2021 closed at Rs125.40 (7.48 per cent YTM), lower than Wednesday's close at Rs125.49 (7.47 per cent YTM). The 7.37-9year-2014 paper closed at Rs102.18 (7.03 per cent YTM). The 7.38-10 year-2015 paper was dealt at Rs102.19(7.07 per cent YTM), down from Wednesday's Rs102.25 (7.07 per cent YTM).

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

Reverse repo auction: the RBI received and accepted 48 bids amounting to Rs36,345 crore.

CBLO market: 192 trades, for Rs9,038.15 crore in the rate range of 4.65-5 per cent, were realised.
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World Bank chief: World Bank does not impose conditions
Hyderabad: Paul D. Wolfowitz, president of the World Bank, has denied the criticism that it imposes conditions on countries while extending loans. Addressing a press conference here on Thursday, he said the bank wouldn't tell countries how to run their business.

The World Bank would study the projects and look at their sustainability. He said the bank wants to build capacities and ensure long-term sustainability.

"We invest in things that work and that's not imposing conditions," he said.
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IFFCO-Tokio losses from Mumbai floods at Rs.137 crore
Mumbai: IFFCO-Tokio (ITGI), a joint venture between Indian Farmers Fertilisers Cooperative Ltd and The Tokio Marine and Fire Insurance, has suffered losses worth Rs137 crore in the recent Mumbai floods.

IFFCO-Tokio officials said that the company received 1,017 claims in Mumbai. Of these, 560 were motor claims while 457 were claims from the industry, marine, shops and offices, they said. ITGI will settle 40 per cent of its claims by the end of the month and 100 per cent by September 2005.

ITGI derives 50 per cent of its business from fire insurance while the other 50 per cent of the pie is divided between motor, health, shopkeepers and householders' insurance.

In the recent floods in Gujarat, the company had 400 claims and estimated losses worth Rs22 crore. Officials said that ITGI had the complete support of reinsurers such as Munich Re and Swiss Re.

ITGI reported premium income of Rs 507.39 crore in 2004-05 and garnered 2.80 per cent of the market share. The company has covered 16,020 farmers in eight States under the Barish Bima Yojana, an insurance cover against deficit rainfall.

It also provides personal accident covers on the purchase of fertilisers where the upper limit of the sum assured is fixed at Rs1,00,000.
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CBEC: More banks may be allowed to collect customs duty
New Delhi: The Central Board of Excise and Customs (CBEC) is in talks with the Principal Chief Controller of Accounts to allow more banks to collect customs duty on imports, a top Finance Ministry official has said.

"We are trying to address the problems faced by the trade in payment of duty. Right now we have only one bank in each place for acceptance of duty," Mr A.P. Sudhir, Member (Customs and Export Promotion), Central Board of Excise and Customs (CBEC), said in his address at the valedictory session of the national seminar on trade facilitation.

On the issue of drawback payments, he conceded there were delays.

The CBEC Member also said that the Finance Ministry was keen to further simplify procedures relating to drawback payment and give more powers to local officers.

"Sometime ago in 2002 or 2003, we decided to transfer the work to the field formations so that you (trade) don't have to come to Delhi to get your drawback. We now have requests for the previous procedure. I am not sure that's a very good idea," he said, ruling out any such move.
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IDBI Bank to increase branch strength
Mumbai: According to V.P. Shetty, Chairman, IDBI Bank, the bank hopes to increase its branch strength to 200 by end of March 2006 and to 500 by 2008. The bank also hopes to increase its ATMs to 500 before the end of the current fiscal. Currently branch strength stands at around 170.

Speaking at the first AGM after the merger of IDBI and IDBI Bank, Shetty said that the average cost per branch would be around Rs40-45 lakh of capital expenditure and Rs5-8 lakh of revenue expenditure.

IDBI is also looking at overseas expansion and has set up a special team to look into possible locations for new branches.

About the bank's insurance foray, Shetty said that a final decision would be taken within three months about the nature and composition of the venture and the likely partners.

Shetty also said that deposit rates were likely to become tighter and may see an upward movement of 10-25 basis points in 6-9 months. Lending rates are also likely to see an upward trend on account of Government borrowing and liquidity getting tighter, he said.

During the first quarter, IDBI raised about Rs 500 crore worth of Tier-II capital, and according to Shetty the bank will continue to raise Rs750-800 crore every quarter.
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Govt stock sale oversubscribed
Mumbai: The auctions of the 7.37-Government Stock 2014 and the 7.50-Government Stock 2034 were oversubscribed on Thursday.

The bond market saw some selling as a result of the auction. Dealers said that while the cut-off price of Rs102.11 of the 7.37 paper was in line with market expectations, the cut-off price of Rs99.44 of the 7.50 paper was below the expected price of Rs100-Rs 100.50.

For the 7.37 paper, the notified amount was Rs5,000 crore. The Reserve Bank of India received 292 competitive bids amounting to Rs10,455.95 crore. The cut-off price was Rs102.11 (7.04 per cent YTM). The RBI accepted 122 bids, amounting to Rs4,978.66 crore. The partial allotment percentage amounted to 58.61 per cent from 13 bids.

The amount of underwriting accepted from primary dealers was Rs5,000 crore. The weighted average price was Rs102.18. The RBI also received 19 non-competitive bids, amounting to Rs21.34 crore.

For the 7.50 paper the notified amount was Rs3,000 crore. The RBI received 129 competitive bids amounting to Rs4,889 crore. The cut-off price was Rs99.94 .The central bank accepted 86 bids amounting to Rs2,984.79 crore.
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