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Rupee slides to 8-month low
Mumbai: The rupee fell against the dollar for the third day in a row touching a new low seen last in December 2004, closing at 44.13/14, against Tuesday's close of 44.02.

Forwards market: The 12-month premium closed at 0.5 per cent (0.63 per cent) and the 6-month premium closed at 0.45 per cent (0.66 per cent).

G-Secs: The 7.37 per cent 9-year 2014 paper ended trade at Rs102.0675 (7.04 per cent), lower than the earlier close of Rs102.08 (7.02 per cent YTM). The 10.25 per cent 16-year-2021 paper closed at Rs125.46 (7.4705 per cent YTM), lower from Tuesday's close of Rs125.50 (7.46 per cent YTM). The 7.38 paper 10-year 2015 benchmark paper was dealt at 7.09 per cent levels (7.08 per cent YTM).

Call rates: The inter bank rates opened at 5 per cent and closed at 4.9-5 per cent (5-5.05 per cent).

Reverse repo: In the one-day auction, the RBI received and accepted 40 bids amounting to Rs25,780 crore.

CBLO market: 245 trades for Rs10,979.75 crore in the rate range of 4.78-5 per cent, were realised.
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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 Reserve Bank of India. The notified amount for the 91-day T-bills was Rs4,000 crore, out of which Rs3,500 crore is MSS amount.

The RBI received 77 competitive bids amounting to Rs10,663.17 crore. The cut-off price was Rs98.72. Of these, RBI accepted 27 bids.

The partial allotment percentage was 32.16 from 18 bids. The weighted average price was Rs 98.73.

The central bank also received and accepted two non-competitive bids amounting to Rs2,863 crore.

The notified amount for the 364-day T-bills was Rs2,000 crore, out of which Rs1,000 crore is MSS amount. The RBI received 65 competitive bids amounting to Rs4,141 crore.

The cut-off price was Rs94.69. Of these, RBI accepted 20 bids.
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LIC offers largest ever term cover of Rs.6,000 crore to Infosys staff
Mumbai: The Life Insurance Corporation of India (LIC) has said that it has offered the largest group term life insurance cover to employees of Infosys Technologies Ltd, for a total sum assured close to Rs6,000 crore.

The policy offers graded insurance cover with a maximum of Rs40 lakh depending on the cadre of employees, said a press release.
The policy commenced in 2002 with a total sum assured of Rs1,300 crore.
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IOB asks RBI to exempt it from diluting Bharat Overseas stake
Calcutta: Pursuant to a recent RBI circular barring banks or financial institutions from holding more than five per cent stake in a corporate body, the Indian Overseas Bank has asked the Reserve Bank to allow it to hold on to its 30 per cent stake in Bharat Overseas Bank. According to executive director A.R. Nagappan, IOB has been historically holding 30 per cent in Bharat Overseas,and it was not meant to exercise voting rights or anything else.

Apart from IOB, the Bank of Rajasthan holds 16 per cent in Bharat Overseas, along with Vysya Bank, which has 14.66 per cent, Federal Bank with 10.67 per cent, Karura Vysya Bank and South Indian Bank 10 per cent each and the balance 8.67 per cent is held by Karnataka Bank.

The bank also announced that it has tied up with Tata Mutual Fund to sell the latter's mutual find products. Officials said that they expect to earn a fee-based income of Rs75 crore in the current financial year.

The bank hopes to do overall business worth Rs86,000 crore in the current financial year, with Rs33,000 crore by way of credit and Rs53,000 crore in deposits. Last year, the bank had done business worth Rs71,000 crore.

The capital adequacy ratio of the bank stands at 14 per cent and it has no immediate plans to raise Tier- I capital in order to dilute the government holding. The government holds 62 per cent in the bank. The bank has a net non-performing asset of one per cent and a gross NPA of 5 per cent.

The bank plans to raise Rs500 crore Tier-II capital in the fourth quarter of this fiscal officials said.
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