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Rupee dips - securities flat
Mumbai: The rupee went down on Tuesday, closing at 43.91 against its earlier level of 43.8350.

Forwards market: The 6-month premia closed at 0.65 per cent (0.65 per cent) and the 12-month premia at 0.68 per cent (0.62 per cent).

G-Secs: The 10.25-16 year-2021 paper closed at Rs126.36 (7.38 per cent YTM), almost unchanged from the earlier level of Rs126.35 (7.38 per cent YTM). The 5.69-13 year-2018 paper closed at Rs87.29 (7.2099) against Monday's level of Rs87.29 (7.21 per cent YTM). The 7.38-10 year-2015 benchmark paper was dealt at Rs102.64 (7 per cent YTM) against the previous level of Rs102.55 (7.02 per cent YTM).

Call rates: The inter bank rates were between 4.9 and 5.05 per cent (5-5.05 per cent).

Reverse repo: In the one-day auction, the RBI received and accepted 48 bids amounting to Rs47,150 crore.

CBLO market: 237 trades for Rs 8647.95 crore, in the rate range of 3.52- 5.04 per cent, were realised.
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Union Bank of India to offer second public issue soon
Chennai: The Union Bank of India has said that it would soon offer a second public issue. The issue size of 4.50 crore shares would reduce the Government's stake in the bank from its current 60.85 per cent to 55.45 per cent.

According to the bank's chairman, Cherian Varghese, the issue was aimed at shoring up the capital adequacy ratio of the bank and also to meet the Basel II requirements. The bank had already crossed the mandatory nine per cent credit adequacy ratio. It had 12 per cent CDR as of June last.

Varghese also said that the Government had approved the bank's plea for amalgamation of three regional rural banks floated by it. The new bank, with 336 branches, would have deposits and advances to the tune of Rs2,139 crore and Rs646 crores respectively, he said.

The total business of the bank had crossed the Rs1 lakh crore mark this month. As on September 9 2005, the deposits and advances stood at Rs63,881 crore and Rs44,121 crore respectively, for a total business of Rs1,08,002 crore.

The bank would also open 100 branches this year, including ten in Tamil Nadu, he said.
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US$54mn FCCB offering from Deccan Chronicle
Hyderabad: Deccan Chronicle Holdings Ltd has said that it has launched a US$54.02mn foreign currency convertible bonds offering.

The Hyderabad-based company has informed the Bombay Stock Exchange that the bonds are expected to be listed on the Singapore Stock Exchange.

The bonds, having a maturity period of five years, are convertible at a conversion price of Rs522.835 per share, comprising a premium of 60 per cent over the reference share price of Rs326.772, it said.

The bonds carry a zero coupon with a yield to maturity set at 6.90 per cent. The bonds offering is subject to the approval of the shareholders at a meeting scheduled to be held on September 30, 2005, it said.

JP Morgan is acting as the lead manager and sole book runner for this offering, it added.
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SBI MF to offer portfolio management services
Chennai: The SBI Mutual Fund (SBIMF) will shortly enter the Portfolio Management Services (PMS) business in order to serve the investment needs of high net worth individuals and corporates.

SBI MF would also come out with schemes which will invest in equities abroad, leveraging on the expertise of its French partner Societe General Asset Management, when such investments are permitted to be made, Managing Director P G R Prasad told reporters here. According to Prasad, Societe General, which handles $330bn worth portfolio, will provide the MF with the required expertise. Societe General holds 37 per cent stake in SBI MF and has a presence in all major markets.

According to Prasad said the SBI MF had received approval from the Securities and Exchange Board of India (SEBI) for launching the PMS business and they hoped to launch the PMS business in 20-25 days.

As per the scheme, the minimum limit for high net worth individuals is set at Rs20 lakh while for institutions and corporates, the minimum requirement is Rs1 crore. A separate division within the SBI Mutual Fund will handle the PMS business.
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HSBC launches private label card for Trent's Star India Bazaar
Mumbai: HSBC has launched a private label card for Tata Group's retailing chain Trent's hypermarket store 'Star India Bazaar' and said it is looking forward to introduce such initiatives with other retail chains as well.

The Star India Bazaar private label card, which offers discounts to members, will be offered in two forms - additional card linked to an HSBC credit card account or on a standalone basis.

Star India Bazaar currently has one store in Ahmedabad and has plans to open a store each in Mumbai and Bangalore.

The card will not be part of the Visa/Master Card network and will be valid for use only in Star India Bazaar outlets.
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