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Rupee remains under pressure; bond prices fall
Mumbai: The rupee continued to be under pressure on Tuesday as the month-end demand for the US dollar continued from oil companies and other importers. The Rupee opened at 43.96/97 and closed at 44.04/05, lower than Monday's level of 43.96.

There were not many trades at the 44.05 closing level, which was last seen on August 30 and 31.

Forwards: The forward premia closed lower with the 6-month premium closing at 0.65 per cent (0.85 per cent) and the 12-month premium also closing at 0.65 per cent (0.76 per cent).

Bonds: The bond market was weak with prices falling by about 25-30 paise. The reasons for the decline included rise in US yields, which touched 4.32 per cent, rising crude prices and lack of buying support.

Reverse Repo: In the one-day reverse repo auction, the Reserve Bank of India received and accepted 41 bids amounting to Rs 22,880 crore. Traders are expecting a 25 basis point hike in the reverse repo rate in October.

G-Secs: The 7.37 -9 year - 2014 opened at Rs 102.36 (7 per cent YTM) and closed at Rs 102.17 (7.03 per cent YTM), lower than Monday's close of Rs 102.43 (6.99 per cent YTM). The 10.25 - 16 year-2021 paper opened at Rs 125.89 (7.43 per cent YTM) and ended trade at Rs 125.56 (7.46 per cent YTM), against the previous close of Rs 126 (7.42 per cent YTM).

Call Rate: Call rates were at 5-5.10 per cent (5-5.10 per cent).

CBLO: There were 216 trades for Rs 9,971.20 crore in the rate range of 4-5.25 per cent.
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Dena Bank ties up with Pru ICICI to distribute MF
Mumbai: Dena Bank has entered into an agreement with Prudential ICICI AMC for distribution of its mutual fund schemes.

Under the agreement, the bank will distribute the entire range of Prudential ICICI mutual fund schemes to its customers at its 80 branches, including 26 in Mumbai. Later on the number of branches selling mutual fund schemes will be increased.

Dena Bank, which targets to increase the number of its FinMarts from 41 at present to 100 by the end of the current financial year, aims to generate a revenue of Rs2 crore in the current fiscal by distributing mutual fund products. FinMarts are exclusive one-stop shops for all retail loan products of the bank.
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World exposures to India rise
Washington: According to the latest report of the Institute of International Finance international investors, including venture capital and private equity funds, are stepping up their exposure in India,

The report says that the growing profitability of private sector firms as well as a large volume of funding for expansion will help maintain net inflows of portfolio equity at $9-10 billion a year.

Private flows to emerging markets that began in 2003 has continued this year and are projected to reach a record high of $345 billion this year before slowing to $318 billion in 2006, says the IIF, which represents major banks and financial institutions worldwide.
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CESC concludes global depository shares offer
Kolkata: CESC closed its offer of global depository shares (GDSs), for raising $40 million within a day of its launch on Monday.

CESC made the offer at $5.0437 per GDS comprising one equity share at Rs 222 per equity of Rs 10 each which is at a premium of 0.6 per cent to the average closing price of CESC shares for the past four trading days.

CLSA Asia Pacific Markets and ICICI Securities Inc acted as joint global co-ordinators and joint book runners for this offering. Kotak Mahindra (UK) Ltd acted as the co-lead manager.

CESC will issue 7,930,685 GDS representing about 9.6 per cent of the post-offer equity share capital of the company. The proceeds from the offering will be used primarily for setting up the third 250 MW capacity generating unit at CESC's Budge Budge power station.
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Minimum capital base not to go below Rs100 crore: IRDA
New Delhi: The Insurance Regulatory and Development Authority (Irda) has said that the minimum capital base for insurance companies would not be reduced below Rs100 crore though for health insurance companies it could be fixed at Rs50 crore.

Irda chairman CS Rao said that a draft on the proposed amendments in the Insurance Act, recommended by the KP Narsimhan Committee, would soon be put up for public debate.

However, he said there was no need to reduce the minimum capital base norm for life and general insurance companies.
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BoR plans to expand in South India
Mumbai: Bank of Rajasthan is planning to expand in Southern India. The bank will open six more branches in the south region next three months taking its total number of branches in south India from 14 to 20.

The bank is also planning to increase the share of retail business to total business from 60 per cent to 70 per cent in 2005-06.

The bank, which currently has a net worth of Rs 400 crore, is likely to come out with either a domestic public issue or an overseas issue to raise Rs 500 crore.
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Allhabad Bank to increase loan exposure to farm sector
Kolkata: Allahabad Bank aims to increase loan exposure to the agriculture sector. The bank has said that by March next year 20 per cent of its total credit flow would be to agriculturists.

The bank is eyeing fresh credit delivery to the tune of Rs1,000 crore by the half year ending September 30 and Rs2,500 crore by the end of the next quarter on December 31.

Allahabad Bank has over 66 per cent of its branches in rural and semi-urban areas and disbursed Rs2,025 crore during 2004-05 as against a target of Rs ,102 crore. It recorded a 139 per cent increase in disbursement of fresh credit in fiscal 2005 over Rs848 crore clocked in the previous year.
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