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Rupee falls to 9-month low against dollar
Mumbai: The rupee fell against the dollar to a
nine-month low due to heavy demand from importers and along with the global fall of currencies against the dollar.

The rupee opened at 44.11/12 and fell further to 44.13. It ended the day at 44.2150/2250, down from Monday's close at 44.13/14.

Forwards: The premia rose in the forward market. The six-month premium closed at 0.90 per cent (0.75 per cent) and the 12-month premium closed at 0.77 per cent (0.72 per cent).

Bonds: In the bond market, prices initially fell by 15-20 paise as a reaction to the announcement of the Rs9,000-crore auction on Monday. However, they recovered before closing.

G-Secs: The 7.37-9 year-2014 paper opened at Rs101.75 (7.09 per cent YTM) and closed at Rs101.91 (7.07 per cent YTM), slightly lower than Monday's Rs101.93 (7.06 per cent YTM).

The 10.25-16 year-2021 paper opened at Rs124.98 (7.51 per cent YTM) and ended at Rs125.10 (7.50 per cent YTM) down from Monday' close at Rs125.22 (7.49 per cent YTM).

The 7.38-10 year-2015 benchmark paper was dealt at Rs101.90 (7.11 per cent YTM).

Reverse Repo: The call rate closed at 5-5.10 per cent (5.10 per cent). In the one-day reverse repo auction, RBI received and accepted 35 bids amounting to Rs 23,215 crore.

CBLO: There were 232 trades for Rs 13,712.70 crore in the rate range of 4.80 to 5.10 per cent.
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Indian banks stronger than Chinese banks: S&P
New Delhi: Global rating agency Standard & Poor's has said that Indian banks are financially stronger than Chinese banks although some of the China-based banks have higher credit ratings.

In a report S&P said that the Indian banking sector's credit quality, pre-provisioning profitability, and capitalization fundamentals are stronger than those of its Chinese counterpart, despite the credit ratings on the leading Chinese banks being higher than those on the Indian banks.

Chinese banks have higher rating, as the government is ready to capitalise them and sell their bad loans to state-owned asset-management companies.

These factors put Chinese banks ahead in rating but S&P said these factors 'do not necessarily add to their fundamental strength'.
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SBI, Dabur sign MoU to finance farmers
New Delhi: State Bank of India and Dabur India have agreed to finance farmers for production of medicinal and aromatic crops under contract farming arrangements.

Under an MoU to this effect, the two sides have agreed to finance farmers for cultivation of medicinal and aromatic crops initially in Uttaranchal.
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Foreign banks panic as Re weakens
Mumbai: The spot rupee lost 31 paise against the dollar in two trading sessions last week leading foreign banks to panic in the currency option market.

These banks were seen selling government securities aggressively in the market and buying dollars to pay their corporate clients with whom they have entered into contacts for these options.

The losses to these banks have been roughly estimated at around $250-300 million. Most foreign banks do not cover their positions in these option contracts and decide to hegde only when currency movements turn volatile.

This is known as delta hedging. Most domestic banks do not deal in options and have comfortable funds position unlike foreign banks.

However, buying support emerged from primary dealers who actively bought these gilts and the market did not witness heavy price fluctuations.
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ING Vysya Life announces a bonus
Bangalore: ING Vysya Life Insurance Company has announce a bonus for all participating policy holders. The bonus rates are based on long-term stable returns projected by it.

Investments are predominantly in government securities and bonds, though a small portion has also been invested in equities, a release said.

The bonus rates vary from 7.5 per cent to two per cent on savings-linked policies and 6.3 per cent on retirement plans. As at the end of August this year, the company had issued 29,167 policies across all categories.
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Online processing of motor insurance claims
New Delhi: Now car insurers can process their claims online. The US-based ADP group, has tied up with Tata-AIG and Bajaj Allianz for online processing of motor insurance claims. It division Audatex, will process the claims.

According to officials of Audatex, the online solution offers measurable benefits to all parties in a claim. The garage creates the estimate, adds digital pictures of the damaged vehicle and sends it to the insurance surveyor, who in turn gives survey report online and the whole process is completed in a couple of hours.

This is the first time that such an arrangement is being worked out in India.

While Bajaj Allianz and Tata AIG are using this Web-based solution, companies such as New India Assurance, Oriental Insurance, National Insurance and Royal Sundaram are trying the Audatex software on a pilot basis.
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Mahindra Finance ties-up with HPCL
Mumbai: Mahindra & Mahindra Financial Services has tied up with HPCL to access HPCL's rural distribution network to sell value-added financial products.

Benefits to HPCL from the tie up include credit being extended to its customers and better utilisation of space at its outlets through Mahindra Finance opening branch offices. HPCL would also get increased customer traffic resulting in additional sale of petrol, diesel and other oil products at these outlets.

Mahindra Finance would start its operations under the tie-up at HPCL's `Hamara Pumps' in the rural areas of Maharashtra and Gujarat. Within a month the company hopes to have a presence at all such outlets nationwide.

HPCL currently has 460 low-cost rural retail outlets fashioned as composite units offering fuel and inputs for farmers. It plans to quickly add another 500 outlets, taking the total to nearly 1,000.
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