document.writeln("

Rupee sheds 35 paise
Mumbai: The rupee touched another 10-month low, falling by 35 paise on Monday on the back of strong dollar demand and lack of support from the Reserve Bank of India. The rupee opened at 44.40/42 and finally ended the day at 44.75/76 against Friday's close 44.39/40.

Forwards market: The six-month premium closed at 0.70 per cent (0.82 per cent) and the 12-month premium closed at 0.62 per cent (0.7 per cent).

G-Secs: The 7.37-nine-year-2014 paper closed at Rs102.09 (7.03 per cent yield to maturity/YTM), lower than Friday's level of Rs102.10 (7.04 per cent YTM). The 10.25 16-year 2021 paper ended trade at Rs125.12 (7.49 per cent YTM), up from the earlier close of Rs125.21 (7.48 per cent YTM).

Call rate: The inter bank rates closed at 5-5.10 per cent (5-5.05 per cent).

Reverse repo: In the one-day auction, RBI received and accepted 30 bids amounting to Rs21,510 crore.

CBLO market: 254 trades, for Rs12,808.95 crore in the rate range of 4.80-5.18 per cent, were realised.
Back to News Review index page  

RBI: Banks may treat balance in IFR as Tier-I capital
Mumbai: The Reserve Bank of India, in a bid to help banks to meet capital adequacy as per Basel II norms, has allowed them to treat the entire balance of securities in their investment fluctuation accounts (IFR) as Tier-I capital.

In a notification issued to banks, the RBI on Monday said, "It has now been decided that banks which have maintained capital of at least nine per cent of the risk weighted assets for both credit risk and market risks for both HFT and AFS category as on March 31, 2006, would be permitted to treat the entire balance in the IFR as Tier-I capital. For this purpose, banks may transfer the balance in the Investment Fluctuation Reserve `below the line' in the Profit and Loss Appropriation Account to Statutory Reserve, General Reserve or balance of Profit & Loss Account."

So far, banks were allowed to treat only balance in excess of five per cent in respect of securities available for sale (AFS) and held for trading (HFT) in IFR as Tier-I capital.
Back to News Review index page  

Indian Bank ties up with NCMS for financing of commodities
Chennai: Indian Bank may pick up a stake in the National Collateral Management Services (NCMS), an organisation promoted by the leading multi-commodity exchange NCDEX and has signed an MoU in this regard.

With this agreement, NCMS will take the risk arising out of financing commodities. NCMS specialises in handling risk for financing commodities. The bank expects to provide Rs150 crore to Rs200 crore in financing commodities and construction of warehouses in a year's time, bank officials said.

According to the officials, with banks partnering in lending finance it will enable farmers to get a better price for their produce and consumers get their produce at competitive prices.
Back to News Review index page  

Canbank AMC finalises terms to buy GIC Mutual
Bangalore: Canbank Investment Management Services Ltd (CIMS), the asset management company of Canbank Mutual Fund, has finalised terms for taking over the GIC Mutual Fund.
According to company officials, the acquisition would result in an increase in the assets under management by Rs130 crore and also add another 1,10,000 investors. Canmutual currently has assets under management of at least Rs2,400 crore.
Back to News Review index page  

Banking Results: Yes Bank

YES Bank posts Rs14 crore net in Q2

YES Bank has posted a net profit of Rs14.25 crore for the quarter ended September 30, against a loss of Rs1.74 crore in the corresponding quarter last year largely due to a significant rise in other income.

Total income was Rs58.82 crore (Rs 3.71 crore). Interest earned was Rs36.94 crore (Rs0.35 crore) and other income was at Rs21.88 crore (Rs3.36 crore).

Total expenditure increased to Rs36.34 crore (Rs8.88 crore). Capital Adequacy Ratio is 26.79 per cent as against 79.28 per cent.

For the half year ended September 30, the bank posted net profit of Rs25.5 crore, against a loss of Rs2.8 crore last year. Total income for the same period was Rs106.83 crore (5.67 crore). Interest earned was Rs65.93 crore (Rs2.22 crore) and other income was Rs40.9 crore (Rs3.44 crore).

The board of Yes Bank has proposed to hike the foreign holding in the bank to 73 per cent. Foreign institutional investor holding will increase from 24 to 49 per cent and NRI holding will rise from 10 to 24 per cent. At present, foreign ownership, which includes FDI, FII and NRI holding, is at 45 per cent.

The targeted capital expenditure for the branch expansion and increasing manpower strength during this financial year is Rs54 crore.
Back to News Review index page