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Rupee ends flat - bond prices rise
Mumbai: The rupee, though volatile against the dollar on fears of a hike in interest rate, ended flat at 45.06/07, as compared to Tuesday's close of 45.06/07.

Forwards: The six-month premium closed at 0.50 per cent (0.56 per cent) and the one-year at 0.46 per cent (0.51 per cent).

Bonds: Bond prices went up for the second day in a row following the announcement of the monetary policy. Prices went up by about 15-25 paise.

G-Secs: The 7.37-9 year-2014 paper closed at Rs102.56 (6.96 per cent YTM), higher than Tuesday's level of closed at Rs102.47 (6.98 per cent YTM). The 10.25 per cent - 16 year- 2021 paper closed at Rs125.66 (7.44 per cent YTM), higher than the previous close of Rs125.53 (7.45 per cent YTM).

Call rates: Call rates opened at 5.25 per cent following the 25 bps hike in reverse repo and repo rates. It traded between 5.25-5.30 per cent during the day (5.25 per cent).

Reverse Repo: In the one-day reverse repo, under the liquidity adjustment facility, the RBI received and accepted 37 bids amounting to Rs19,205 crore.

CBLO: In the CBLO market, there were 309 trades for Rs13,787 crore in the rate range of 4.15-5.25 per cent.
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HDFC to team up with WL Ross & Co.
Mumbai: US-based private equity firm WL Ross & Co LLC and Housing Development Finance Corporation Ltd are teaming up for a fund aimed at restructuring and turning around Indian companies.

The agreement includes funding bankrupt firms, spin-offs, privatisations and re structuring non-performing assets or loans.

An HDFC official said Ross would raise funds from overseas investors to put into Indian companies. HDFC will pick up about 19.5 per cent in the asset management firm that will be set up to manage the fund, he said.

India has the largest non-performing assets market in Asia, after Japan and China, WL Ross said in a statement.
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Franklin Templeton in tie up with OBC
New Delhi: Franklin Templeton (India) has entered into a memorandum of understanding with Oriental Bank of Commerce (OBC) for the distribution of its mutual fund products through the bank's branches. The tie up would help the mutual fund's products reach a wider section of the population.
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Bank and Finance cos. results: IndusInd Bank, IOB

IndusInd Bank net down 47 per cent in Q2
Mumbai: Indusind Bank's net profit declined 46.5 per cent to Rs31.49 crore during the quarter ended September 30, from Rs58.91 crore during the corresponding quarter last year.

The decline was due to lower net interest margin and higher operating expenses.

The total income of the bank dropped to Rs352.03 crore from Rs357.22 crore. Net interest income was lower at Rs91.42 crore (Rs 99 crore) while the capital adequacy ratio has come down to 10.88 per cent (13.17 percent).

The net profit in the six-month period ended September 30, also declined by 31.17 per cent to Rs71.85 crore from Rs104.39 crore during the year-ago period.

IOB net rises 25 pc in Q2
Mumbai: Indian Overseas Bank has reported a net profit of Rs198.49 crore for the quarter ended September 30, 2005, up from Rs158.33 crore in the same quarter last year, an increase of 25.36 per cent, despite a shortfall of Rs25 crore in treasury income.

Total income for the quarter increased to Rs1,250.32 crore (Rs1,183.25 crore). Net interest income was at Rs517.3 crore (Rs465.25 crore).

Other income fell to Rs174.55 crore (Rs200.97 crore). This was mainly on account of fall in profits from treasury, which decreased to Rs69 crore (Rs95 crore).

Total expenditure was at Rs866.95 crore (Rs782.02 crore).

Total deposits stood at Rs47,393 crore while total advances were at Rs29,328 crore.

Capital adequacy ratio was at 13.65 per cent (13.47 per cent).

The ratio of net non-performing assets to total assets fell to 0.94 per cent (1 per cent).

The bank has improved its net interest margin from 4.05 per cent last year to 4.12 per cent this year.
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