document.writeln("

Rupee recovers lost ground - securities decline
Mumbai: The rupee recovered some of its recent losses on Tuesday against the greenback on the back of fresh dollar supply. The domestic currency finally closed at 45.79 against Monday's close of 45.90/91.

Forwards market: The 6-month premium closed at 0.46 per cent (0.41 per cent) and the 12-month premium ended at 0.43 per cent (0.39 per cent).

G-secs: In the bond market, the 7.37 per cent-9 year-2014 paper ended at Rs102.26 (7.01 per cent YTM), lower than Monday's close at Rs102.34 (7 per cent YTM). The 10.25 per cent-16 year- 2021 paper closed at Rs125.15 (7.48 per cent YTM), down from Monday's Rs125.37 (7.46 per cent YTM).

Call rate: The inter bank rates closed at 5.80/90 per cent (5.60/80 per cent).

Reverse repo: In the one-day auction, under the LAF, the RBI received and accepted 11 bids amounting to Rs5,955 crore.

CBLO market: 299 trades for Rs11,073.05 crore in the rate range of 5.45-6 per cent, were realized.
Back to News Review index page  

IL&FS Investment raises US$153mn by way of private equity
Mumbai: IL&FS Investment Managers Limited (IIML) has raised US$153mn via its Leverage Indian Fund (LIF), as against a targeted amount of US$120mn, as part of its private equity fund mobilisation.

The fund was also co-sponsored by Punjab National Bank and Taib Bank, Bahrain. "The fund investors include a diverse set of both Indian and international institutional investors," said IL&FS in press release.

With this closing, IIML now has over US$400mn under active fund management.

In the past funds managed by IIML have earned returns in excess of 20 per cent on an annualised basis, said a press release issued by the company.
Back to News Review index page  

Exim Bank extends US$50.40mn LoC to Fiji Sugar Corp.
Mumbai: At the behest of the Government of India, the Export-Import Bank of India (Exim Bank) has extended a Line of Credit (LoC) of US$50.40mn to the Fiji Sugar Corporation Ltd, Fiji Islands.

As per the agreement, Exim Bank will reimburse 100 per cent of contract value to the Indian exporters, upon the shipment of goods and services.

Ross McDonald, chairman, Fiji Sugar Corporation Ltd. and Ms Deepali Agrawal, Exim Bank's resident representative in Singapore, signed the LoC agreement in the Fiji Islands on Monday.

Sugar processing accounts for one-third of all industrial activity in the Fiji islands. Sugar exports and a growing tourist industry are the major sources of foreign exchange for the country. Fiji's real gross domestic product is estimated to have grown by an estimated 3.6 per cent in 2004.

India's main exports to Fiji Islands are gems and jewellery, readymade garments, manmade yarn fabrics, manufactures of metals and drugs, pharmaceuticals and fine chemicals.

Exim Bank has in place a number of LoCs for promoting India's exports to countries in Africa, Asia, Latin America, East Europe and Russia.
Back to News Review index page  

Welspun-Gujarat FCCB issue raises US$75mn
Mumbai: Welspun-Gujarat Stahl Rohren Ltd has said that it has raised US$75mn, including a greenshoe option of US$10mn, through a foreign currency convertible bonds (FCCB) issue.

These zero coupon bonds have a tenor of five years and are convertible into equity shares at a premium of 60 per cent to the BSE closing price of Rs101.35 on November 7.
Back to News Review index page  

Credit Suisse opens subsidiary in India
Mumbai: Credit Suisse, a global financial services provider, has opened its subsidiary Credit Suisse Consulting (India) Ltd here on Monday. The subsidiary, which is being set up as a non-banking financial company, will provide financial advisory and consultation services.

Michael R. Strasser will head the office in India.
Back to News Review index page  

S&P assigns 'BB+' rating for Tata Power debt
New Delhi: Global rating agency Standard & Poor's has affirmed the 'BB+' rating assigned to long-term foreign and local currency corporate credit of Tata Power.

The outlook on the rating is stable, although there is deterioration in the credit-protection parameters for the company in the fiscal year ended March 2005.

The ratings reflect the regulatory protection available to the company for the Mumbai licence, its improved operating efficiency and competitive position, and the stronger financial profile of its bulk customers.

"The ratings are constrained by its high sensitivity to regulatory action in the Mumbai license area, its exposure to riskier investments and increasing competition, and limited opportunities in the core markets of the company," Standard & Poor's credit analyst Anshukant Taneja said.

Back to News Review index page  

Banking and financial cos. results: City Union Bank, Indian Bank

City Union Bank reports higher Q2 net
The City Union Bank (CUB) has reported a net profit of Rs12.44 crore for the second quarter of the current year, 35 per cent higher than Rs9.21 crore in the corresponding period of last year. This has been achieved despite the provisions doubling to Rs11.9 crore, from Rs6 crore.

According to the CUB Chairman, S. Balasubramanian, the bank intended to add 16 more branches in the current year to its existing network of 125 branches.

Balasubramanian also said that the bank had joined the National Financial Switch, through which its ATM cards can be used at 5,170 ATMs of 15 other banks across the country.

According to bank officials higher provisioning meant the bank might not have to provide any more in the second half of the current year. They also said that the bank's investment book of around Rs1,000 crore was well insulated against interest rate increases. As much as 80 per cent of the investments are in the held-to-maturity category.

The rest of the investments are also not very sensitive to interest rate rises.

Indian Bank H1 net profit at Rs.242 crore
Indian Bank has reported a net profit of Rs242 crore for the first half of the current year. According to the bank's chairman and managing director, K.C. Chakrabarty, this is the first `quality' net profit in a decade, because it is more than the interest earned on recapitalisation bonds.

At a press conference Chakravarti said: "We have a net profit even after servicing the entire capital."

Indian Bank was recapitalised to the extent of about Rs4,500 crore in the form of interest-bearing bonds. Back-of-the-envelope calculations show that the bank earns interest anywhere between Rs300 crore and Rs400 crore.

Operating profit, however, was lower at Rs420 crore, down from Rs540 crore in the first half of last year.

In the first half of last year, the bank had earned a treasury income of Rs116 crore against none in the period under review. Also, in the first half of the current year, the wage bill was higher by Rs78 crore.

Indian Bank's net profit was substantially nourished by higher recoveries of NPAs, to the tune of Rs200 crore. Chakrabarty said he expected another Rs200 crore-Rs250 crore from recoveries in the second half.

The bank has also launched `multi-city banking'. The multi-city cheques substitute demand drafts. The facility enables immediate credit to the beneficiary's account. This has been possible because the bank has brought 150 of its branches under `core banking solutions', under which transactions at all the networked branches are processed at a centralised server.
Back to News Review index page