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Rupee weak; bonds rise
Mumbai: The rupee closed slightly lower than the dollar at 45.80 against the previous close of 45.79 on Wednesday.

Forwards: The 6-month premium closed at 0.49 per cent (0.46 per cent) and the 12-month premium ended at 0.45 per cent (0.43 per cent).

Call rates: The call rate closed at 6.20/40 per cent (5.80/90 per cent).

G-Secs: The most active stock was the 7.49 per cent 12-year 2017 paper, which closed at Rs101.38 (7.31 per cent). The 7.37 per cent-9 year-2014 paper ended trade at Rs102.35 (7 per cent), up from the earlier close of Rs102.26 (7.01 per cent YTM). The 10.25 per cent-16 year-2021 paper closed at Rs125.25 (7.47 per cent YTM) higher than the previous close of Rs125.15 (7.48 per cent YTM).

Reverse Repo: In the one-day reverse repo, under the LAF, the RBI received and accepted eight bids amounting to Rs3,345 crore and in the one-day repo auction RBI received and accepted one bid amounting to Rs200 crore.

CBLO: In the CBLO market, there were 327 trades for Rs10,209.05 crore in the rate range of 6-6.406 per cent.
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Govt. allows 49 per cent FDI in Asset Reconstruction Companies
New Delhi: The Government has allowed 49 per cent foreign direct investment in asset reconstruction companies (ARCs) as it tries to speed up the cleaning up of the banking sector's non-performing assets (NPAs).
There was no FDI allowed in ARCs earlier.

An official release from the government says that the Foreign Investment Promotion Board would consider applications from persons/entities eligible to invest in India in the equity capital of ARCs registered with Reserve Bank of India under the FDI route subject to the condition that the maximum foreign equity shall not exceed 49 per cent of the paid up capital of the company.

In case where any individual investment exceeds 10 per cent of the equity, the ARC should comply with the provisions of Section 3(3)(f) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. It adds that before registering the ARC, the RBI must satisfy itself "that a sponsor is not a holding company of the securitisation company or reconstruction company as the case may be, or does not otherwise hold any controlling interest in such securitisation company or reconstruction company."

At present the Asset Reconstruction Company of India is the only functioning ARC in the country.
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Chidambaram: Fall of rupee 'orderly and acceptable'
Mumbai: Finance minister P Chidambaram, said the fall in the Rupee is not a cause of concern for the government at the moment. According to him orderly movements both ways is acceptable and only disorderly movement should cause concern.

Chidambaram said the rupee has depreciated against the yen, pound and euro over the past few months and has only appreciated against the dollar. That is because the dollar has appreciated very strongly against the Euro, he added.
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Indian Bank gets customer friendly
Mumbai: As parts of its efforts to focus better on its customers, Indian Bank has introduced multi-city banking facility to the customers of its 150 branches that were interconnected through Core Banking Solutions (CBS) in 41 centres.

Through the multi-city cheque available through the multi-city banking, a customer who maintains a minimum balance of Rs25,000 in a SB account or Rs1 lakh in current account can do credit or debit transactions from any one of the interconnected branches under CBS network. This facility enabled immediate credit to the beneficiary's account or to the drawer.
As credit is available immediately, there is no need for outstation clearance for multi-city cheques.

Indian Bank has targeted to implement CBS in 500 branches by March next year with a long-term plan to cover all district headquarters to facilitate customers located at rural and semi-urban centres.

Indian Bank is targeting to raise its fee-based, non-interest income with a growth of 16 per cent through cross selling of financial products like mutual fund and insurance and offering technology-based services through CBS.
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Tally Solutions forms alliance with ICICI Lombard General Insurance
Kochi: Tally Solutions has tied up with ICICI Lombard General Insurance to offer customers an combined insurance proposal that would not only take care of their accounting needs but also protect their businesses from natural and man-made disasters.
Tally 7.2 is now available with free business insurance cover worth Rs5 lakh to all customers who buy the software between November 1 and December 15.

The insurance combo includes Rs2 lakh of fire (property) insurance, Rs2 lakh of burglary insurance and Rs1 lakh of cash in safe insurance.
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