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Rupee falls; bonds decline
Mumbai: The rupee fell against the dollar closing at 45.73, lower than Friday's level of 45.68/69.

Forwards: In the forwards market, the 6-month premium closed at 0.47 per cent (0.53 per cent) and the 12-month premium ended at 0.42 per cent (0.45 per cent).

G-Secs: The 7.37 per cent-9 year-2014 paper closed at Rs102.50 (6.97 per cent YTM). On Friday, it had closed at Rs102.46 (6.98 per cent YTM). The 7.49 per cent-12 year-2017 paper, that was recently auctioned, opened at Rs101.54 (7.29 per cent YTM), went up to Rs101.71 and ended at Rs101.58 (7.28 per cent YTM). It had ended trade on Friday at Rs101.49 (7.29 per cent YTM).

Call rates: The call rates closed at 6.30-6.50 (6.75 per cent).

Reverse Repo: In the two-day reverse repo, under the LAF, the RBI received and accepted six bids amounting to Rs835 crore. In the two-day repo auction, the RBI received and accepted three bids amounting to Rs1,900 crore.

CBLO: In the CBLO market, there were 297 trades for Rs11,270.90 crore in the rate range of 6.10-6.35 per cent.
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HDFC introduces variable rate deposit scheme for children
Mumbai: The Housing Development Finance Corporation (HDFC) has introduced a variable rate installment deposit scheme for children, on the occasion of Children's Day. Customers can open the scheme with a minimum amount of Rs1,000 with no ceiling and for a minimum deposit period of 36 months going up to a maximum of 84 months.

This variable rate product is benchmarked to the interest rate under HDFC's fixed rate annual income plan for the corresponding period. The current applicable rate of interest is 6.50 per cent per annum for 36-59 months and 6.75 per cent per annum for deposits placed between 60-84 months, according to release from the company.
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HDFC Bank launches `forex on swipe'
Mumbai: HDFC Bank has launched "Forex on Swipe" for its credit and debit cardholders wishing to avail of foreign exchange while travelling abroad.

Travelers who want to avail of foreign exchange for their trips abroad can now do so by swiping their HDFC Bank credit/ debit cards on electronic data capture terminals at select branches of the bank. This facility is currently available in Mumbai, Delhi, Chennai, Kolkata and Bangalore.
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Andhra Bank to issue 8.5 crore equity shares
Mumbai: Andhra Bank is planning to issue 8.50 crore equity shares for an aggregate value of Rs85 crore, subject to necessary approvals and provisions, the bank informed the Bombay Stock Exchange.

The shareholders at the EGM of the Bank held on October 24, 2005, have authorised the board to issue or offer 8.50 crore new equity shares.
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LIC sees huge success in product sales through banks
Chennai: Life insurance major LIC is expecting its product sales through banks to cross Rs800 crore by March 2006. LIC has already sold products worth Rs100 crore.

The corporation is selling its products through 34 banks in the country.

LIC had achieved a 17 per cent growth in business in the seven months of the current fiscal, by insuring one crore lives against the target of three crore for the fiscal.

First premium collections also registered a 63 per cent growth, netting Rs6,600 crore.

(See: LIC may tie up with Bank of Maharashtra)
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SBI enters into joint venture with TCS
Mumbai: The State Bank of India is forming a 51:49 IT joint venture with Tata Consultancy Services (TCS).

The partnership between TCS and SBI will target the BFSI sector. TCS is already associated with SBI as vendor for rolling out a core banking solution for the latter.

TCS' recent acquisition of Australia-based FNS (whose core banking solution it is implementing for SBI in the largest core banking rollout in the world) seems to have expedited plans for a joint venture between the two.

The new venture will play a key role in deploying FNS products in the role of a preferred systems integrator and leverage the experience both organisations have gained in the core-banking rollout in the State Bank group said a joint statement from the partners.
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RBI gets more powers to cover financial transactions
New Delhi: The government is planning to give more powers to the Reserve Bank of India to regulate and oversee various payment and settlement systems including that of credit cards.

The finance ministry has finalised the draft payment and settlement Bill, to be introduced in the winter session of Parliament beginning on November 23. Official sources said, the Bill would also enable RBI to regulate entities like the Clearing Corporation of India.

With the law in place, finality of financial settlements would be backed by a statute.

Sources say at present, all payments are carried out on a contractual basis and there is no legal teeth to the financial transaction and settlement system in the country. Though there has been no major disruption in the system, the Bill would ensure that such a disaster never occurred.

The law would also enable RBI to authorise payment systems, revoke authorisation and debar system providers from operating sub-standard payment. RBI can also issue standards of access and levy penalty.

Apart from credit card issuers, payment associations like Mastercard and Visa would also be under the RBI lens and with the law in place, RBI would also get the power to give directions to these companies in various matters, like risk mitigation. The finance ministry is currently awaiting the law ministry's nod on the issue.
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