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Rupee flat; bonds fall
Mumbai: The rupee ended flat against the US currency ending at 45.76/77, slightly higher than Thursday's close at 45.77/78.

Forwards: In the forward market, the 6-month premium closed at 0.53 per cent (0.5) and the 12-month at 0.46 per cent (0.43).

G-Secs: The 7.49 per cent - 12-year 2017 paper closed at Rs101.62 (7.28 per cent YTM), slightly lower than Thursday's Rs101.63 (7.27 per cent YTM). The 7.37 per cent - 9- year 2014 paper ended at Rs102.50 (6.97 per cent YTM), down from Thursday's Rs102.54 (6.96 per cent YTM). The 7.38 per cent-10-year 2015 paper was dealt at Rs102.04 (7.08 per cent YTM).

Call rates: The call rate closed at 6.20-30 per cent (6.30-40).
Reverse repo: In the three-day repo auction, the RBI received and accepted three bids amounting to Rs1,250 crore.

CBLO: There were 278 trades for Rs11,138.45 crore in the rate range of 5.95-6.25 per cent.
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Banks not to hike interest rates: Chidambaram
New Delhi: Finance minister, P. Chidambaram, said banks are likely to ensure a stable interest rate regime during the current fiscal.

Chidambaram told the press after his meeting with chief executives of public sector banks here on Friday that banks are expected to maintain the current interest rate regime for all productive purposes such as investment in plant, machinery, civil construction and machinery imports, during the remaining part of the current fiscal.

He added there was ample liquidity in the system to finance productive investments.

On the need for banks to mobilise fresh capital in the wake of the impending Basel-II norms, the Finance minister said he had requested the Reserve Bank of India to issue early guidelines that would enable banks to raise Tier-III hybrid capital.He said the guidelines were expected to come out before the current fiscal ends.

He said consolidation of banks would begin soon and banks were already talking to each other to explore merger possibilities.
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Maharashtra govt. issues notices to banks on stamp duty dues
Mumbai: The Maharashtra Government has issued a 15-day notice to banks for the recovery of stamp duty dues on sale and purchase of government securities. The State Government has also threatened to take action against those that fail to respond and submit the details of payments made within the stipulated time.
Banks have not been paying stamp duty ever since the State Government introduced the new stamp duty structure through an Ordinance in May 2005.

Bankers said, it was not clear whether deals settled through the electronic system could be considered as contracts attracting stamp duty. Besides, 90 per cent trades in government securities were inter-bank, said a dealer.

As per the revised scheme, records of transactions in government securities executed in Maharashtra attract a stamp duty of Rs50 per every Rs1 crore or part of the value of securities traded.

Before than change, stamp duty on securities transaction was Rs1,000 per deal without any ceiling on the value of securities traded, which was paid by brokers.
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Dena Bank launches low balance savings account
Mumbai: Dena Bank has launched a deposit scheme called `Dena Alpa Bachat Khata', under which accounts can be opened with Rs10. The amount can also be allowed to go below Rs10 and the account can continue with zero balance.

The relaxed Reserve Bank of India norms relating to Know Your Customer (KYC) are applicable to the scheme so that there is no need for the depositor to undergo full KYC procedure for opening the account.

The aim of the scheme is to extend banking facilities to all, particularly to those persons who have been so far been deprived of the banking facilities, the release said.

Minors above the age of 10 years can also open minor savings account.
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Toyota Kirloskar, Cholamandalam sign pact
Chennai: Automobile company Toyota Kirloskar Motor (TKM) and Chennai-based Cholamandalam MS General Insurance on Friday have entered into an agreement according to which the latter would offer motor insurance to Toyota cars sold in India.

The insurance company said that all Toyota customers can insure their vehicles at the dealer point itself. This will ensure 'cashless' repairs of the insured vehicles with the dealers.

The tie up also envisages Toyota customers to avail 'exceptional' benefits comprising of usage of genuine spare parts, cashless settlement facility and round the clock availability of Cholamandalam customer service professional at a toll free number.

The dealers themselves could issue the policy to the customers through the insurance company's 'e-Policy'.

Cholamandalam also plans to introduce web based 'e-Claim' system to reduce the claim period, they said.
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Cholamandalam Fin subsidiaries to merge
Chennai: Wholly owned subsidiaries of Cholamandalam Investment and Finance Company, Cholamandalam Securities and Cholamandalam Distribution Services, are merging as one entity.
Cholamandalam Distribution Services sells financial products like mutual funds, fixed deposits, life insurance, shares and debentures and home loans, both in-house and third party, to corporate, high net-worth and retail clients.

The company operates from more than 20 cities and mobilises over Rs1,000-crore investments in a year.

Cholamandalam Securities is a securities brokerage firm offering stock broking and equity research services to institutional investors, including many of the largest mutual funds in India, and to select individual clients.

The company is a member of the Bombay Stock Exchange and the National Stock Exchange. It is also a depository participant with NSDL.
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Sarvodaya Mahila Coop. Bank licence annulled
Mumbai: The Reserve Bank of India has annulled the licence of the Sarvodaya Mahila Co-operative Bank, of Burhanpur in Madhya Pradesh in order to protect the interest of depositors.

RBI said the Sarvodaya Mahila Co-operative Bank had ceased to be solvent, and all efforts to revive it in consultation with the government of Madhya Pradesh had failed.
The registrar of Co-operative Societies, MP has been requested to issue orders for winding up the bank and appointing a liquidator.

On liqudation every depositor is entitled to repayment of his deposit up to a monetary ceiling of Rs 1,00,000 from the Deposit Insurance and Credit Guarantee Corporation (DICGC), RBI said.
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Bank of Rajasthan and Visa International to launch credit card
New Delhi: Bank of Rajasthan, a leading private sector bank, will launch a credit card in association with Visa International in a month's time, according to a senior bank executive.

Initially, the bank will offer the credit card to its own customers and proposes to sell one-lakh cards, in two versions, in two years. Bank of Rajasthan has a strategic tie-up with LIC and United India Insurance Company, and sells life and non-life insurance products. It is planning to float a joint venture with some public sector banks, to sell non-life products directly.
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