Rupee higher; bonds fall
Mumbai: The rupee was up against the US dollar on Monday as it followed the euro.

The rupee opened higher at 46.17/18 and fell to a low of 46.21 during the intra-day trade. However, then it edged up steadily to end trade at 46.11/12, up from the earlier close of 46.20/21.

Forwards: The forward premia closed slightly higher, with the six-month premium ending at 0.9 per cent (0.89 per cent) and the one-year at 0.72 per cent (0.67 per cent).

Bonds: The bond market saw prices fall by about 10-15 paise due to liquidity worries. The market is also worried about outflows arising out of the redemption of the Indian Millennium Deposits, scheduled for later this month.

G-Secs: The 8.07-12 year-2017 paper opened at Rs106.3 (7.2328 per cent YTM) and closed at Rs106.26 (7.2373 per cent YTM), down 10 paise from Friday's level of Rs106.33 (7.23 per cent YTM). The 10.25-16 year-2021 paper opened at Rs126.14 (7.3858 per cent YTM) and ended trade at Rs126.05 (7.39 per cent YTM), lower than the earlier close of Rs126.15 (7.38 per cent). Call rates too were tight and closed at 5.75-5.80 per cent (5.35-5.40 per cent), with stray deals happening at 6 per cent.

Reverse Repo: In the first three-day reverse repo auction, the Reserve Bank of India received and accepted eight bids amounting to Rs2,680 crore. In the second auction, it received and accepted six bids for Rs1,345 crore.

CBLO: There were 292 trades for Rs14,189.3 crore in the range of 5.45-5.8 per cent.
Back to News Review index page  

RBI Governor says IMD redemption would be met
New Delhi: Rakesh Mohan, deputy governor, Reserve Bank of India, has said that the central bank is fully prepared to meet outflows due to the India Millennium Deposits redemption late in December.

Mohan said he did not foresee problems in financing the government's borrowing programme in the remaining part of the current financial year to March.

He said the RBI has market stabilisation scheme and liquidity adjustment facility was designed to manage liquidity and there would not be any particular problem in financing (government's) market borrowing given that there is so much liquidity available under MSS.

The government is scheduled to borrow Rs24,000 crore between January 3 and February 22. Its gross borrowing plan for the current fiscal is Rs 1.39 trillion.

The central bank deputy governor said there was outstanding amount of over Rs60,000 crore under the market stabilisation scheme, which was introduced last year to mop up excess liquidity in the system. There are fears that liquidity will be drained when $7 billion IMDs are redeemed on December 29.

The State Bank of India had issued the IMDs to non-resident Indians five years ago.
Back to News Review index page  

Canada exim bank offer finance to imports to India
Mumbai: The Export Development Canada (EDC), Canada's exim bank, is planning to finance up to $600 million of import by Indian companies from Canadian corporations in 2006.

EDC is also looking forward to double the credit to state electricity utilities which are planning to buy technology or equipment, or both, from Canadian companies.

Peter Nesbitt, EDC's chief representative in India said, on the sidelines of a seminar organised by the Confederation of Indian Industries (CII) and the Canadian Consulate, "Our exposure to Indian credit market is around $900 million including power, telecom, auto component and food processing," he said

He added, "We have identified, China, Brazil and India as potential markets for Canadian exports, joint ventures and technical collaborations. Of these India is high on our priorities," he said.
Back to News Review index page  

Canara Bank loans Rs 35 crore to farmers
Mangalore: Canara Bank's Mangalore Circle, which has an agricultural client base of 16,000 in Dakshina Kannada and Udupi districts, has provided Rs35 crore to farmers in these districts till date during current financial year.

The bank has set a target of disbursing Rs60 crore agricultural loans in these districts during the current fiscal.

The bank said in a press release that of the Rs35-crore disbursed so far, Rs27 crore has been disbursed under short-term loan.

Of the 65 branches in these two districts, 38 are in rural and semi-urban areas. To meet the need-based requirements of farmers, the bank has formulated area-specific schemes on vanilla and jasmine cultivation, and rubber development for these two districts. The bank has also advocated the branches to popularise tree-borne oil seed production such as the cultivation of jatropha and neem.
Back to News Review index page  

Deutsche MF plans fixed term plan
Kolkata: Deutsche MF has a proposed a fixed term plan -7, which aims to generate income by investing in debt and money market instruments, normally maturing in line with the time profile of the fund.

The fund, to be benchmarked against Crisil Liquid Fund Index, will have a duration of 90 days from the date of allotment, after which it will be redeemed fully.

The fund will be free to invest across all securities in the debt and money markets. The portfolio may also hold cash at times in line with the prevailing circumstances.
Back to News Review index page  

UCO Bank to implement core banking solution in five years
Kolkata: UCO Bank plans to implement a core banking solution (CBS) in 1,000 branches countrywide within five years that will enable customers to access banking and financial services round the clock anywhere in the world through multiple channels like internet and mobiles.

The bank has chosen Hewlett-Packard (HP) as vendor for CBS, which would be based on Infosys' Finacle solution, V Sridar chairman of UCO bank told reporters.

The bank would concurrently roll out more ATMs across the country with 88 being installed in the current year.

He said by the end of five years, the bank plans to service about 17 million customers running 21 million transactions daily.
Back to News Review index page