Rupee gains against dollar
Mumbai: The rupee gained against the dollar on Monday closing at 44.29/30.

Forwards: In the forward premia market, the 12-month closed at 1.4 per cent (1.10) while the 6-month ended at 1.87 per cent (1.40).

G-Secs: The 8.07 per cent 11-year 2017 paper closed at Rs106.64 (7.18 per cent YTM), lower than Friday's Rs106.67 (7.18 per cent YTM). The 10.25 per cent 15-year 2021 paper ended at Rs126.61 (7.33 per cent YTM), lower than the previous close at Rs126.63 (7.33 per cent YTM).

Call rates: The call rate closed at 6.50/60 per cent (5.5).

Reverse Repo: In the first one-day repo auction, the Reserve Bank of India received 18 bids for Rs8,820 crore and no bids in the reverse repo auction. In the second one-day reverse repo auction, the RBI received three bids for Rs515 crore and 15 bids for Rs4,605 crore in the repo auction.

CBLO: In the CBLO market, there were 288 trades for Rs13,699.50 crore in the 6.15-6.30 per cent range.
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Federal Bank to takeover Ganesh Bank
Mumbai: Kerala based, Federal Bank, has made an offer for the Ganesh Bank of Kurundwad, Maharashtra, recently placed under a moratorium by the RBI. Based on the Federal Bank's offer, the RBI has prepared a draft scheme of amalgamation and given both the banks two weeks, i.e.up to January 21, to decide.

Federal Bank officials have estimated the cost of the takeover at Rs10-15 crore and are awaiting RBI estimates. The merger will increase Federal Bank's exposure in Maharashtra where Ganesh Bank has 24 branches. Currently, Federal bank has 20 branches in the State.

Officials said Ganesh Bank is a good fit, as it would also help Federal bank improve its agriculture and retail lending.

Federal Bank's retail portfolio is 24 per cent of the total advances, while agriculture lending is 10 per cent. Federal Bank has, among other things, agreed to pay the depositors fully.

On Monday, Federal Bank's shares ended at Rs185.05 on the BSE, 0.4 per cent lower from the previous close of Rs185.80.
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Remit2India offers NRI services
Hyderabad: Remit2india, part of TimesofMoney.com of the Times Group, has launched NRI services here, coinciding with the concluding ceremony of Pravasi Bharatiya Divas-2006.

The services range from basic needs such as money transfer to investment and advisory services all under one roof.

With the launch of new services bouquet, the NRIs would be able to buy and sell mutual funds, get investment advisory services, avail of home loans, get assistance in buying and selling real estate. The Times Group outfit has entered into alliances with 15 mutual fund companies and two stock broking firms towards realizing these arrangements.
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YES Bank reports Rs.14.5-cr profits in Q3
Mumbai: YES Bank has registered a net profit of Rs14.5 crore for the third quarter ended December 31, 2005, on account of an increase in advances and non-interest income against a loss of Rs33 lakh in the corresponding period a year-ago.

The bank reported higher total income to Rs81.74 crore (Rs 15.24 crore), while total expenditure was Rs55.58 crore (Rs12.25 crore). Net-interest income increased to Rs26.93 crore (Rs4.55 crore). Other income was Rs24.96 crore (Rs7.79 crore).

The bank now plans to raise Rs200-crore Tier-II capital before March 2006. The bank made a provision of Rs2 crore, in line with RBI guidelines of raising the risk weightage of general loans from 0.25 per cent to 0.4 per cent.

The bank's advances were higher at Rs19.11 crore (Rs5.67 crore), while total deposits increased to Rs17.78 crore (Rs2.98 crore).

Capital adequacy ratio (CAR) was 16.22 per cent against 28.18 per cent last year. The bank continued to have no NPAs.
On Monday, shares of Yes Bank moved down to Rs69.25 from the previous Rs71.2 on the BSE.
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SBI Funds Mgmt., UTI and LIC AMC to be NIF fund managers
Mumbai: SBI Funds Management, UTI AMC and LIC AMC will be the fund managers for the National Investment Fund (NIF), constituted last January, into which the proceeds from the divestment of the Govt.'s minority stake in public sector enterprises could be routed.

The aim is to maintain the funds outside the Consolidated Fund of India and have it managed professionally by fund managers sponsored by state-owned entities. The plan envisages directing 75 percent of the fund's annual income towards social sector projects and 25 per cent for capital investment in select PSUs. The NIF is expected to be operationalised early next fiscal. If divestment picks up, the fund managers will be in a position to handle a substantial corpus. But the mandate now will be to provide sustainable returns without impacting the corpus.

The fund's capital will have to be protected by the fund managers entrusted with the management of the corpus. The broad guidelines for investment by these managers will be finalised after discussions.
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