Rupee remains flat
Mumbai: The rupee remained flat against the dollar on Tuesday closing the day at 44.30, unchanged from Monday's close at 44.29/30.

Forwards: In the forward premia market, the six-month closed at 1.78 per cent (1.87) and the 12-month at 1.37 per cent(1.4).

G-secs: The 8.07 per cent-11 year-2017 paper ended at Rs106.65 (7.18 per cent YTM), almost unchanged from Monday's close at Rs 06.64 (7.18 per cent YTM). The recently auctioned 9.39 per cent-5 year-2011 paper closed at the same level.

Call rates: The call rate closed at 7.20 (6.50/60) but deals were also done at 7.5 per cent.

Repo auction: In the first two-day repo auction, the Reserve Bank of India received 34 bids for Rs16,400 crore and one bid for Rs25 crore in the reverse repo auction. In the second two-day reverse repo auction, RBI received three bids for Rs600 crore and 19 bids for Rs8,120 crore in the repo auction.

CBLO: In the CBLO market, there were 281 trades for Rs11,745.45 crore in the 5.30-6.45 per cent range.
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BoB to fund expansion through offer
New Delhi: The proceeds from Bank of Baroda's (BoB) 7.1 crore equity shares follow-on-offer will be used to comply with Basel-II norms, fund business expansion, including foray into life insurance and stock broking business.

The follow-on-public offer, opening on January 16 and closing on January 20, is likely to fetch the bank Rs1,600-1,800 crore. The bank's stock was down 2 per cent today and closed at Rs251.

The bank is likely to issue the shares on a discount for which it will fix a price band on the eve of the offer date.

The bank plans to increase funding to corporates, SMEs and infrastructure sector where it sees a greater potential. BoB is also eyeing a foray into insurance and broking business where it does not have a presence.
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New equity scheme to be launched by UTI MF
Hyderabad: UTI Mutual Fund has launched a new equity oriented scheme 'UTI Leadership Equity Fund' which closes on January 30, 2006.

According to UTI AMC chief marketing manager K Madhav Kumar the scheme will re-open for continuous purchase and redemption from February 28.

The scheme would invest the funds of the scheme in stocks that are 'leaders' in their respective industries/ sectors/sub-sector.
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Birla MF enters into distribution tie up with Bank of Rajasthan
Mumbai: Birla Mutual Fund has signed a memorandum of understanding (MoU) with Bank of Rajasthan (BoR) to distribute and market Birla Mutual Fund products through its 425 branches.

The bank will facilitate the distribution of products through its network of 425 branches nationally, of which more than 270 branches are interconnected.

Initially, the products would be sold through 15 branches that would subsequently rise as per demand.

The tie up is expected to fetch Rs15-20 crore by March 31, for the bank. The Birla Mutual Fund, as on December 31, 2005, has asset under management in excess of Rs13,000 crore.
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M&M Finance plans IPO
Mumbai: Mahindra & Mahindra Financial Services, the non-banking finance arm of Mahindra & Mahindra plans to enter the capital market with a public issue of two crore equity shares of Rs10 each, at a price to be decided through book-building process.

The company has filed its draft red herring prospectus with the SEBI.

The issue comprises a fresh issue of one crore shares of Rs10 each and an offer for sale of one crore shares by existing shareholders, it said, adding that the equity shares are proposed to be listed on the NSE and BSE.

A total of 60 per cent of the issue will be allocated to Qualified Institutional Buyers (QIB) out of which, 5 per cent will be available for allocation to mutual funds registered with the SEBI and the remaining QIB portion shall be available to QIB bidders including mutual funds, subject to valid bids being received at or above the issue price.
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HDFC Bank Q3 net up 31 pc
Mumbai: HDFC Bank has announced a 31.28 per cent rise in net profit at Rs224.40 crore for the quarter ended December 31, 2005, as compared to Rs170.93 crore for the same quarter in the previous fiscal.

Total income has increased 50.67 per cent to Rs1,475.94 crore for the quarter ended December 31, 2005, from Rs979.55 crore in the year-ago period the bank informed the Bombay Stock Exchange.
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Union Bank board approves FPO
Mumbai: The board of the Union Bank has approved an issue of up to Rs4.50 crore shares by way of a follow-on public offering.

The issue will be through the book-building route, following which the share holding of the Government might come down from 60.85 per cent to 55.43 per cent.

The issue was aimed at shoring up the capital adequacy ratio in view of the robust growth in credit and to meet the Basel-II requirements, he said.

The draft red herring prospectus has been filed with SEBI and approval was awaited, he said, adding the bank has already received approval of the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The bank has been very active in rural lending and the agricultural advances of the bank stood at Rs7316.76 crore at the end of September 2005, forming 15.98 per cent of the net bank credit.

During the six months ending September 2005, agricultural advances recorded a growth of 16.85 per cent, he said.

The bank also provided finance to infrastructure projects. As on Sept 30, 2005, infrastructure finance amounted to Rs4532 crore spread over different sectors, including power at Rs2,427 crore, telecom at Rs950 crore, road and ports at Rs782 crore and others Rs373 crore.
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Andhra Bank to expand overseas
Mumbai: Public Sector Andhra Bank will open its first overseas representative office in Dubai soon. Due to the death of the King, operations to start the office in Dubai were delayed and it would take one more month to set up the office there, said V R Venkataraman, the general manager of the bank said.

Depending on the success of the Dubai office, which would cover the entire Middle East and the nearby areas, the Bank would start more representative offices in other parts of the world, Venkataraman said.

Asked about acquisitions, he said as of now there was no plan for acquiring any banks.
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