Rupee declines
Mumbai: The rupee fell against the dollar on Tuesday, closing the day at 44.34/35, down from Monday's 44.22/23.

Forwards: In the forward premia market, the 6-month closed at 1.74 per cent (1.82) and the 12-month ended at 1.32 per cent (1.37).

G-Secs: The 8.07 per cent - 11 year 2017 paper closed at Rs106.60 (7.19 per cent YTM). On Monday, it had closed at Rs106.52 (7.20 per cent YTM). The 10.25-15 year-2021 paper opened at Rs 126.52 (7.34 per cent YTM) and closed at Rs 126.54 (7.34 per cent YTM), up from Monday's Rs 126.505 (7.34 per cent YTM).

Call rates: The call rate closed at 6.75 per cent (7.4).

Repo auction: In the first one-day reverse-repo, RBI received two bids for Rs30 crore and 21 bids for Rs10,235 crore in the repo auction. In the second one-day reverse-repo auction, RBI received three bids for Rs345 crore and 18 bids for Rs5,560 crore in the repo auction.

CBLO: In the CBLO market, there were 333 trades for Rs14,068.75 crore in the rate range of 6.12-6.38 per cent.
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HDFC Chubb launches `Forefront Portfolio' - liability cover for mid-size co.'s
Mumbai: HDFC Chubb General Insurance Company is offering `Forefront Portfolio', a directors and officers' (D&O) liability insurance package for mid-size companies.

The product offers D&O insurance and an option to choose from five other covers against employee theft, entity employment practices, trustee liability, outside directorship liability (for organisations that are not traded publicly and do not have exposures in the US), and Internet liability.

The D&O policy offers coverage of Rs10 crore while in the case of each of the other policies the cover is worth Rs5 crore. Liability insurance currently accounts for 10-12 per cent of the company's business portfolio and raked in premium of around Rs7 crore in 2004-05.
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RBI Basel II norms applied on consolidated basis
Mumbai: The Reserve Bank of India (RBI) wants commercial banks to apply Basel II capital adequacy norms on a consolidated basis to include subsidiaries and overseas operations to get a clear picture of risks, capital charge and reporting requirements.

Addressing a seminar on Basel II, organised by the National Institute of Bank Management, RBI executive director Anand Sinha said Indian banks are assessing Basel II impact at the bank level only and need to shift to an assessment at the consolidated level.

The Basel II norms, which are more stringent than the earlier capital adequacy regulations, now include capital allocation for operational risk. Sinha said it would be applied to a standalone entity as well at the group level. Some banks may have to provide more resources to develop skills and manpower to implement these norms.

He said that most of the banks in India would be able to comply with Basel II norms if they are applied now.

The average capital adequacy ratio of domestic banks was about 12.8 per cent at the end of March 31, 2005. After applying Basel II norms, the overall capital adequacy would decline by about two per cent. Still there would be enough space to adapt to the rigour of Basel II, he said.
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