Rupee range-bound — securities dip
Mumbai: The rupee was range-bound against the US dollar on Thursday but gained about six paise from the previous close, ending trade at 44.3550.

Forwards market: The six-month premium closed at 2.25 per cent (1.92 per cent) and the one-year premium closed at 1.7 per cent (1.4 per cent).

G-Secs: The 8.07-11 year-2017 paper closed at Rs106.42 (7.21 per cent YTM), lower than Wednesday's Rs106.48 (7.21 per cent YTM). The 7.55-4 year-2010 paper ended at Rs103.50 (6.6 per cent YTM).

Call rates: The inter bank rates closed at 6.5 per cent (6.4 per cent).

Reverse-repo: In the first one-day reverse repo auction, RBI received one bid for Rs10 crore and 22 bids for Rs9,985 crore. In the second one-day reverse-repo auction, the RBI received one bid for Rs210 crore and 18 bids for Rs4,440 crore.

CBLO market: There were 334 trades for Rs14,433.35 crore in the rate range of 6.15-6.4 per cent.
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Kotak Mahindra Bank reports 71 per cent rise in Q3 net
Mumbai: Kotak Mahindra Bank has reported a net profit of Rs32.64 crore for the quarter ended December 2005, up 71 per cent from Rs19.1 crore in the corresponding period.

Dipak Gupta, executive director, said that the bank has experienced all-round growth, with SME lending, retail lending, treasury income, and income from distribution all reporting growth.

Total income for the quarter was Rs230.92 crore (Rs143.31 crore). Net interest income was Rs91.3 crore (Rs57.5 crore). Other income increased to Rs48.72 crore (Rs30.35 crore).
Total expenditure increased to Rs185.29 crore (Rs114.43 crore). The capital adequacy ratio was 11.05 per cent (13.73 per cent). The proportion of net NPAs to total assets was 0.4 per cent and that of gross NPAs was 0.8 per cent.
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SBT net up marginally for nine months period
Thiruvananthapuram: State Bank of Travancore (SBT) has registered a net profit of Rs163.50 crore during the first nine months of 2005-06 as compared with Rs161.21 crore in the corresponding period last year.

The operating profit during the period stood at Rs425.56 crore, while the total business of the bank reached a level of Rs43,326 crore, according to a statement from the bank.

The net interest income went up by 5.05 per cent to reach Rs712.27 crore as against Rs677.99 crore during the same period last year.
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ICICI Bank exercises green-shoe option
Mumbai: ICICI Bank has exercised in full the green-shoe option of Rs750 crore, from its domestic public issue of equity shares in December 2005. The bank has exercised its option on completion of the price stabilisation period, according to a press release from the bank.

The size of the issue was Rs5,750 crore, plus the green-shoe option of Rs750 crore.
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BoB, Andhra Bank IPOs oversubscribed
Mumbai: The follow-on public issue of Bank of Baroda (BoB) has been oversubscribed 3.24 times and that of Andhra Bank's 2.64 times, according to information available on the National Stock Exchange Web site.

BoB's issue of 7.1 crore shares received a total of 22.99 crore bids, while the 8.5-crore issue of Andhra Bank received 22.45 crore bids.

The Qualified Institutional Buyers (QIB) portion of BoB was subscribed 6.83 times, the retail portion 0.29 times and the non-institutional investors portion 0.5 times. The price band was fixed between Rs210 and Rs230, with a minimum bid size of 30 shares.

In the case of Andhra Bank, the QIB portion was subscribed 5.14 times, the retail portion 0.64 times and the non-institutional investors portion 0.92 times. The bank had fixed the price band at Rs82-90, with a minimum bid size of 75 shares.
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RBI to review bank audits post IPO scam
Mumbai: The Reserve Bank of India (RBI) is taking a fresh look at the audit practices of commercial banks in the wake of the recent IPO allotment scam.

Towards this end, the RBI will form a group comprising members from the Institute of Chartered Accountants of India (ICAI) to sort out issues relating to concurrent audit of banks, besides issues relating to standardisation of audit formats and empanelment of auditors, according to the RBI governor YV Reddy.

The group will also address the implementation issues on certain accounting standards, the central bank governor said at a seminar on the role of auditors in economic growth.

According to the existing standards, laid down by the RBI jointly with ICAI, banks are required to conduct concurrent audits of their daily operations at the branch level. The audits are conducted by independent auditors on a daily basis to ensure the compliance of various accounting norms.

A recent RBI notification also stipulates that the compliance of Know Your Client guidelines also comes under the purview of concurrent auditors. Auditors are expected to immediately alert the bank official of any oversight, lapse or violation of norms.
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