Rupee firms up
Mumbai: The rupee gained marginally against the dollar on Tuesday ending at 44.22, four paise higher than Monday's close of 44.26.

Forwards: The forward premium gained by about 4-5 paise, with the six-month closing at 2.30 per cent (1.9 per cent) and the 12-month closing at 1.76 per cent (1.52 per cent).

G-Secs: The 8.07 per cent-11 year-2017 paper ended at Rs105. 27 (7.36 per cent YTM), lower than Monday's Rs105.38 (7.34 per cent YTM). The 7.40 per cent-29 year-2035 closed at Rs97.48 (7.61 per cent).

Call rate: The inter bank rates closed at 7-7.10 per cent.

Repo: In the first one-day auction, the RBI did not get any bids in the reverse repo and received 36 bids for Rs18,695 crore in the repo. In the second auction, the RBI received and accepted two bids for Rs130 crore in reverse repo and 14 bids for Rs5,450 crore in the repo auction.

CBLO market: There were 296 trades for Rs21,003.05 crore in the 6.47-6.55 per cent.
Back to News Review index page  

IDBI Capital launches online portal
Chennai: Financial services provider, IDBI Capital Market Services, has launched an online investment portal 'idbipaisabuilder.in' to provide information to retail investors on the companies in which they wish to invest.

Ketan Trivedi, vice-president, IDBI Capital said the portal had been designed to empower the common investor with information and analysis tools to take charge of their investment needs.
Back to News Review index page  

IOB set to acquire Bharat Overseas Bank
Chennai: PSU bank Indian Overseas Bank (IOB) plans to acquire 70 per cent in Bharat Overseas Bank (BhOB) for Rs170 crore and at a price of Rs155 per share. The stake, currently, is held by six other banks.

At present IOB is the single largest stakeholder with 30 per cent interest in BhOB, a private bank also based in Chennai.

The other shareholders are Bank of Rajasthan (16 per cent), Vysya Bank (14.66 per cent), Federal Bank (10.67 per cent), Karur Vysya Bank and South Indian Bank (10 per cent each) and Karnataka Bank (8 per cent).

Bank of Rajasthan will get the highest amount at about Rs39 crore for its 16 per cent stake, followed by Vysya Bank (Rs35 crore), Federal Bank (Rs26 crore), Karur Vysya Bank and South Indian Bank (Rs24 crore each) and Karnataka Bank (Rs21 crore).

BHoB has a network of over 100 branches and the only Indian bank to have a branch in Thailand.
Back to News Review index page  

Allahabad Bank led non-life consortium plans Rs.200-cr seed capital
Kolkata: The Allahabad Bank led consortium plans to enter non-life insurance business with an initial capital base of Rs200 crore instead of Rs100 crore as stipulated by the Insurance Regulatory and Development Authority (IRDA).

Besides Allahabad Bank, other members of the consortium are Indian Overseas Bank (IOB), private sector Karnataka Bank and Dabur.

Allahabad Bank and IOB would hold less than 50 per cent in the consortium. According to sources, the Indian partners would hold 74 per cent of the total equity base, while the foreign partner would provide the remaining 26 per cent in the venture.
Back to News Review index page  

Birla Sun Life, NIC tie up to offer insurance product for rural areas
New Delhi: Birla Sun Life Insurance and National Insurance Company have tied up to launch a micro insurance product at a price suitable for the rural poor.

The move comes after regulator IRDA notified micro insurance regulations in November 2005 that allows life and general insurers to tie up for offering a combined policy to cover risks of lives, crop, huts, livestocks and tools. The IRDA (micro-insurance) Regulations 2005 allows insurers to issue policies with a maximum cover of Rs50,000 for general and life insurance. BSLI has also signed an agreement with NIC to market each other products.

Birla Sun Life has 15 products in its portfolio and 85 per cent of its business is from unit-linked products. The company has sold about 1.5 lakh policies providing cover to over one million lives.
Back to News Review index page  

DCB plans IPO
Mumbai: Development Credit Bank (DCB) is planning to raise Rs300 crore by tapping the capital market with an initial public offer (IPO).

The company recently completed a private equity placement of Rs52 crore to HDFC, Khattar Holdings, and Amtel Finance. The investors have picked up a 15 per cent stake in DCB through preferential share issue and would step in as pure financial investors.

The funds will be utilised towards improving provision covers on NPAs (non performing assets) and increasing the balance sheet size.

The holding of the Aga Khan Fund for Economic Developments (AKFED), the principal promoters in the bank would come down to 58 per cent from 69 per cent after the placement.
Back to News Review index page