SBI ups home loan rates by 25-75 bps
Mumbai: The State Bank of India has hiked interest rates on its home loans by 0.25 to 0.75 percentage points, across the floating and fixed interest rate category. The bank announced that the rate hike would be effective from March 1. (See: Home loans to cost more; SBI too hikes rates)

After the Reserve Bank of India increased reverse repo and repo rates by 0.25 percentage points in its mid-term review of the monetary policy last month, leading players in the home loans segment like HDFC, LIC Housing Finance and ICICI Bank raised interest rates by 0.5 percentage points earlier this month. IDBI Ltd raised retail lending rates by 0.25 percentage points.

ICICI Bank also raised its prime lending rate by 0.5 percentage points to 11.75 per cent.
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UBI FPO oversubscribed 27.42 times
Mumbai: Union Bank of India's follow-on public issue (FPO) was oversubscribed by 27.42 times on the closing day of the issue according to sources in the bank.

The bank entered the capital market with a follow-on public issue of 4.5 crore equity shares to augment capital base for implementation of Basel II norms and future growth in assets.
The issue constitutes 8.91 per cent of the total post paid up equity capital of the bank. Post-issue, Government of India's shareholding in the bank comes down to 55.43 per cent from the present 60.85 per cent, the sources said.

Of the total 4.5 crore shares, 45 lakh had been reserved for employees and the balance allotted to the public. A total of 35 per cent had been reserved for allotment to retail investors and 15 per cent for non-institutional investors. Of the net issue to public, 50 per cent had been reserved for allotment to qualified institutional buyers.
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Rupee lower
Mumbai: The rupee ended four paise lower from the previous close against the US dollar on Tuesday. Other Asian currencies were also slightly weak against the dollar, especially the yen. The rupee opened at 44.38 and ended the day at 44.4250 against Monday's level of 44.37.

Forwards: The six-month premium closed at 2.5 per cent (2.45 per cent) and the one-year closed at 1.95 per cent (1.92 per cent).

Bonds: Bonds opened firm, but lost the gains made in the first session due to fears of liquidity tightness and the statements made by the finance minister about inflation still being a big concern.

Bond prices ended at the same level as Monday though the Rs5,000 crore auction was cancelled.

G-Secs: The 8.07 per cent 11-year 2017 paper opened at Rs105.6 (7.31 per cent YTM), touched a high of Rs105.65, a low of Rs105.39 and ended at Rs105.44 (7.33 per cent YTM) against the previous close of Rs105.39 (7.34 per cent YTM). The 7.4 per cent 29-year 2035 paper opened at Rs97.95 (7.57 per cent YTM) and closed at Rs97.66 (7.59 per cent YTM) against the earlier close of Rs97.61 (7.6 per cent YTM).

Call rates: Call rates stood between 7-7.10 per cent (7.15-7 per cent).

Repo auction: In the first one-day auction, the RBI did not receive any bids in the repo auction, but received and accepted 29 bids for Rs18,320 crore in reverse repo. In the second auction, it received and accepted two bids for Rs30 crore and six bids for Rs1,780 crore.

CBLO: In the CBLO market, there were 327 trades for Rs21,399.3 crore in the 6.43-6.55 per cent.
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Reliance Info in pact with GE Money
New Delhi: Reliance Infocomm and GE Money have announced a multi-year agreement wherein the former would provide network services for the financial services company.

Reliance Infocomm will initially network 122 GE locations on its pan-India optical fibre backbone that would enable financial services company operate it branches online across the country, a joint statement said here today.
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BoI introduces debit cum ATM card
Mumbai: Bank of India (BoI) has launched its international debit-cum-ATM card in association with MasterCard International.

The bank plans to issue a million of such cards in the next four to five years. The 'Bank of India Global Debit MasterCard Card,' will be accepted at over 20 million merchant establishments as well as one million ATMs worldwide. Cardholders can withdraw Rs15,000 per day on ATMs and can make purchases of up to Rs25,000 per day on the card.
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