Forex reserves rise for fifth consecutive week
Mumbai: According to the Reserve Bank of India's Weekly Statistical Supplement, the foreign exchange reserves of India increased for the fifth consecutive week. For the week ended February 24, forex reserves increased by $350 million to touch $141.590 billion, from $141.240 billion the previous week. The reserves gained by $811 million for the week ended February 17.

Foreign currency assets increased by $349 million to touch $135.15 billion in the week concerned. Foreign currency assets expressed in dollar terms include the effect of appreciation or depreciation of non-US currencies such as euro, sterling and yen.

The FII inflows during the week stood at $651.3 million. Dealers also said that yen and the euro had gained by more than 100 basis points during the week under consideration. The revaluation effect could therefore also contributed to the rise in reserves. Gold and SDRs were unchanged at $5.680 billion and $3 million, respectively.
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Centurion Bank launches credit card
New Delhi: Centurion Bank of Punjab (CBoP) has entered the credit card market with the launch of its first credit card 'Miracle' in association with a leading non-government organisation, The Art of Living Foundation (AOLF).

The bank targets five lakh customers for its card and wants to make a contribution of Rs50 crore to Sri Sri Ravi Shankar's AOLF. The card can be availed at a concession of one-time contribution of Rs50. This, together with a matching contribution from the bank, will help poor children get education at various schools run by AOLF, he said.
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Yes Bank raises Rs100 crore tier II capital from Rabobank
New Delhi: Yes Bank has raised funds to the tune of Rs100 crore through private placement of bonds with Rabobank International. The latter holds a 19.5 per cent equity stake in the new generation bank.

The bank is on an expansion mode and is likely to increase its branch network from 7 to 15 by this month-end and to 30 in three months. Yes Bank, which started operations in 2004, has a balance sheet of Rs3,700 crore.

The bank is focussing on lending to corporates, SMEs and plans to invest further in retail sector.

Promoters Rana Kapoor and his family hold 40 per cent in the Mumbai-based bank, while foreigners including FIIs and NRIs hold about 48.5 per cent.

Netherland-based Rabobank International holds 19.5 per cent in the bank, and three foreign equity capital investors hold about 18.5 per cent.
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Insurance sector in need of FDI: Lahiri
New Delhi: The Government said increase in FDI limit is a solution to the capital requirement in insurance sector and there should be a debate on level playing field for both Indian and US banks in opening branches in their respective countries.

The government's chief economic advisor Ashok Lahiri said at a CII Indo-US Round Table on Financial Sector here that there is a need to look at FDI (in insurance) and how to liberalise the sector. Lahiri said the insurance sector needed to grow faster to achieve higher penetration and to achieve that higher capital infusion is required.

He said thirteen private insurers have infused Rs4,300 crore capital in 2004-05. Currently, 26 per cent FDI is allowed in insurance while foreign insurers are demanding to hike it to 49 per cent.
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Canara Bank ups deposit rates
Bangalore: Public sector Canara Bank has hiked deposit rates by 25 to 50 basis points across all maturities.

The bank said that the interest on 15 to 45 day deposits now stood at 4.75 per cent up from 4.5 per cent. For five-year deposits, the rates offered are 7 per cent up from 6.5 per cent. The hike in deposit rates follows the sharp rise in credit off-take. The rate hikes take effect from March 6 onwards, the bank said.
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