Rupee declines
Mumbai: The rupee declined against the dollar during the day. The domestic currency opened at 44.84/85 and ended at 44.90, lower than Tuesday's close at 44.990.

Forwards: In the forward premia market, the six month closed at 1.45 per cent and the 12 month ended at 1.40 per cent.

Bonds: The bond market was bearish due to the hardening of the US yields and global crude oil prices. Dealers said that with the market stabilisation scheme being reintroduced, the liquidity in the system would once again be sucked out.

G-secs: The 7.40 per cent - 6 year-2012 paper opened at Rs101 (7.21 per cent) and closed at Rs100.99 (7.19 per cent YTM). The benchmark 7.59 per cent - 10 year-2016 paper opened at Rs100.70 (7.49 per cent YTM) and closed at Rs100.66 (7.49 per cent YTM).

Call rate: The call rate closed unchanged at 5.5-5.6 per cent.

Reverse repo: In the first one-day reverse repo auction under LAF, RBI received and accepted 32 bids amounting to Rs27,865 crore and 39 bids for Rs42,855 crore in the second auction. There were no repo bids.

CBLO: The CBLO market saw 305 trades, aggregating to Rs18,724.65 crore in the rate range of 5.14-5.45 per cent.
Back to News Review index page  

State Bank of Mysore may go for stock split
Bangalore: State Bank of Mysore is proposing to augment its capital this year by Rs500 crore and also go for a stock split. The SBM managing director, Y. Vijayanand, said: "We have proposed raising the funds through a combination of equity and tier two (subordinated debt) after amendments to the State of India Act is passed."

The bank proposes to raise its equity either through a rights issue or through the initial public offering route, he added. The bank reported a net profit of Rs216.71 crore for financial year ended March 2006, up 5.07 per cent over the previous year. Net profit was Rs206.25 crore. The net profit increase was despite the drop in operating profit during the period to Rs437.86 crore from Rs451.66 crore. The drop in the operating profit he said was mainly on account of a fall in treasury profits. Treasury profits fell to Rs90.57 crore in FY06 from Rs151 crore during the previous year.

SBM reported a gross expenditure of Rs1,255.46 crore (Rs1,102.12 crore). The increase was contributed largely by a rise in interest expenditure in FY06 to Rs735.09 crore (Rs623.03 crore). Operating expenditure also went up to Rs520.37 crore (Rs479.09 crore).

In FY06, the bank also managed to reduce its gross non-performing assets to 3.30 per cent of its advances to 4.56 per cent on the back of good recoveries. It managed to recover Rs75 crore.
Back to News Review index page  

SBBJ net declines
New Delhi: The State Bank of Bikaner and Jaipur has reported a net profit of Rs145.03 crore for the year ended March 31, 2006, against a net profit of Rs205.65 crore recorded in the previous year.

A statement issued by the bank said that the lower net profit was on account of reduction in profit from sale of investments, reduction in government commission, increase in staff remuneration and higher provision for standard assets. The operating profit for the year 2005-06 stood at Rs592.37 crore (Rs729.64 crore). The bank declared a dividend of 65 per cent (Rs65 per share).
Back to News Review index page