Rupee gains 45 paise
Mumbai: With the domestic stock market rallying, the rupee recovered ground gaining around 45 paise against the dollar. The currency ended the day at 45.90/91.

G-Secs: The 7.59 per cent 10-year - 2016 benchmark paper closed at Rs99.46 (7.67 per cent YTM), higher than Thursday's Rs99.40 (7.67 per cent). The 9.39 per cent - 5 year-2011 paper closed at Rs108.74 (7.29 per cent YTM).

Forwards: The 12-month premia closed at 0.88 per cent (0.85) and the 6 month premia ended at 0.68 per cent (0.66).

Call rates: The inter bank call rates remained unchanged between 5.5 and 5.6 per cent.

Reverse repo: In the first three-day reverse repo auction under LAF, the Reserve Bank of India received and accepted 32 bids amounting to Rs38,385 crore and in the second three-day reverse repo auction, 41 bids for Rs27,785 crore. There were no repo bids.

The CBLO market saw 306 trades aggregating Rs17, 907.55 crore in the 4.85-5.85 per cent range.
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RBI warns banks about non-compliance with money laundering Act
Bangalore: The Reserve Bank of India (RBI) has warned that non-compliance with the Prevention of Money Laundering (PML) Act by banks will be viewed seriously.

"The deadline for the banks to comply with the Act was December 31, 2005. We are procuring reports on the compliance from various banking fraternities. Non-compliance of the Act will be viewed seriously," Anand Sinha, executive director of RBI, said at a seminar on Compliance to Know Your Customer norms and Anti Money Laundering rules here today.

The Act, which came into force in 2005, is aimed at combating channelling of illegally earned money into the banking system. It provides for attachment and seizure of property and records. It also provides for stringent punishment, including rigorous imprisonment of up to 10 years and fine of up to Rs5 lakh.

As per the Act, every banking company, financial institution and intermediary needs to maintain a record of all transactions, the nature and value of which is prescribed in the rules.
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Forex reserves dip another $370mn to $162.5bn
Mumbai: Forex reserves fell second week in a row with the Reserve Bank of India selling dollars to support the declining rupee.

According to statistics from the RBI, the foreign currency reserves declined by $370 million to touch $162.592 billion for the week ended May 26. In the previous week it had fallen by $793 million to touch $162.962 billion.

Foreign currency assets for the week under consideration declined by $370 million to touch $155.509 billion.

Foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of currencies as euro, sterling and yen.

The FII outflow from the domestic equity market for the week was Rs1,333.4 crore according to figures from SEBI.

Gold was unchanged at $6.301 billion and the country's reserve position in the IMF was also same as in the previous week at $782 million for the week under review.
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Centurion Bank makes preferential issue to Chrys Cap subsidiary
Mumbai: Centurion Bank of Punjab is making a preferential issue of seven crore shares at Rs19.25 per share, aggregating Rs134.75 crore, to Johann Ltd, a wholly owned subsidiary of Chrys Capital III Llc.

The bank has received approval from the RBI for this preferential issue.

The bank had allotted 12.76 crore equity shares at a price of Rs19.25 per share on March 21 to funds managed by India Value Fund Advisors Private Ltd, and Citigroup Venture Capital International Growth Partnership Mauritius Ltd earlier.

"This issue will further strengthen the bank's capital position and provide further impetus to its growth," said a release from the bank.
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Prudential ICICI Mutual edges out UTI to lead in AUM
Mumbai/Kolkata: Prudential ICICI Mutual Fund has emerged as the largest mutual fund (MF) for May in terms of funds under management.

Its asset under management (AUM) are pegged at Rs32,151 crore as per figures released by the Association of Mutual Funds of India (AMFI). It displaces the UTI Mutual Fund from the top position, whose funds stand at Rs30551.01 crore.

During the month, Prudential ICICI MF increased its fund holding by 16.9 per cent, adding Rs4647.54 crore to its kitty.

The Reliance Mutual Fund (Rs27,914 crore), the HDFC Mutual Fund (Rs23,649 crore) and the Franklin Templeton Mutual Fund (Rs22,359 crore) were other MFs with high AUM after the top two MFs.
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Canara Bank merges three RRBs in UP
Bangalore: Canara Bank has amalgamated three regional rural banks sponsored by it in Uttar Pradesh, and named the merged entity as the Shreyas Gramin Bank.

A CanBank release said that the merged RRBs were Aligarh Gramin Bank, Etah Gramin Bank and Jamuna Gramin Bank, where the sponsor holds a 35 per cent stake.

The release added that the consolidated RRB would have a total net worth of Rs174 crore and 183 branches, mostly in rural areas. The Shreyas Gramin Bank would have a staff strength of 946.

The deposits of the merged bank would total Rs1,050 crore and advances would be at Rs646 crore with a credit-deposit ratio of 62 per cent.

The release said that the amalgamation would result in economies of scale in operation, improved reach of the bank, help in investing in appropriate technology to promote rural banking and ultimately would bring better facilities to rural areas.
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