Rupee higher
Mumbai: The rupee opened the week on a positive note as it gained slightly against the US dollar. The rupee opened at 45.94 and touched a high of 45.87, before ending trade at 45.92 against Friday's close of 45.95/96.

Forwards: The one-year premium on the rupee increased by about 25 basis points said dealers. The six-month premium closed at 1.06 per cent (0.97 per cent) and the 12-month ended at 1.2 (1.12 per cent). All major overseas currencies were weak against the dollar, with the euro seeing constant selling.

Bonds: Sentiment in the bond market was bearish and traded volumes were low. Prices opened 10 paise lower than Friday's closing and there was little buying interest. The anticipation of the Rs5,000-crore g-sec auction scheduled between June 16 and 24 also prevented traders were taking positions.

G-secs: The 9.39 per cent-5 year-2011 paper opened at Rs108.13 (7.43 per cent YTM) and closed at Rs108.10 (7.43 per cent YTM), lower than Friday's at Rs108.16 (7.42 per cent YTM). The 7.59 per cent - 10 year-2016 benchmark paper opened at Rs98.55 (7.80 per cent YTM) and closed at Rs98.56 (7.80 per cent YTM), down from Friday's Rs98.63 (7.79 per cent YTM).

Call rates: Call rates remained unchanged between 5.75 and 5.85 per cent.

Reverse repo: In the first one-day reverse repo auction under Liquidity Adjustment Facility, Reserve Bank of India received and accepted 24 bids amounting to Rs30,355 crore and in the second one-day reverse repo auction, 33 bids for Rs18,880 crore. There were no repo bids.

CBLO: The CBLO market saw 283 trades aggregating to Rs16,970.35 crore in the 5.41-5.75 per cent range.
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Rs5-lakh fine imposed on Canara Bank
Mumbai: The Reserve Bank of India has slapped a fine of Rs5 lakh on Canara Bank for violating CRR and SLR norms. RBI also issued a show-cause notice to the bank before imposing the penalty.

According to RBI, "The bank had been following an estimation method for reckoning the external liabilities under inter-branch account for computation of its demand and time liabilities/net demand and time liabilities for the purpose of maintaining Cash Reserve Ratio and Statutory Liquidity Ratio." The bank had revised and introduced a proper system of calculating liabilities under inter-branch account only in September 2005, the release said.

Earlier on May 30, RBI imposed a Rs5 lakh fine on Bank of Baroda for similar case of violation of CRR and SLR norms.
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ICICI Bank consolidated net at Rs2,420-cr
Mumbai: ICICI Bank has registered a consolidated net profit of Rs2,420 crore in FY06, as per Indian GAAP data. The reconciliation statement between Indian GAAP and US GAAP shows a net profit (PAT) of Rs2,004 crore under US GAAP for the same period as compared to Rs853 crore in the previous year, an official release issued by ICICI Bank said today.
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Bank employees to decide on nationwide stir
Chennai: The All Indian Bank Employees Association will take a decision on holding a nationwide bank strike at its General Council meeting to be held here on June 13 and 14.

About five lakh bank employees will participate in the strike, if the general council decides to hold one- on various demands, AIBEA general secretary C H Venkatachalam told the press.

The bank employees are demanding withdrawal of the proposed 74 per cent FDI in the banking sector, making loan defaults a criminal offence, non-privatisation of public sector banks, outsourcing of banking services, increasing recruitment, opening of more braches of the public sector banks in 'un-banked' areas and providing more loans to poor people.
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StanChart home loan rates up by 50 bps
Mumbai: Standard Chartered Bank has hiked its home loan rate by 50 basis points with immediate effect. The new rate on floating loan is 9.5 per cent and on fixed loan it is 10.5 per cent, said a spokesperson of the bank. Home loans form about 50 per cent of the bank's retail portfolio and the average tenor of the loans is 12-15 years.
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Dhanalakshmi Bank looks at 40 pc growth
Mumbai: Dhanalakshmi Bank has set a target of achieving over 40 per cent growth in the current fiscal and expects its total business to touch Rs6,000 crore from Rs4,223 crore in the last fiscal. The bank also plans to increase net profit from Rs9.51 crore to Rs22 crore this fiscal. The deposits and the advances are estimated to be Rs3,500 crore and Rs2,500 crore respectively, according to bank officials.

The bank plans to concentrate on retail, priority and small and medium enterprises sector and would open 32 new branches during the year and will concentrate in Delhi and Rajasthan in the north.

It plans to reduce the percentage of net NPAs to total assets from 2.44 per cent to 1.75 per cent.
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Andhra Bank begins drive to increase deposits
Mumbai: Andhra Bank's Mumbai zone is organising a month-long deposit mobilisation campaign called `AB Deposit Utsav 2006' to increase its retail business. As part of the campaign the bank will mobilise low cost deposits and target customers for ATM and debit cards.

The campaign would run from June 12 to July 11. Andhra Bank's Mumbai zone comprises 61 branches and six extension counters in Maharashtra, Gujarat, Madhya Pradesh and Goa. During the campaign, the bank will also conduct customers' meets and road shows in the zone to popularise their products and to increase the retail business, a release said.
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