Rupee falls
Mumbai: The rupee depreciated against the dollar in a falling stock market. On Tuesday, the rupee opened at 45.97/98 and ended trade at 46.03/04 against the earlier close of 45.92.

Forwards: In the forward premia market the six-month premium was at 0.9 per cent (1.06 per cent) and the one-year premium was at 1.09 per cent (1.2 per cent).

Bonds: The bond market on Tuesday was bearish due to lack of trading interest and fears over rising inflation. Total volumes stood at less than Rs1,000 crore.

G-secs: The 9.39 per cent five-year 2011 paper opened and closed at Rs108.1 (7.43 per cent), unchanged from the previous close. The 7.59 per cent 10-year 2016 benchmark paper opened at Rs98.5 (7.80 per cent YTM) and closed at Rs98.49 (7.81 per cent YTM), down from Friday's level of Rs98.55 (7.80 per cent YTM).

Call rates: Call rates were steady at 5.75 to 5.8 per cent, while liquidity was at Rs48, 270 crore against Rs49, 235 crore.

Reverse repo: In the first one-day reverse repo auction under Liquidity Adjustment Facility, the RBI received and accepted 29 bids amounting to Rs32,655 crore in the first repo auction and 31 bids amounting to Rs15,615 crore in the second auction.

CBLO: The CBLO market saw 271 trades aggregating to Rs16,299.15 crore in the 5.52-5.74 per cent rage.
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Andhra Bank ties up with HMT Tractors: targets business growth of 19.4 pc
Hyderabad: Andhra Bank has tied up with HMT Tractors to offer finance for tractor purchases. The Andhra Bank chairman and managing director, K. Ramakrishnan, said the bank has set a target of financing 3,000 units of tractors during the current fiscal. Under the tie up with HMT, the bank has set a target of financing 1,200 units out of 1,500 units of sale aimed by HMT in Andhra Pradesh alone.

Andhra Bank is targeting to increase its business volumes to Rs67,350 crore during the current fiscal as against Rs56,406 crore achieved for the fiscal ended March 2006 representing a growth of 19.4 per cent.

The bank's advances to agriculture stood at Rs4,073.28 crore during the last fiscal, constituting 18.38 per cent of net bank credit. Disbursements to agriculture amounted to Rs2,274 crore, an increase of 35 per cent over the previous fiscal. The bank views increasing volumes under agricultural credit as a business opportunity in view of the low non-performing assets under the sector.
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RBI move to outsource jobs gets flak
Kolkata: Efforts made by the Reserve Bank of India move to outsource jobs and functions to private parties has been criticised by certain economists who say this would spell disaster for the national economy.

The critics include Amiya Bagchi director of Institute of Development Studies, Kolkata and Ratan Khasnobis of the Calcutta University.

The former said against the backdrop of impending capital account convertibility, which the government has asked RBI to prepare a roadmap, he said India might emerge as a favourite ground for illegal money laundering. He also said management of foreign exchange operations would no longer remain a major function of RBI.

The latter said the supervisory role of RBI would gradually become weak and the Currency Board would replace RBI as the supplier of legal tender.
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IndusInd Bank posts Q4 loss
Mumbai: IndusInd Bank has posted a net loss of Rs62.4 crore against a profit of Rs62.91 crore, in the fourth quarter ended March 2005-06, due to higher provisioning and increase in operating expenses on account of network and staff expansion. The bank had higher provisioning for 2005-06 at Rs102.45 crore against Rs49.15 crore last year.

The total income of the bank also dropped to Rs360.32 crore for the fourth quarter (Rs373.03 crore). Total expenditure was Rs320.27 crore (Rs260.97 crore).

Net interest income for fourth quarter was low at Rs78.76 crore (Rs123.15 crore). Capital Adequacy Ratio was 10.54 per cent (11.62 per cent). The percentage of net non-performing assets to total assets was 2.09 per cent (2.71 per cent).

The total deposits during the year stood at Rs15,006 crore (Rs13,114.28 crore) and advances were at Rs9,310.46 crore (Rs8,999.75 crore).
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