Rupee tracks global currencies
Mumbai: The rupee rose to 46.05 following the 25 basis point hike in interest rate at the Federal Open Market Committee (FOMC) meet on Friday. The domestic currency opened at Rs46.16/17 and closed at Rs46.05. Dealers said that the dollar declined after the rate hike in the FOMC meet. Exporters were also selling dollars, they said.

Call rates: Call rates ranged between 5.75 and 5.85 per cent.

Reverse repo: In the first three-day reverse repo auction under LAF, the RBI received and accepted 18 bids amounting to Rs17,805 crore and in the second three-day reverse repo auction, 41 bids for Rs24,760 crore. There were no repo bids.

CBLO: The CBLO market saw 330 trades aggregating to Rs18,423.05 crore in the 5.12-5.85 per cent range.
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Current account surplus of $1.8bn in Q4
Chennai: After recording deficits in the first three quarters of 2005-06, India has achieved a current account surplus of $1.8 billion in the fourth quarter, due mainly to a 40.7-per cent pick up in software exports and 16.9 per cent rise in private transfers. Against this in the fourth quarter of the previous year, there was a current account surplus of $527 million, according to data released by the Reserve Bank of India.

Exports also grew more at 22.9 per cent, compared with 20.7 per cent in the fourth quarter of 2004-05.

Non-oil imports declined by 4.6 per cent during the quarter, compared with a growth of 59.7 per cent in the corresponding period of the previous year.

Oil exports, however, rose 48.3 per cent against 43.6 per cent previously.

The overall growth in imports was only 20.1 per cent against 59.1 per cent previously.

Due to favourable capital inflows, balance of payments for the quarter was a favourable $13.22 billion against $12.63 billion previously.

But due to the deficits in the first three quarters, the year 2005-06 saw a current account deficit of $10.61 billion, higher than the deficit of $5.4 billion in 2004-05. Net capital inflows were also lower in 2005-06 at $24.69 billion against $31.02 billion in the previous year, although the FDI component increased sharply to $5.7 billion against $3.2 billion.
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Forex reserves decline by over $1bn
Mumbai: According to the Reserve Bank of India's Weekly Statistical Supplement, foreign exchange reserves have decreased by $1.073 billion to $161.96 billion, against $163.03 billion in the previous week.

The foreign currency assets for the week have declined by $1.07 billion to touch $154.177 billion. Foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of currencies such as euro, sterling and yen.

Dealers said the dollar has strengthened against all major currencies for the week under consideration and there were speculations in the market over the interest rate hike in the Federal Open Market Committee meet, impacting the dollar.

Gold reserves remained unchanged at $7.010 billion.
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Thomas Cook to merge with LKP Forex in no-cash deal
Mumbai: Thomas Cook (India) (TCIL) and LKP Forex, a 100-per cent subsidiary of the BSE-listed LKP Merchant Financing, will merge in a no-cash deal. The merged entity will not have any LKP name tag.

Thomas Cook said the LKP group would get a consideration package consisting of equity shares and preference shares. According to the company foreign exchange is an important part of its business and the proposed merger is part of its growth plans in India.

TCIL, which is celebrating its 125 years of operations in India, has embarked on a major growth trajectory, drawing up plans to grow in all its business segments in the country by using both organic and inorganic growth drivers.

LKP had sought representations on the board of the merged entity and has been offered one place on the new board. Sources close to the development said it has asked for 3 berths on the proposed entity's board.

LKP Forex has 85 branches in 54 cities with 630 on its payrolls and 220 franchised outlets for money changing, travel insurance and money transfer services all over the country. Thomas Cook currently has 65 branches in 28 Indian cities providing similar foreign exchange related services.

Merchant banking sources said that LKP was hoping for a compensation range worth between Rs350 crore and R 400 crore.
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SBI to decide on rate revision on July 25
Mumbai: State Bank of India (SBI), will wait till the July 25 monetary policy review by the Reserve Bank of India (RBI) before revising its lending rates. SBI and all the other government-owned banks had raised its prime lending rates with effect from May 1, 2006 by an identical 25 basis points.

SBI witnessed a flat growth in advances during April-May 2006 and expects credit growth in FY07 to be around 25 per cent which is above RBI's forecast of 20 per cent. SBI has seen a growth in retail deposits during April-May 2006.
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Union Bank increases rates for retail traders
Mumbai: Union Bank of India has hiked its interest rate on loans to retail traders by 25-50 basis points with effect from July 1, 2006 and will decide on home loan rates in a week's time.

The bank's PLR is currently 11.25 per cent. Union Bank's interest rates on working capital for retail traders would increase from 9.5-10.5 per cent and on term loans from 10-11 per cent.
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SBI offers e-ticketing facility
Mumbai: State Bank of India has tied up with Kingfisher Airlines to offer e-ticketing facility through the group's 5,579 ATMs, covering 1907 centres. SBI cardholders can book tickets of Kingfisher Airlines in Bangalore, Delhi and Mumbai. The facility will be rolled out to the rest of the country later, said a press release from the bank. Kingfisher Airlines has offered 12.5 per cent discount to the SBI cardholders making payment through the ATMs, up to July 31, the release said.
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