Rupee slips
Mumbai: The rupee fell to 46.13/14 due to heavy demand for oil from several domestic oil companies. The rupee opened strong at 45.94, and closed at 46.13/14 as compared to 46.05/06, on Friday.

A dealer at a private bank said the rupee is expected to trade range-bound.

Bonds: The bond market was weak ahead of the government securities auction scheduled on Tuesday and in anticipation of a rate hike by the central Bank in the monetary policy. Volumes in the bond market were about Rs450-500 crore on the order matching system.

G-secs: The yield on the 7.59 per cent 2016 10-year benchmark fell to 8.28 per cent or Rs95.4 at close against the previous close of Rs95.88 (8.21 per cent YTM). It had opened at Rs95.7 (8.23 per cent YTM). The 9.39 per cent five-year paper 2011 paper opened Rs106.68 (7.80 per cent YTM) and closed at Rs106.44 (7.80 per cent YTM). The yield touched a low of 7.81 per cent during day trade.

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

Reverse repo: In the first one-day reverse repo auction under LAF, the Reserve Bank of India received and accepted 29 bids amounting to Rs30,630 crore and in the second one-day reverse repo auction, 36 bids for Rs22,255 crore. There were no repo bids.

CBLO: The CBLO market saw 300 trades aggregating to Rs17,920.45 crore in the 5.40 -5.57 per cent range.
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P&S Bank to raise upto Rs 200 cr
New Delhi: Punjab and Sind Bank is floating a lower Tier II issue of Rs100 crore bonds with the green shoe option of retaining the oversubscription upto Rs100 crore. The tenor of the bonds is 117 months with a coupon rate of 9.25 per cent, the bank said in a release.

The issue is open for subscription from July 10 till July 19 and the bond shall be listed at the National Stock Exchange, it said.

With the view to meet the Basel II norms as also for expansion of the assets during the current financial year the bank is raising the funds through the issue of Tier II bonds, it said.

The credit adequacy ratio of the bank as on March 31, stood at 12.83 per cent.

During the 2005-06, the bank declared a net profit of Rs108.32 crore and clocked a deposit growth of 19.43 per cent and 44 per cent increase in advance.
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MMFSL raises FII investment limit to 35 per cent
Mumbai: Mahindra and Mahindra Financial Services has approved the increase in foreign institutional investor limits to 35 per cent from the existing 24 per cent of the paid-up equity share capital of the company.

The 16th annual general meeting took a decision in this regard at its meeting. The AGM also resolved to re-appoint Ramesh Iyer as managing director for 5 years with effect from April 30, it said.
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South Indian Bank declares 18 per cent dividend
Kochi: The South Indian Bank has declared a dividend of 18 per cent for 2005-06. The bank's net profit has grown by 485 per cent to touch Rs50.90 crore.

The bank will soon complete the SIBERTECH project by extending core banking solution to all its branches by the end of this fiscal making it highly customer-friendly by blending tradition with technology.

Senior officials in the bank said the improvement in profitability was mainly driven by the thrust given to NPA recovery and also the reduction in the cost of deposits. The decrease in the percentage of net NPAs to 1.86 per cent (3.81 per cent) was attributed to quality circles involving staff members, one-time settlement and recovery camps.

The bank has already finalised arrangements for managing the exchange company in Dubai, Hadi Express Exchange.
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Sundaram BNP in tie up with South Indian Bank
Chennai: Sundaram BNP Paribas Mutual has tied up with Thrissur-based South Indian Bank (SIB) for distribution of mutual fund products through SIB branch network.

Initially 200 branches would distribute the mutual fund products.

This is the first tie-up with a Kerala-based bank and Sundaram BNP would explore the possibility of similar strategic business tie-up with other banks.
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Centurion Bank Q1 net jumps 160 pc
Mumbai: Centurion Bank of Punjab has registered a 160 per cent growth in net profit for the quarter ended June 30, 2006 at Rs28.7 crore (Rs11.1 crore). However, the year-ago quarter's results are for Centurion Bank alone before the merger with Bank of Punjab.

Total income rose to Rs348.44 crore (Rs122.24 crore). Total expenditure was Rs288.83 crore (Rs103.62 crore). Other income rose to Rs95 crore. Deposits grew by 191 per cent to Rs10,372.1 crore. The bank's growth rate for both assets and deposits was much higher than the industry on a whole.

Total advances grew to Rs7,452.4 crore from Rs2,466 crore. Retail advances accounted for 70 per cent of total advances. The capital adequacy ratio fell to 12.6 per cent from 20.7 per cent in the previous quarter. Net non-performing assets were also low at 1.16 per cent (2.41 per cent). Net interest income grew by 122 per cent to Rs123.2 crore (Rs55.4 crore).

The bank did not securitise any assets during the quarter under review.
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GE Money hikes rates
New Delhi: GE Money, the consumer finance unit of the General Electric Company (GE), on Monday has hiked its benchmark floating reference rate by 0.75 per cent with effect from July 1.

According to the company this increase in the benchmark floating reference rate is on account of changed financial market parameters with respect to borrowing costs.
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