Rupee declines
Mumbai: The rupee weakened against the dollar due to rising prices of crude oil. The domestic currency opened at 46.45 and touched an intra-day low of 46.50. It then recovered to finally close at 45.37/38, lower than Thursday's close at 46.33.

Forwards: In the forward premia market, the 12-month closed at 1.13 per cent (1.16) and the 6 month ended at 0.98 per cent (1.02).

Bonds: Prices initially fell on account of the surge in global oil prices but recovered to end 5 paise below Thursday's close.
The 7.59 per cent, 10-year, 2016-benchmark paper opened at Rs94.82 (8.37 per cent YTM), down from Thursday's close at Rs95.05 (8.34 per cent YTM). It finally closed at 95.05 (8.34 per cent YTM). The 7.37 per cent, 8-year, 2014-paper opened at Rs95 (8.25 per cent ) and closed at Rs95.17 (8.22 per cent YTM), lower than the previous close at Rs95.23 (8.21 per cent YTM).

Call rates: The call rates closed at 5.8-5.85 per cent (5.75-85).

Reverse repo: In the first three-day reverse repo auction under LAF, the Reserve Bank of India received and accepted 28 bids amounting to Rs25,500 crore and in the second three-day reverse repo auction, 23 bids for Rs14,185 crore. There were no repo bids.

CBLO: The CBLO market saw 281 trades aggregating to Rs16,923.05 crore in the 5.60-5.83 per cent range.
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HDFC Bank Q1 net rises 30 per cent
Mumbai: HDFC Bank's net profit rose 30.4 per cent to touch Rs239.3 crore for the first quarter ended June, 30, 2006, against Rs183.53 crore in the same quarter last year.

The rise in profit was mainly on account of strong growth in net interest income (NII) and high net interest margin (NIM) despite increasing interest rates.

Total income was Rs1,855.08 crore (Rs1,157.68 crore). NII increased by 56.1 per cent to Rs817.63 crore (Rs523.69 crore). Other income increased to Rs350.79 crore (Rs263.55 crore).

Income from fees and commissions was Rs290.6 crore (Rs215.2 crore) and from foreign exchange and derivatives it was Rs55.8 crore (Rs23.8 crore). However, the bank recorded a loss of Rs2.3 crore on sale investments against a profit of Rs23.4 crore last year.

Total expense increased to Rs1,239.38 crore (Rs728.45 crore).
The bank's capital adequacy ratio was 11.7 per cent (11.9 per cent).

The ratio of net non-performing assets to net assets was 0.4 per cent.

Provisions increased to Rs263.87 crore (Rs165.85 crore). Bank sources said higher provisioning was partly because of amortization of premium because of the `Held to Maturity' portfolio and partly because of RBI guidelines.

Total deposits increased by 58.1 per cent to touch Rs60,630 crore (Rs38,354 crore). Total advances grew by 40.1 per cent to Rs45,764 crore (Rs32,665 crore).
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Forex reserves up $348m
Mumbai: The country's foreign exchange reserves rose for the second consecutive week. According Reserve Bank of India figures for the week ended July 7, it increased by a modest $348 million to touch $163.260 billion due to good inflows into the equity market and a steady euro.

In the previous week, forex reserves increased by $952 million to touch $162.912 billion. As per RBI figures, foreign currency assets increased by $347 million to touch $156.315 billion. Foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of currencies such as euro, sterling and yen. The total FII inflow into the domestic equity market was $133.2 million.
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