Re
recovers
Mumbai: The rupee recovered its losses against the dollar
along with the strengthening of other major currencies.
The
US Fed Governor's signal to remain soft on interest rates
pushed the dollar down against all major currencies. The
euro and the pound gained around 300 basis points from
Wednesday's low. The rupee opened at 46.81/83, up from
Wednesday's close at 46.99/47. Dollar selling by exporters
towards the end of the session caused the rupee to close
firm at 46.78/79. The rise in the domestic stock market
also improved sentiment in the forex market.
Forwards:
In the forward premia market, the 6-month closed at
0.94 (1.03) and the 12-month ended at 1.1 per cent (1.18).
Call
rates: Call rates remained unchanged between 5.75
and 5.85 per cent. In the first one-day reverse repo auction
under LAF, the RBI received and accepted 29 bids amounting
to Rs25,465 crore and in the second one-day reverse repo
auction, 38 bids for Rs21,750 crore. There were no repo
bids.
CBLO:
The CBLO market saw 348 trades aggregating to Rs21,530.15
crore in the 5.40 - 5.75 per cent range.
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Union
Bank net down 30 pc
Mumbai: Union Bank of India's net profit fell by
30 per cent to Rs 166.81 crore for the quarter ended June
30, against Rs240.39 crore registered in the previous
quarter.
"The
net profit is down because of higher provisioning, which
has increased by 144 per cent," M.V. Nair, CMD of
the bank said.
Total
income was Rs1,830.72 crore (Rs1,491.45 crore). Net interest
income was Rs634.48 crore (Rs534.72 crore). Other income
was Rs165.04 crore (Rs133.69 crore). Total expenditure
was Rs1,404.24 crore (Rs1,138.37 crore).
The
total provisioning increased to Rs157.89 crore (Rs64.69
crore). Capital Adequacy Ratio was 11.25 per cent (12
per cent). The proportion of net NPAs to total assets
fell to 1.22 per cent (2.39 per cent). The bank saw a
recovery of Rs193 crore in the first quarter (Rs129 crore)
due to the robust credit monitoring system put in place
to arrest slippage and help recovery, Nair said.
Last
year, the bank had an interest income from tax refund,
which was not there this year. This too brought the revenues
down, he said. Total deposits increased by 21.15 per cent
to Rs76,517 crore (Rs63,158 crore). The share of low-cost
CASA deposits (current account and savings account) increased
to 33.62 per cent of total deposits against 32.37 per
cent last year. Total advances grew by 34.09 per cent
to Rs55,802 crore from Rs41,615 crore. Retail advances
grew by 38.07 per cent, agricultural advances grew by
30.17 per cent and infrastructure lending grew by 33.68
per cent.
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HDFC
Standard introduces new products
Mumbai: HDFC Standard Life has introduced three
new products as per the new unit-linked guidelines (ULIP)
which include--HDFC Unit Linked Endowment Plus, HDFC Unit
Linked Young Star Plus, and HDFC Unit Linked Pension Plus.
The
new range of products have a one-year Investment Content
Rate (ICR) structure wherein, a major portion of the charges
is deducted in the first year itself, and thereafter almost
the entire amount is invested.
Some
of the key features are top-up benefits, partial withdrawal
benefits and loyalty bonus units of the fund value added
every year to the policy-holder's fund, in addition to
all the other benefits available with unit linked plans.
The products are targeted at all age groups, above 18
years.
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Karnataka
Bank in financing pact with New Holland Tractors
Mangalore: Karnataka Bank has signed a pact with
New Holland Tractors (India) Pvt Ltd for financing tractors
and other farm equipment manufactured by the company.
The bank said that the finance would be extended under
bank's `KBL - New Holland Sarathi Scheme'. The farmers
availing of finance under the scheme will get a benefit
of sum equal to the first year's insurance premium for
the tractor and the tractor will carry a warranty of two
years from the date of sale, the release added.
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KPMG
to assess banks' preparedness for Basel II Accord
New Delhi: KPMG will begin a survey of the banking
system in the country to assess the level of preparedness
of banks in meeting with the requirements of the Basel-II
Capital Accord.
According
to KPMG the survey would look at bank's state of preparedness
and also whether there are any issues of concern to banks
in the implementation of the Basel-II programme. He said
he was in discussions with some banks to help them implement
the Basel-II accord in respect of operation risk. While
the 1988 capital accord addressed market and credit risks,
Basel II had substantially changed the treatment of credit
risk and also required banks to have substantial capital
to cover operational risks.
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