Rupee range bound
Mumbai: The Indian currency moved in a five-paise range against the US dollar on Monday. The rupee opened at 46.41/42 and moved in the range of 46.41 and 46. 46 to close at 46.46.

Forwards: In the forward-premia market, the six-month premium ended at 1.41 per cent (1.43 per cent) and the 12-month premium at 1.35 per cent (1.37 per cent).

Bonds: The bond market was also range-bound due to profit booking post the government securities auction. Bond prices moved in a band of 15-20 paise.

Liquidity has also come down and amounts in the reverse repo and repo auctions were slightly above Rs20,000 crore against amounts of around Rs30,000 crore last week," said the dealer.

G-secs: The 7.59-per cent 10-year 2016 paper opened at Rs97.13 (8.02 per cent YTM) and closed at Rs97.06 (8.03 per cent YTM). The 8.07-per cent 11-year 2017 paper opened at Rs99.69 (8.11 per cent YTM) and closed at Rs99.76 (8.10 per cent YTM).

Call rates: Call rates were between 6.05 per cent and 6.15 per cent on Monday against 6-6.10 per cent on Friday.

Reverse repo: In the first one-day reverse repo auction under LAF, the Reserve Bank of India received and accepted 15 bids amounting to Rs14,580 crore, and in the second one-day reverse repo auction, 20 bids for Rs9,940 crore.

There were no repo bids.

CBLO: The CBLO market saw 317 trades aggregating to Rs17,711.10 crore in the 5.80-6.06 per cent range.
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SPIC may get overseas funds to restructure debt
Chennai: Southern Petrochemical Industries Corporation may get funds from Deutsche Bank, ADM Capital and the US-based WL Ross to restructure its debt of about Rs2,850 crore. The multi-scenario restructure proposal has been submitted by the company to the consortium of bankers, which is currently examining it.

SPIC's proposal speaks of three separate options. The heart of the proposal is ring-fencing of the fertilisers business into a company that may be called SPIC Fertilisers Ltd and the funders getting stakes in it at a later date.

Under the first option, SPIC would transfer Rs848 crore of debt to SPIC Fertilisers. The lenders would be given shares in this company for a price of Rs156, for a value of Rs 759 crore. They would also be given shares at a price of Rs30 in SPIC Petrochemicals Ltd for Rs371 crore.

SPIC would divest its stake in Tamilnadu Petroproducts, Manali Petrochemicals and the pharma business and raise Rs201 crore and pay the lenders. The lenders would write off loans worth Rs666 crore.

The second option seeks to "induct new investor and effectuate one-time-settlement of all current lenders." Under this, Deutsche Bank would bring in $250 million (Rs1,100 crore) against the security of current and future assets of the fertilisers business and pledge of SPIC's 52 per cent stake in Indo Jordan Chemicals. The lenders would write off loans of Rs1,004 crore. Sources said that at a later date, Deutsche Bank would convert a part of the debt into equity.

The third option is to "induct new investor and effectuate one-time-settlement of part lenders and restructure of the remaining." This option envisages two scenarios, the first involving ADM Capital and the second, WL Ross. The two have offered to bring in $115 million (Rs475 crore) and $350 million (Rs1,540 crore) respectively.
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IDBI Bank hit with Rs5 lakh fine for violating KYC norms
Mumbai: The Reserve Bank of India (RBI) has again slapped IDBI Bank with a Rs5 lakh fine for violation of guidelines in the IPO allotment scam case.

RBI said it imposed the fine on IDBI Bank for violation of the RBI guidelines on opening of accounts, including joint accounts, know your customer (KYC) norms and also for violation of guidelines relating to IPO financing.

HDFC Bank has also been fined for the second time for its role in facilitating the IPO allotment scam.

In February, RBI had fined HDFC Bank Rs25 lakh, ING Vysya Bank Rs10 lakh and IDBI Rs5 lakh. In January 2006, the RBI had penalised seven banks.
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Union Bank to recover Rs350-cr by September
Chennai: Union Bank of India may recover Rs350 crore of bad debts by September end. As on July 31, the bank's total bad debt was to the tune of Rs1,970 crore.

The bank is focussing on recovery of bad debts and has so far recovered about Rs192 crore in the last four months.

In the case of even one to two loan installments not being paid, the account gets close scrutiny to stop it from being a non-performing asset.

During the first quarter of the current financial year, the bank has served 7,000 notices and taken possession of properties under the Sarfaesi Act ( an act which helps bank take possession of loans that have turned non performing assets).
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