Rupee
declines against dollar
Mumbai: The
rupee declined against the US dollar due to rising demand
for the US currency from domestic oil companies. The rupee
opened at 46.50/51, touched an intra day low of 46.54
but recovered slightly on account of exporters selling
dollars. It closed at 46.49/50 against the previous close
of 46.45/46.
The
rupee is expected to weaken further in the week due to
month-end demand from importers, the dealer said.
Forwards:
In the forward-premia market, the six-month premium
ended at 1.38 per cent (1.41 per cent) and the 12-month
premium ended at 1.33 per cent (1.35 per cent).
Bonds:
Bond prices were range-bound. The total traded volume
stood at Rs2,480 crore on the order-matching system. Dealers
said that the rise in the price of global crude and the
pressure on domestic liquidity were concerns for market
participants.
The
outlook for the bond market seems to be bearish for the
near term and the 10-year yield could inch up to 8.10
per cent," said a dealer at a private bank.
G-secs:
The 7.59 per cent-10 year-2016 year paper opened
at Rs97.13 (8.02 per cent YTM) and ended at Rs97.09 (8.03
per cent YTM), against Monday's close at Rs97.06 (8.03
per cent YTM). The 8.07 per cent-11 year-2017 paper
opened at Rs99.79 (8.10 per cent YTM) and closed at Rs99.85
(8.09 per cent YTM), compared to Rs99.76 (8.10 per cent
YTM) on Monday.
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Tata
Motors to spin off auto finance arm
Mumbai: Tata Motors is planning to hive off its
vehicle-financing division, Tata Motorfinance, into a
separate entity, before the launch of its Rs1 lakh car
so that Tata Motorfinance, can tap the opportunities that
arise when the new car is launched in 2008.
Analysts
said as Tata Motors is an automobile company, it should
not keep debt beyond a prescribed limit in its balance
sheet and hence the move to separate the automobile financing
arm into a separate company.
However,
the entire portfolio of the auto financing business of
Tata Motors would not be transferred to the new entity.
Tata Motors had availed of tax benefits due to losses
incurred by the automobile finance business.
The
Tata group had sometime back closed down its beleaguered
NBFC arm Tata Finance, which had a huge capital market
exposure. Now it seems to readying to revisit the NBFC
segment even though the Reserve Bank of India is not willing
to grant banking licences to corporations.
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PNB
offers insurance to home loan borrowers
New Delhi: Punjab National Bank (PNB) has tied
up with Tata AIG Life Insurance to offer insurance covers
to home loan borrowers. A new product `Mortgage
Reducing Term Assurance'
has been launched by PNB for its existing as well as new
housing loan borrowers. Under the scheme, the bank would
offer insurance cover of loan outstanding on the payment
of a single one-time premium to protect the house and
save the bereaved family from housing loan debt in case
of death of the borrower.
PNB
said a very low premium, approximately 2.5 per cent of
the loan amount, would have to be paid as one-time premium
at the age of 40 for repayment tenor of 15 years. This
is a one-time premium that is financed by the bank as
part of the housing loan. This product would also be optional
for the borrower and the maximum sum insured could be
Rs1 crore.
The
insurance cover would be available for the period up to
20 years or 65 years of age, whichever is earlier.
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Bharti
AXA Life flags off insurance biz
Hyderabad: Bharti AXA Life Insurance Company has
started its operations by opening its first branch in
the city. The insurer aims to have several points of presence
through strategic partnerships. One of the major partnerships
of the insurance JV would be with Bharti Airtel, which
has a large customer base of over 25-million, and is growing
at around a million new customers a month. The partnerships
would range from financial intermediaries to non-financial
intermediaries with strong customer base. Besides having
a presence in metros and mini metros, Bharti AXA will
be well represented in the tier-II and upcountry markets.
Bharti
AXA has launched two unit-linked products - `Future Confident'
targeted at the masses and `Wealth Confident' targeting
the affluent segment.
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UTI
Bank offers debit card for SMEs
Mumbai: UTI Bank in association with MasterCard
launched an international debit card for small and medium
enterprises and self-employed professionals. The card
has a five-year validity and a daily Point of Sales usage
limit of Rs 2 lakh, said a press release from the bank.
It
would also feature daily cash withdrawal limit of Rs50,000
and zero lost-card liability. The card offers personal
accident cover of Rs 5 lakh and access to MasterCard lounges
at domestic and international airports in five cities
in India. The card can be used by current account holders.
UTI Bank currently has a portfolio of 4.7 million debit
cards.
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