Rupee weakens
Mumbai: The rupee weakened against the greenback on Thursday, ending at 46.20. On Wednesday, the rupee closed at 46.16/17.

G-Secs: The traded volume on the order matching system was Rs2,655 crore (Rs2,990 crore). The 7.59 per cent-10 year-2016 paper ended at Rs98.74 (7.78 per cent YTM) against Wednesday's close of Rs98.72 (7.78 per cent YTM). The 9.39 per cent-5 year-2011 paper ended at Rs107.41 (7.52 per cent YTM).

Call rates: The inter bank rates remained unchanged between 6 and 6.1 per cent.

Reverse repo: In the first one-day reverse repo auction under LAF, the Reserve Bank of India received and accepted 17 bids amounting to Rs23,800 crore and in the second one-day reverse repo auction, 27 bids for Rs19,700 crore. There were no repo bids.

CBLO: The CBLO market saw 258 trades aggregating Rs15,583.3 crore in the 5.85-6.10 per cent range.
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Norms issued for financial entities investing abroad
Mumbai: Indian entities in the financial sector engaged in financial and non-financial activities, that are investing directly in overseas ventures will have to obtain approvals from domestic and foreign regulators, according to an RBI notification.

The Indian entity should also be registered with the regulatory authority in India. It is also required that the domestic entity should have earned a net profit in the preceding three financial years and also have fulfilled capital adequacy norms as laid down by the regulators.

Indian entities setting up joint ventures or wholly owned subsidiaries for trading in overseas commodities exchanges would require clearance from the Forward Markets Commission.

Trading on the commodities exchanges shall be considered as a financial activity. Unregulated Indian entities, those that do not report to any regulator but engaged in financial services, may invest in overseas non-financial sector activity through a joint venture or a wholly owned subsidiary.

It has also been laid down that investments by such an entity shall not exceed 100 per cent of its net worth.
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SVC bank completes acquisition of Mahavir Co-op Bank
Mumbai: Shamrao Vithal Co-operative Bank (SVC) has acquired Kolhapur-based Mahavir Co-operative Bank for Rs13 crore, completing the process on September 3.

According to S. Hemmady, chairman, SVC, "The acquisition of Mahavir will give us entry into the agricultural sector where we have no exposure and no experience, at present."

Mahavir has four branches in Kolhapur and one each in Sangli and Jaisinghpur. It also has five rural branches in Maharashtra's sugar belt.

In June 2006, SVC acquired Nashik-based Saptashrungi Co-operative Bank for Rs7.25 crore. Following the deal with Mahavir, the branch network of SVC has increased to 51 branches and 10 extension counters. Two other banks are likely to be added to SVC this fiscal.
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Lord Krishna Bank staff on indefinite strike
Kochi: Krishna Bank employees under the aegis of the United Forum of LKB Unions have commenced an indefinite strike against the bank's proposed merger with Centurion Bank of Punjab.

They have demanded that LKB should be taken over by a public sector bank and have also asked for an enquiry into the reasons for the deterioration of the bank's financial health necessitating merger.
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