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Rupee at a two month high against the dollar
Mumbai: The rupee gained against the greenback for the third day in a row on good dollar inflows and exporter selling touching a high of 46.10/11, before ending trade at 46.16/17, at a two-month high. On Tuesday, the rupee had closed at 46.28.

Forwards: The six-month premium closed at 1.27 per cent (1.29 per cent) and the one-year premium closed at 1.3 per cent (1.33 per cent).

G-Secs: The traded volume on the order matching system was Rs2,990 crore (Rs5,695 crore). The 7.59 per cent-10 year-2016 paper closed at Rs98.72 (7.78 per cent YTM), lower than Tuesday's close at Rs98.90 (7.75 per cent YTM). The 8.07 per cent-11 year-2017 paper closed at Rs101.72 (7.82 per cent YTM), against Tuesday's close at Rs101.89 (7.7984 per cent YTM).

Call rates: The inter bank call rate was unchanged at 6-6.1 per cent.

Reverse repo: In the first one-day reverse repo auction under LAF, the Reserve Bank of India received and accepted 20 bids amounting to Rs25,920 crore and in the second one-day reverse repo auction, 27 bids for Rs16,165 crore. There were no repo bids.

CBLO: The market saw 280 trades aggregating Rs15,329.15 crore in the 5.89-6.20 per cent range.
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Sicom steps in to bail out UWB
Mumbai: The State Industrial & Investment Corporation of Maharashtra (Sicom), acting in conjunction with the Maharashtra state government and a public sector financial institution, has decided to bail out the troubled Satara-based United Western Bank. A total of Rs350 crore would be pumped into the bank as per its restructuring plan.

The restructuring package has been cleared by the UWB board and will now be forwarded to the RBI before the September 7 deadline set by it. Sicom holds a little over 9 per cent in the troubled bank.

"We have drafted a reconstruction scheme according to which Maharashtra government, Sicom and a financial institution are planning to pump Rs350 crore into the bank. This proposal has now been placed before the bank board," said R M Premkumar, chairman Sicom.

The bank board meeting was also attended by a RBI representative.
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RBI signs MoU with Rajasthan Govt
Mumbai: The Reserve Bank of India has signed a memorandum of understanding with the Rajasthan Government to strengthen the State's urban co-operative banks. A State level task force on Urban Cooperative Banks has been constituted for Rajasthan.

B.P. Vijayendra, regional director of the Reserve Bank for Rajasthan, has been appointed the chairman of the Task Force, while Sudhanshu Pant, registrar of co-operative societies, Madhya Pradesh is its co-chairman.

Similar MoUs have been signed with the governments of Andhra Pradesh, Gujarat, Karnataka and Madhya Pradesh.

According to an RBI release, the objective of the exercise is to identify potentially viable urban co-operative banks for revival.
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domain-B : Indian business : News Review : 07 September 2006 : banking and finance