Rupee declines against dollar
Mumbai: The rupee fell against the dollar on rising demand for dollars from domestic oil companies. The rupee opened at 46.24/26, and touched an intra-day low of 46.31 and finally ended at 46.30.

Forwards: In forwards, the six-month premium ended at 1.39 per cent (1.34 per cent) and the 12-month premium at 1.37 per cent (1.33 per cent).

Bonds: After a brisk start, bond prices got corrected on profit-booking. Prices moved in a band of 30 paise. The total traded volume on the order matching system was around Rs4,265 crore.

G-secs: The 7.59 per cent-10 year-2016 paper opened at Rs99.44 (7.67 per cent YTM) and closed at Rs99.24, against Friday's Rs99.32 (7.69 per cent YTM). The 8.07 per cent - 11 year-2017 paper opened at Rs102.40 (7.73 per cent YTM) and closed at Rs102.21 (7.75 per cent YTM).

Call rates: Call rates were between 6.00 and 6.10 per cent.

Reverse repo: In the first one-day reverse repo auction under LAF, the Reserve Bank of India received and accepted 19 bids amounting to Rs22,695 crore and in the second one-day reverse repo auction, 21 bids for Rs11,420 crore. There were no repo bids.

The CBLO market saw 247 trades aggregating to Rs14,857.55 crore in the 6.00-6.10 per cent range.
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HSBC to use card venture to extend `merchant loans'
Chennai: Global Payments Asia-Pacific, recently set up by the Hongkong and Shanghai Banking Corporation will help the bank's India operations in getting more merchant establishments - such as shops and restaurants - to use the bank's machines for swiping credit cards. However, HSBC is not just eyeing the fee that it will get from the shop-owners when they swipe a credit card on the machine provided by the joint venture but is looking for lending opportunities with the merchants. HSBC has a product which it calls `merchant loan' — which are loans given to a merchant equivalent to (say) 65 per cent of his projected sales through credit cards. Today, about 16,000 merchants use HSBC machines at their establishments to swipe credit cards. The bank has about 400 merchants who use the product (borrow against their credit card dues). The bank expects the product to help in its SME thrust in India, and complement other small-business products such as channel financing, trade financing and factoring services.
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ING Vysya Bank offloads stake in Bharat Overseas Bank
Chennai: ING Vysya Bank is said to have "sold off" its stake in the bank. Though the chairman and managing director of Indian Overseas Bank, T S Narayanasami, nor the heads of the other banks could be contacted for a confirmation, industry sources said the deal had been completed. Indian Overseas Bank has a 30 per cent stake in BhOBL. Earlier this year, it entered into an agreement with the other six bank-shareholders of BhOBL to buy them out. At the agreed price of Rs155 a share, Bank of Rajasthan, which has the second highest stake of 16 per cent would get Rs39 crore. ING Vysya Bank with 14.66 per cent will get Rs36 crore, Federal Bank (10.67 per cent) Rs26 crore, Karur Vysya Bank (10 per cent) Rs24 crore, South Indian Bank (10 per cent) Rs24 crore and Karnataka Bank (8.67 per cent) Rs21 crore.
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