Rupee
range bound
Mumbai: The rupee was under pressure due to dollar
demand, due to gold buying though dealers said the rupee
is not expected to weaken. The rupee opened at 46.14/15
due to a weaker yen, and touched a low of 46.17 before
ending trade at 46.14/1450, slightly lower than Friday's
close of 46.12.
Forwards:
The six-month premium closed at 1.36 per cent (1.3 per
cent) and the one-year closed at 1.34 (1.3 per cent).
Bond: Bond prices rose by around 30 paisa on expectations
of a pause in interest rate hike cycle in the US.
G-secs:
The 7.59 per cent-10 year-2016 paper opened
at Rs98.4 (7.83 per cent YTM) and closed at Rs98.74 (7.778
per cent YTM), higher than Friday's close at Rs98.42 (7.83
per cent YTM). The 8.07 per cent-11 year-2017 paper
opened at Rs101.25 (7.88 per cent YTM) and ended at Rs101.72
(7.82 per cent YTM), higher than Friday's close at Rs101.36
(7.87 YTM).
Call
rates: Call rates were between 6.25 per cent and 6.35
per cent against Friday's 6.10-6.20 per cent.
Reverse
repo: In the first one-day reverse repo auction under
LAF, Reserve Bank of India received and accepted six bids
amounting to Rs1,140 crore and in the second one-day reverse
repo auction, seven bids for Rs2, 485 crore.
CBLO: The CBLO market saw 345 trades aggregating
to Rs19,970.60 crore in the 6.05-6.35 per cent range.
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BoB
applies for life insurance foray
Mumbai: Bank of Baroda (BoB) is applying for regulatory
approvals for foraying into life insurance business through
a joint venture route as the board of the public sector
bank has already given its approval for setting up of
the life insurance joint venture.
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Sundaram
Finance raises interest rates
Chennai: Financial services company Sundaram Finance
has increased the interest rates on fixed deposits by
0.5 per cent. Deposits for a period of 1-2 years would
now yield 8 per cent interest and those above three years
8.50 per cent, a company statement said. The revised rates
are effective from September 1, it said.
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Lakshmi
Vilas Bank to come out with rights issue
Mumbai: Tamil Nadu-based Lakshmi Vilas Bank (LVB)
plans to raise Rs98.36 crore through a rights issue to
take its networth beyond the minimum Rs300 crore prescribed
by the Reserve Bank of India (RBI).
The
private sector bank will issue 1.96 crore equity shares
of Rs 10 each to existing shareholders at a premium of
Rs 40 per share. The ratio of rights shares in 1:1.
LVB's
networth after the rights issue will increase to Rs389.41
crore from Rs 291.04 crore now and Rs229.99 crore at the
end of March 2006.
The
bank is also issuing bonus shares in the ratio of one
bonus share for the two existing shares. However, the
bonus shares are not entitled for the rights share.
The
bank's capital adequacy ratio as on March 31, 2006 was
10.79%, as against the RBI stipulation of 9%. The shares
of LVB today closed 8.88% up at Rs121.35 per share on
the National Stock Exchange. The book value of LVB shares
is Rs149 per share.
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BoM
enters retail banking
Pune: Bank of Maharashtra (BoM) has forayed into the
booming retail banking business and has created a separate
retail credit department headed by a senior banking official
Vinod N Dalvi, as general manager in-charge of retail
credit.
The
bank plans to increase the share of retail credit to 21
pc of total advances by end-FY07 from 13 pc at end-March
2006. BoM's total advances as on March 31, 2006 stood
at Rs16,469.72 crore.
BoM
has already started distributing life insurance policies
of Life Insurance Corporation of India (LIC) and general
insurance products of United India Insurance Company.
The
bank is also making efforts to increase focus on fee-based
services and as part of the plan, would soon start selling
mutual fund products. The bank is in talks with 'three
leading mutual funds' for distribution of their products,
M D Mallya, chairman of the bank, said.
The
bank is on course to implement core banking solution and
100 key branches will be brought in the ambit of CBS by
end-FY07, Mallya said.
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Union
Bank signs pact with DGFT
Kochi: Union Bank of India has entered into an agreement
with the Director General of Foreign Trade (DGFT) and
has been provided with an electronic payment facility
by the latter for payment of application fees for licensing
schemes.
The
bank's clients can make online payment of fees to DGFT,
view successful payment immediately and take printouts
for their record.
In
case the transaction is not successful, refund will also
be online into the customers' bank account.
Union
Bank is one of the few banks offering e-payment facility
for licence fees, a release from the bank said.
The
bank is also implementing Reuters' leading edge pricing
engine technology. For this, the bank is offering Reuters
Trading for Foreign Exchange (RTFX) and Reuters Trading
for Bullion (RTFB). Participating in RTFX and RTFB trading
platform in conjunction with the deployment of electronic
trading pricing engine would empower the export/import
customer to have a platform for hedging and trading in
foreign currency. Union Bank says it is the first among
public sector banks to become a market maker for RTFX
and RTFB.
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