Citigroup to set up extensive retail brokerage network in India
Citigroup is expanding operations on a large scale in India. The banking group is planning to build a retail brokerage network across India and would launch it under the Citigroup Smith Barney name by early November this year. The brokerage firm would initially focus on clients of Citigroup units already active in the country.

Next year, the US-based bank plans to build a 25-branch brokerage network that it hopes will boost its other businesses, such as its nascent private banking operation and its services targeting small and medium-sized enterprises.

Citigroup's move follows a boom in the market for investment banking services in India, with rapid economic growth spurring a wave of equity issuance alongside merger and acquisition activity. Citigroup is jostling with DSP Merrill Lynch, JM Morgan Stanley, Deutsche Bank, UBS and JPMorgan, ABN Amro for market share.
Back to News Review index page  

Rupee strengthens
Mumbai: The rupee strengthened by around 10 paise against the dollar on Thursday, on the back of strong FII inflows.

The rupee opened at 45.92 and touched an intra-day high of 45.8250 to close at 45.86/87, up from Wednesday's close at 45.97.

In the forward premia market, the 6-month premium closed at 1.22 per cent (1.21) and the 12-month ended at 1.26 per cent (1.25).

Bonds: After gaining for three consecutive days, the bond market saw a sell off following statements by the US Federal Reserve and the RBI Governor, Dr Y. V. Reddy, which indicated hardening of interest rates. Bond prices fell by about 40 paise on Thursday.

The total traded volume on the order matching system was Rs5,900 crore (Rs8,605 crore).

G-secs: The 7.59 per cent - 10 year-2016 paper opened at Rs99.93 (7.60 per cent YTM) and ended at Rs99.45 (7.68), down from the earlier close Rs99.85 (7.61). The 8.07 per cent-11 year-2017 paper opened Rs102.7 (7.68 per cent YTM) and closed at Rs102.41 (7.72), lower than the previous close of Rs102.84 (7.66).

Call rates: Call rates were firmer at 6.30-6.40 per cent (6.60-6.80 per cent). Liquidity also improved to Rs13,415 crore from Rs 8,625 crore on Wednesday.

Reverse repo: In the first one-day reverse repo auction under LAF, the Reserve Bank of India received and accepted six bids amounting to Rs5,485 crore and in the second auction, eight bids for Rs7,930 crore.

The CBLO market saw 329 trades aggregating to Rs17,527 crore in the range of 6-6.45 per cent.
Back to News Review index page  

UTI Bank selects Pyxis software
Mumbai: Pyxis Systems that provides technology solutions to the global financial derivatives industry, has said that UTI Bank has selected its RisKompass software as the software solution for financial derivatives risk management. RisKompass is a software system, which enables clients to manage derivative trades in a more controlled manner from the front to the back office. It is capable of handling valuation and risk management of a wide range of derivatives instruments, including structured products.
Back to News Review index page  

Bajaj Allianz Life lays out expansion strategy
New Delhi: Bajaj Allianz Life Insurance Co has chalked out aggressive strategies including introducing new products and tapping the rural market. Besides tying up with seven regional rural banks (RRBs) sponsored by Syndicate Bank to tap the rural market, the company also proposes to introduce micro-insurance products and come out with a new capital guarantee product.
The company had already applied to the Insurance Regulatory and Development Authority for a capital guarantee and pension product.

To increase its presence in the rural market, the company had recently tied up with `Godrej Aadhaar' retail chain and also with seven RRBs sponsored by Syndicate Bank. Apart from this, it has tied up with numerous district co-op banks and NGOs to tap the rural market.
Back to News Review index page  

NTPC takes 300mn loan from ADB
New Delhi: NTPC Ltd has taken a $300 million loan from the Asian Development Bank on to part-finance two of its power projects. Banc of America Securities Asia Ltd, a subsidiary of Bank of America, has underwritten $225 million of the loan while ADB is funding the remainder through one of its schemes.
This is the first time ADB has lent money to an Indian corporate through its Complementary Finance Scheme, NTPC said in a statement.

The loan will finance a portion of NTPC's planned power generation capacity expansion, including a portion of the foreign exchange requirements of the Sipat Super Thermal Power Plant project (stages I and II) in Chattisgarh and the Kahalgaon Thermal Power Plant project (Stage II) in Bihar.
Back to News Review index page  

Cabinet gives ex-post facto nod for change in banking Bill
New Delhi: The Union Cabinet has given its ex-post facto approval for modifying the Banking Companies Bill 2005 to allow the Reserve Bank of India to recommend a person, other than an officer of the central bank, for appointment as a director in the board of public sectors banks.

Allaying apprehensions in certain quarters that RBI nominee in public sector boards may be eased out through the Banking Companies Bill 2005, the Finance Minister, Mr P. Chidambaram, had then said that "an additional amendment" was being introduced to ensure that RBI continued to have a say in such appointment.
Back to News Review index page  

LIC to raise solvency margin by Rs7,000 crore
New Delhi: Life Insurance Corporation (LIC) has said it will increase its solvency margin by Rs7,000 crore to Rs37,000 crore by 2009 in order to meet the assurance of increasing the margin from 130 per cent to 150 per cent in the next two fiscals. Solvency margin is the money that insurance companies keep aside as a cushion against defaults and is calculated in proportion to various kinds of risks.
Back to News Review index page  

Fresh foreign fund buying halted in Centurion Bank
Mumbai: The Reserve Bank of India has said that foreign funds cannot acquire further stake Centurion Bank of Punjab.

Foreign holding in the bank has reached the maximum limit of 74 per cent of its paid-up capital, the central bank said.

The central bank also said foreign funds can purchase up to 49 per cent in DCM Ltd and up to 40 per cent in PVR Ltd.
Back to News Review index page