Rupee up marginally against the greenback
Mumbai: The rupee gained marginally against a weak dollar on Thursday, opening and closing at 45.32/22. On Wednesday, the rupee had closed at 45.37.

Forwards: The six month premia closed at 1.59 per cent (1.62 per cent) and the one-year remained unchanged at 1.55 per cent.

G-Secs: The 7.59 per cent-10 year-2016 benchmark paper closed at Rs99.42 (7.67per cent YTM), against Wednesday's Rs99.43 (7.68 per cent YTM). The 9.39-5 year-2011 paper ended at Rs107.45 against Wednesday's close Rs107.39 (7.49 per cent YTM).

Call rates: The inter bank rates stood at 6.85-6.95 per cent against 6.75-6.85 per cent.

Reverse repo: In the first one-day reverse repo auction under LAF, the Reserve Bank of India received and accepted three bids amounting to Rs360 crore and in the second one-day reverse repo auction, four bids for Rs1,175 crore.

CBLO: The CBLO market saw 394 trades aggregating to Rs22,334.80 crore in the 6-7 per cent range.
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AIG Capital gets NBFC licence
Mumbai: AIG Capital India Ltd has received regulatory approval from the Reserve Bank of India to operate as a wholly owned non-banking finance company (NBFC) of American International Group, Inc. This will allow AIG Capital India to launch any of the 19 permitted financial services in India.
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Centurion, LKB merger challenged at the Kerala High Court
Kochi: A shareholder of Lord Krishna Bank (LKB) has challenged the decision taken at an AGM to merge the LKB with the Centurion Bank of Punjab at he Kerala High Court.

The petitioner has asked that the affairs of the bank be investigated. He has also alleged that most of the shareholders were prevented from participating in the AGM held on September 30. He has further alleged that the AGM hastily transacted all the eight items on the agenda, including the merger resolution, violating all the company laws.

According to the petitioner, no discussion was allowed on the merger proposal and no independent Chairman was appointed as per the norms in the case of an amalgamation scheme approved by the High Court. Amongst other allegations the petitioner has also said that the shareholders were not given an opportunity to discuss the affairs and review the working of the bank.

The petitioner has alleged that the audited balance sheet was passed without any discussion.
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HDFC net profit up 23% at Rs368-cr
Mumbai: Housing Development Finance Corporation (HDFC) has posted 23 per cent rise in its net profits for the second quarter at Rs368.02 crore as compared with Rs298.98 crore in the same period last year.

The housing finance major said that its interest income rose by 38.41 per cent to Rs1,446.7 crore in the current quarter over Rs1,045.2 crore during the same period a year ago.

The home loan approvals moved up by 28 per cent to Rs14,729 crore at the end of September 2006. The disbursements saw a 27 per cent growth at Rs11,280 crore from Rs8,910 crore. The loan portfolio, including outstanding loans, deposits and investment in shares and debentures, to finance real estate-related project moved up by 25 per cent to Rs51,332 crore as against Rs41,065 crore.

The total assets rose by 24 per cent to Rs56,496 crore from Rs45,594 crore a year ago. Its deposits base stood at Rs11,205 crore at the end of September. The capital adequacy ratio stood at 13.5 per cent of risk weighted assets as against minimum requirement of 12 per cent. The tier-I capital adequacy was 8.1 per cent.
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Canara Bank Q2 net up 18.41%
Bangalore: Canara Bank has reported a net profit of Rs361.77 crore for the second quarter of the current financial year 2006-07, up 18.41 per cent from Rs305.51 crore posted during the corresponding quarter of the previous fiscal.

The bank posted a higher gross income of Rs2,993.23 crore (Rs2490.19 crore). Interest income on advances, investments and cash balances for the period rose to Rs2,679.95 crore (Rs2,101.27 crore).

Gross expenditure was contained at Rs2,378.05 crore (Rs1,909.08 crore). Interest expenditure was up at Rs1,698.84 crore (Rs1,294.60 crore.)

Deposits at the end of the quarter were Rs1,22,121 crore. The operating profits of the bank for Q2 were up at Rs615 crore (Rs 581 crore).

However, the bank has chosen to increase the provisions for non-performing assets to Rs197 crore (Rs165.07 crore). The higher provisioning was despite the reduction in gross non-performing assets to Rs1,761.45 crore (Rs2,296.19 crore). The reduction in NPA was helped by cash recovery of Rs443 crore.

He said that the bank hoped to reach the advances target of Rs95,000 crore by the end of FY07.

The bank had also applied for fresh branch licences in 21 international locations, in North America, Europe, West Asia and Far East Asia.
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Dewan Housing net up 23%
Mumbai: Dewan Housing Finance Ltd (DHFL) has reported a 23.43 per cent increase in net profit at Rs11.43 crore (Rs9.26 crore) for the quarter ended September 30, 2006.

Total income rose 40.9 per cent to Rs76 crore (Rs53.93 crore) while total expenditure climbed by 47 per cent to Rs62.14 crore (Rs42.15 crore).

Loan disbursements for the quarter grew 39.8 per cent to Rs381.55 crore (Rs273.75 crore). The company's capital adequacy ratio stands at 13.5 per cent of its risk weighted assets against the minimum requirement of 12 per cent.
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IDBI Q2 net up 6 pc
Mumbai: IDBI Ltd's net profit for the second quarter was up marginally by 6 per cent, touching Rs139.4 crore (Rs131.84 crore). The bank reported a fall in other income to Rs192.61 crore (Rs344.90 crore). Last year the bank had made a treasury profit of Rs192 crore from its long-term equity portfolio, which was a part of other income.

Deposits increased by 71 per cent to Rs30,953 crore as on September 30, (Rs18,158 crore) and advances by 17 per cent to Rs54,309 crore (Rs46,413 crore).

IDBI's branch network has increased to 430 following the merger with United Western Bank. The bank improved its cost of funds to 6.66 per cent (7.19 per cent). Treasury income increased to Rs650.59 crore (Rs 324.6 crore).

For the six-month period ended September 30, 2006, the bank had a net profit of Rs289.97 crore (Rs240.35 crore).
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Interest income lifts Kotak Bank net
Mumbai: The Kotak Mahindra Bank Ltd has posted a net profit of around 12 per cent at Rs34.8 crore (Rs31.18 crore) in the second quarter ended September 30, on a standalone basis.

Total income has also grown to Rs357.64 crore (Rs235.85 crore) while other income fell to Rs62.47 crore (Rs73.06 crore).

Advances grew by 79 per cent to Rs8,386 crore. Deposits were up 49 per cent at Rs8,194 crore.

CASA (current and savings accounts) deposits comprised 21 per cent of total deposits. Net interest income of the bank has shown a rise of about 64 per cent to Rs 141.28 crore (Rs 86.15 crore). Treasury and investments revenues have increased to Rs 99.25 crore (Rs 52.56 crore).

The bank has said that it plans to have around 110 branches by March 2007. Meanwhile, the board has approved the merger of the Trading and Principal (including primary dealership) division of Kotak Mahindra Capital Company Ltd (KMCC) into the bank.
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