Rupee up against dollar
Mumbai: The rupee gained against the dollar on Wednesday on rising supply of dollars, a positive stock market and a weakening US currency.

The domestic currency opened stronger at 44.92/93 and touched a high of 44.84/85 during day trade. It ended at 44.86/86 against Tuesday's close of 45.02.

Forward premia continued to be high. The six-month premium closed at 2.07 per cent (2.13 per cent) and the one-year closed at 1.83 per cent (1.89 per cent).

Bonds: Bond prices gained around ten paise and yields dropped by two basis points tracking US yields.

G-secs: The 7.59 per cent 10-year 2016 paper opened at Rs99.84 (7.61 per cent YTM) and closed at Rs99.85 (7.61 per cent YTM) against Rs99.75 (7.63 per cent YTM) on Tuesday. The 8.07 per cent 11-year 2017 paper opened at Rs102.91 (7.65 per cent YTM) and closed at Rs103.03 (7.63 per cent YTM) against Rs102.87 (7.66 per cent YTM) on Tuesday.

Call rates: Call rates ruled between 6.85 per cent and 6.95 per cent.

Reverse repo: In the first one-day reverse-repo auction under LAF, the RBI received and accepted two bids amounting to Rs260 crore. There were no repo bids. In the second one-day reverse-repo auction, the RBI accepted and received nine bids for Rs4,315 crore.

CBLO: The CBLO market saw 407 trades aggregating to Rs22,920.15 crore in the 5.95-6.75 per cent range.
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Yes Bank raises Rs180-cr as Tier-II capital
Mumbai: Private sector bank Yes Bank has raised Rs180 crore ($40 million) as subordinated Tier-II debt through the issue of unsecured, redeemable non-convertible, subordinated bonds. The size of the issue was Rs100 crore ($22.3 million) with an option to retain over subscription of Rs80 crore ($17.7 million). The bank received subscription for the entire issue, including the green-shoe option, a bank release said.

The bonds mature in 114 months and carry a coupon rate of 9.1 per cent per annum.

Rana Kapoor, managing director and CEO of the bank said that the private placement of bonds is being made to augment Tier-II capital base for further strengthening capital adequacy and enhancing the long-term resources of the bank.

The equity and debt capital raising initiatives are a part of the bank's overall plan to raise up to $150 million by the end of March 2007.
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Repo rate hike to strengthen banks: Government
New Delhi: The Government has said a hike in repo rate by the RBI is not intended to make loans costlier but to strengthen banks and make them self sufficient for lending.

Mr Bansal said the 0.25 percentage point increase in repo rate is aimed at containing inflation, while hinting that banks would have to depend on their own resources for liquidity.
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DCB raises deposits rates
Mumbai: The Development Credit Bank has raised its interest rates on term-deposits below Rs15 lakhs. The rates on 46-87 days have been revised to 6 per cent per annum (4.75 per cent per annum) and on deposits for 88 to 177 days it has gone up to 7 per cent per annum (6 per cent). For deposits of 178 to 237 days, the rates have been revised to 8.08 per cent per annum (6.50 per cent per annum).
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IndusInd Bank net drops
Mumbai: IndusInd Bank's net profit fell 45 per cent to Rs17.18 crore (Rs31.49 crore) during the quarter ended September 30 mainly due to absence of profit on securitisation in the second quarter and increase in the cost of deposits the bank said.

Total income increased to Rs429.01 crore (Rs352.03 crore). Net interest income was down at Rs65.75 crore (Rs91.42 crore). Net interest margin dipped to 1.34 per cent (2.24 per cent).

NIM was impacted by higher interest cost and absence of securitisation profit the bank statement said.

Total advances stood at Rs10,724 crore (Rs9,082 crore) and deposits were at Rs15,986 crore (Rs13,913 crore).
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