Re gains
Mumbai: The rupee moved up by around seven paise against the dollar on Friday on the back of FII inflows into the stock markets.

The rupee opened at 44.90/91 and closed at 44.82. On Thursday, the rupee had closed at 44.89. In forwards, the six-month premium closed at 1.98 per cent (1.88 per cent) and the one-year premium at 1.84 per cent (1.78 per cent).

Bonds: Bond prices dropped sharply by around 29 paise (yields went up by four basis points) on tight liquidity. Total traded volume on the order matching system decreased to Rs2,585 crore (Rs4,810 crore).

Call rates: Call ruled unchanged between 6.9 per cent and 7 per cent.

Reverse repo: In the first three-day reverse-repo auction under LAF, the RBI received and accepted three bids amounting to Rs365 crore. There were no repo bids. In the second three-day reverse-repo auction, the RBI accepted and received 10 bids for Rs7,950 crore.

CBLO: The CBLO market saw 392 trades aggregating to Rs22,062.50 crore in the 5.50-6.35 per cent range.
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Canara Bank global issue in final stages
Hyderabad: Canara Bank's pricing for its international capital issue of $300 million is likely to be closer to 100-125 basis points over the London Interbank Offered Rate (LIBOR). The six-month LIBOR is currently about 5.25 per cent.

The sources indicated that the rating was likely to be in line with India's sovereign rating, which is just one notch below investment grade.
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RBI not in favour of banks outsourcing core functions
Mumbai: Banks should not outsource core management functions, including internal audit, compliance functions and decision-making functions, the Reserve Bank of India has said.

The decision-making functions that may not be outsourced include determining compliance with know your customer (KYC) norms for opening deposit accounts, according sanction for loans (including retail loans) and management of investment portfolios, said the RBI's final guidelines on outsourcing of financial services.
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Forex reserves rise another $939mn
Mumbai: Forex reserves rose $939 million to $167.092 billion for the week ended October 27. In the previous week, reserves went up by $1.202 billion to $166.153 billion. Foreign currency assets increased by $932 million to $160.236 billion during the week, according to RBI's Weekly Statistical Supplement. "There were strong FII inflows of around $251.3 million during the week," said a chief dealer of a private bank. The reserves with IMF rose $1 million to $647 million and special drawing rights were up $6 million to $7 million. The euro traded in the range of $1.2544 to $1.2664. Gold reserves were unchanged at $6.202 billion. Dealers expect rupee to touch 44.65 levels next week.
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Banks not allowed to hold more than 10 pc stake in NBFCs
Mumbai: Banks in India, including foreign banks, cannot hold more than 10 per cent of the paid-up equity capital of a deposit taking NBFC. The rule will not apply to investment in housing finance companies. Banks have been given two months to comply with the edict, which could halt NBFCs from doubling for banks.

Also bank exposure (lending and investment, including of balance sheet exposures) to a single NBFC shall not exceed five per cent of the bank's net worth as per its last published balance sheet. Further, the aggregate exposure of a bank to all NBFCs should not go beyond 40 per cent of the bank's net worth. Bank sponsored NBFC will be allowed to offer discretionary portfolio management services to their clients, on a case-to-case basis.
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SBI: No plans to hike interest rates immediately
New Delhi: State Bank of India said it has plan to hike interest rates immediately.

Officials said that there could be some pressure on deposits rate in January-February as demand tends to pick up during the period.
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