Rupee falls against dollar
Mumbai: The rupee fell against the dollar on Monday as public sector banks bought dollars on behalf of the central bank. The rupee opened at 44.13 and touched an intra-day high of 44.10/11 and then dropped to a low of 44.18/19 to finally end at 44.1550/1650, against Friday's close at 44.12/13.

Forwards: In forwards, the six month closed at 3.02 per cent (3.21 per cent) and the 12 month ended at 2.89 per cent (3.11 per cent).

Bonds: Bond prices fell by 20 paise and yields moved up by three basis points on profit booking. Total traded volumes on the order-matching system increased marginally to Rs1,640 crore (Rs1,185 crore).

G-secs: The 8.07-10 year-2017 benchmark government paper opened around 15 paise higher at Rs101.95 (7.78 per cent YTM) and closed at Rs101.60 (7.83 per cent YTM) against Friday's close of Rs101.80 (7.80 per cent YTM).

The 7.37 2014 paper opened at Rs97.75 (7.78 per cent YTM) against Rs97.38 (7.85 per cent YTM).

Call rates: Call rates remained at 6.50-6.70 per cent from the previous close.

Reverse repo: In the first one-day reverse repo auction under LAF, the RBI received and accepted one bid for Rs20 crore.

In the second one - day reverse repo auction, RBI received and accepted six bids for Rs2,135 crore. There were no repo bids in the first and second one - day auctions.

CBLO: The CBLO market saw 373 trades aggregating to Rs21,936.65 crore in the 6.18 - 8 per cent range.
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Indian signs contract with German bank
New Delhi: Domestic carrier Indian has entered into a contract with German bank KfW IPEX, for financing the purchase of the first batch of 10 Airbus A-320 aircraft that the airline is to purchase.

The 10 aircraft are to be delivered during this year.

KfW IPEX will lend $500 million to Indian, which has to be paid back over 12 years. The airline has ordered 43 Airbus A-320 aircraft at an estimated cost of more than $2 billion.
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Thomas Cook ties up with LKP Forex to offer money transfer
Mumbai: Thomas Cook India has tied up with LKP Forex to offer Money Gram's money transfer services through its 123 branches from 1 February.

Money sent through Money Gram can be received across the network of Thomas Cook and its sub-agent locations including IDBI Bank and South Indian Bank.

The receiver has to fill up a form and show his photo identity to receive the funds.
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Ministry compensates OMCs with Rs5,000 crore oil bonds
New Delhi: The Finance Ministry has for the fourth time compensated the oil marketing companies with the issue of special `oil bonds' amounting to Rs5,000 crore.

These bonds are being issued to OMCs as compensation for selling LPG and kerosene in the domestic market below their cost prices during the current financial year.

The special bonds would mature in 2024 and would carry an interest of 8.2 per cent per annum. The investment in these bonds by the banks would not be reckoned as an eligible investment in Government securities for their statutory requirements.

While Indian Oil Corporation, including IBP has received bonds worth Rs2,953.02 crore, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd has received bonds worth Rs1,040.03 crore and Rs1006.95 crore, respectively.
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World Bank offers loans to Southern states for irrigation
New Delhi: The World Bank has agreed to provide a $485 million loan to Tamil Nadu for restoration of water tank bodies linked to irrigation and is considering similar loans to Andhra Pradesh, Karnataka and Orissa.

The Tamil Nadu Irrigated Agriculture Modernization and Water-Bodies Restoration and Management Project is designed to modernise irrigation systems covering over 600,000 hectares in 63 selected sub-basins throughout the State.

The World Bank is also considering providing $200 million to Andhra Pradesh and $150 million to Karnataka and Orissa, said Praful Patel, World Bank vice president (South Asia Region).

The World Bank may also provide $500 million for a project to revive rural cooperative credit structure in the country.

The Asian Development Bank has already signed a deal with the government to provide $1 billion to the same project.

At January 2007 end, World Bank group had 63 active projects with a net commitment of $12.7 billion.
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