Rupee
unchanged
Mumbai: The rupee weakened slightly against the
dollar due to demand for dollars from importers. The rupee
opened at 44.21/22 and closed at 44.1850/1950, against
Tuesday's close at 44.1850. However, dollar inflows matched
demand for the rupee to close unchanged.
In
forwards, the six-month closed at 3.03 per cent (3.28
per cent) and 12 month ended at 2.93 per cent (3.09 per
cent).
Bonds:
Bond prices rose by over 30 paise. Total traded volumes
in the order matching system were at Rs6,135 crore (Rs2,130
crore).
G-secs:
The 7.37-7 year-2014 paper (most actively traded
paper) opened at Rs96.65 (7.99 per cent YTM) and closed
at Rs96.91 (7.94 per cent YTM), against Tuesday's Rs96.58
(8 per cent YTM).
The
8.07 per cent-10 year-2017 paper opened at Rs100.65
(7.97 per cent YTM) and closed at Rs101 (7.92 per cent
YTM), against Tuesday's Rs100.45 (8 per cent YTM).
Call
rates: Call rates slipped to 6.80-7 per cent against
the previous close of 7.80-7.90 per cent. Reverse repo:
In the first one-day reverse repo auction RBI received
and accepted one bid for Rs25 crore while in the first
one-day repo auction RBI received and accepted eight bids
for Rs1,470 crore. In the second one-day reverse repo
auction RBI received and accepted six bids for Rs3,465
crore while there was no repo bids in the second one-day
auction.
CBLO:
The CBLO market saw 541 trades aggregating to Rs27,213.25
crore in the 7.50-7.50 per cent range.
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SEBI
removes ban on Centurion Bank of Punjab for DP operations
Mumbai: SEBI has removed the ban on Centurion Bank
of Punjab on opening of fresh demat accounts.
SEBI
had issued certain interim directions against various
market participants, in an order dated April 27, 2006,
including Centurion Bank of Punjab Ltd, a Depository Participant
of Central Depository Services Ltd, for failing to adhere
to the "know your client" norms while opening
demat accounts, which led to cornering of the retail segment
in initial public offerings.
SEBI's
Whole-Time Member, T.C. Nair said in an order that more
than nine months have elapsed since Centurion Bank of
Punjab has been restrained from opening of new demat accounts.
It is seen from the submissions of CBoP that pursuant
to the ex-parte order, it had taken necessary steps in
closing certain accounts and action against the concerned
persons/branches responsible for the lapses.
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Norms
for doorstep banking laid out
Mumbai: Doorstep banking services will now be available
as the Reserve Bank of India has issued guidelines for
banks on "Doorstep Banking." It has also allowed
banks to either deploy their employees or hire agents
to extend these services.
Thus
individual customers can have cash and other bank instruments
picked up from their home or office while only demand
drafts will be delivered. Corporate customers can additionally
have cash delivered against cheque received at the bank's
counter.
The
new guidelines allow banks to extend cash delivery services
to corporate clients, public sector units and departments
of Central and state governments against the receipt of
cheque at the branch, and not based on telephonic requests.
Individual customers cannot, however, avail of this facility.
Similarly,
the delivery of demand drafts for both individual and
corporate customers will be done by debiting the account
on the basis of requisition in writing or cheque received
and not against cash collected at the doorstep.
The
RBI has also cautioned banks about risks arising out of
these services and asked them to prescribe cash limits.
According
to the guidelines, banks have been asked to acknowledge
cash collection by issuing receipts and ensuring that
it is credited to the customer's account on the same day
or the next working day.
The
charges for these services would have to be prominently
indicated on brochures.
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General
insurers cut fire cover premium rates
Coimbatore: The public sector companies operating
in the general insurance space have cut fire premium rates
by 30-40 per cent in the last one-and-a-half months. Industry
men said the sharp reduction in the premium from a profitable
portfolio could affect the bottomline of the companies
but the impact of this premium war would be known only
after April 1, 2007. Besides fire, some of the Government-owned
units in the general insurance space have also cut motor
vehicle premiums. Industry sources said that the private
sector companies would not be able to bear the backlash
of this aggressive undercutting of rates.
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Sangli
Bank merger with ICICI to go ahead
New Delhi: The merger of Maharashtra-based Sangli
Bank with private sector banking giant ICICI Bank has
got the go ahead, as minority shareholders of the ailing
bank have withdrawn a petition alleging fraud and mismanagement.
With
withdrawal of the suit, the ball is now in the court of
banking regulator Reserve Bank of India, which has the
final authority to decide on the merger of banks.
Simultaneously,
after the vacation of the stay, the merger resolution
passed by the ailing lender's shareholders on January
15 would come into effect.
The
shareholders in an EGM held on January 15 passed the merger
resolution with about 84 per cent majority. The EGM was
held under the supervision of an observer appointed by
CLB and outcome of this meeting was subject to its final
order.
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