Bonds rally
Bangalore: Bonds rallied during the week as liquidity surged and deposits increased in the banking system before the year end.

Traders though were not sure of the sustainability of the current rally largely in view of the international situation of firm oil prices and the stand-off between the US and Iran.

FIIs have been sellers in the equity markets and domestic institutions and funds have begun moving to support the equity markets by selling their excess stocks of Government securities.

Forward premia remained soft and the 3 to 12 months forwards premia was between 3.5 per cent and 2.98 per cent.

Traders said that some of the exporters and foreign direct investors were taking forward cover ahead of their inward remittances.

But at the short-end, one month, forward premia remained firm at 4.5 per cent. This was largely on account of interventions by the RBI in the forward market and swaps by foreign banks for meeting their rupee liquidity and reserve ratio requirements.

The markets remained high on liquidity largely on account of the reserve money expansion, inward remittances by non-resident investors and deposit build-up. The liquidity was evident from the week-end liquidity adjustment facility auctions.
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Grameen Bank units to be set up in 80 districts: FM
Sivaganga: The Union Government will open Gramin Bank branches in 80 districts and will take steps to integrate and organize the existing ones, Finance Minister P Chidambaram said while inaugurating the Pandian Grameen Bank's(PGB) Grammeen Tatkal Lending Scheme at Pallathur in the district.

The new branches will be opened in the districts, which do not have such banks at present, he said. The existing 99 Gramin Banks in the country would be organised to ensure that their branches functioned across the country, he said. The strengthening of Grameen Banks was among the 'big schemes' of the government for the current fiscal.

The FM said the objective of the government was to help more villagers, including illiterates, open bank accounts and avail loans for agriculture and business.
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