Rupee gains slightly
Mumbai: The rupee, which is trading at a eight-year high mark, strengthened marginally on Monday to close at 42.91 against the dollar. The rupee opened at 42.92, saw an intra-day high of 42.75 before closing at 42.91 against Thursday's close of 42.93.

Market participants expect the rupee to trade in the range of 42.80 - 43.20. In forwards, 6-month premia closed at 5.13 per cent (5.41) and 12-month closed at 4.08 per cent (4.27).

Bonds: Bond prices rose by about 53 paise (yields fell by almost eight basis points) on improved liquidity in the banking system. Banks placed over Rs9,000 crore with the RBI through the reverse-repo window while the central bank accepted Rs3,000 crore.

Volumes traded on the NDS-order matching system were at Rs4,655 crore (Rs3,070 crore).

G-secs: The 8.07 per cent - 10 year-2017 paper opened at Rs99.10 (8.21 per cent YTM) and closed at Rs99.68 (8.12 per cent YTM) against the previous close of Rs99.15 (8.20 per cent YTM) on Thursday.

Call rates: Call rates closed at 6.75-7 per cent on Monday against Thursday's close at 7-7.25 per cent.

Reverse repo: In the first one-day reverse repo auction, the RBI received six bids for Rs3,370 crore while it accepted Rs2,000 crore. In the first one-day repo auction, RBI received and accepted two bids for Rs760 crore. In the second one-day reverse repo auction, RBI received 15 bids for Rs5,745 crore, of which it accepted Rs1,000 crore. There was no repo auction.

CBLO: The CBLO market saw 452 trades aggregating Rs23,934.65 crore in the 3.50 per cent-6.07 per cent range.
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Oriental Bank may issue bonds
New Delhi: Oriental Bank of Commerce may raise up to Rs500 crore capital during the first quarter of the current financial year through Tier-II capital. OBC has already obtained AAA rating from ICRA and CARE for the lower Tier-II bond offering, which is likely to be done on a private placement basis.
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Allahabad Bank credit growth up 41 pc
Mumbai: Allahabad Bank's credit portfolio rose 41 per cent in 2006-07, which helped to reduce its gross non-performing assets (NPAs).

The bank's credit book increased to Rs42,380 crore at the end of March 2007, with both retail and corporate borrowings contributing to the growth. Gross NPAs slipped to 2.60 per cent from 3.90 per cent a year ago. Total credit of the banking sector increased 29 per cent year-on-year as on March 16, 2007.
The bank has also raised its prime lending rate (PLR) by 75 basis points to 13.25 per cent but has spared housing loans up to Rs 10 lakh from this increase.

Allahabad Bank's deposits rose 22.77 per cent to Rs59,545 crore from Rs48,500 crore. Low-cost deposits - current and savings account (CASA) - rose 16-17 per cent. CASA constituted 37 per cent of total deposits.

The bank also raised interest rates on term deposits on more than one occasion in the financial year. The cost of funds moved up to 5.70 per cent (5.01 per cent).
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