Rupee gains
Mumbai: The rupee moved up by around 9 paise against the dollar to close at 41.67/68 on Monday against the previous close of 41.76/77. It opened at 41.67, saw an intra-day high of 41.58 (which was also a nine-year high) before closing at 41.67/68.

Market participants expect the rupee to appreciate further to 41.50.

In forwards, the six-month premia closed at 6.70 per cent (6.49 per cent) while the 12-month ended at 5.02 per cent (4.91 per cent).

Bonds: Bond prices fell by about 25 paise (yields rose by two-three basis points) on nervousness over the RBI's credit policy on Tuesday.

The 8.07 per cent-10 year-2017 paper opened at Rs99.90 (8.08 per cent YTM) and closed at Rs99.76 per cent (8.10 per cent YTM) against Rs100.02 (8.06 per cent YTM) on Friday.

The 7.38 per cent-8 year 2015 paper opened at Rs95.60 (8.12 per cent YTM) and closed at Rs95.41 (8.15 per cent YTM) against previous close of Rs95.47 (8.13 per cent YTM) on Friday.

Call rates: Call rates closed at 9-9.25 per cent on Monday against the previous close of 9.50-10 per cent.

Reverse repo: In the first one-day reverse repo auction, the RBI received and accepted two bids for Rs120 crore. In the first one-day repo auction, the RBI received and accepted 13 bids for Rs5,200 crore. In the second one-day reverse repo auction, it received and accepted two bids for Rs115 crore. In the second one-day repo auction, it received and accepted 15 bids for Rs4,790 crore.

CBLO: The CBLO market saw 387 trades aggregating Rs19,302.60 crore in the 7.40 - 8.90 per cent range.
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South Indian Bank Q4 net up 38 per cent at Rs22.5 crore
Mumbai: South Indian Bank has reported a 38 per cent rise in net profit to Rs22.5 crore in the fourth quarter of 2006-07 compared to Rs16.3 crore in the corresponding period of previous fiscal.

Net profit during the entire 2006-07 more than doubled to Rs104.12 crore from Rs50.90 crore in the previous fiscal.

Total income grew to Rs1,079.76 crore for the year ended March 31, up 29.52 per cent as compared to Rs833.59 crore in 2005-06, South Indian Bank informed the BSE.
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Central Bank receives nod for IPO
Mumbai: Central Bank of India plans to come out with an initial public offering by June this year. The bank will issue 80 million shares with a face value of Rs10 each.

According to Ms H.A. Daruwalla, chairperson and managing director, Central Bank of India, the Government holding after the IPO will come down to about 80 per cent from 100 per cent.

The lead bank managers for the issue will be ICICI Securities, IDBI Capital Market Services and Enam Securities among others. Premium will be decided by lead bank managers. The bank will soon file its red herring prospectus with the SEBI.

The bank has posted a 93.77 per cent growth in net profit to Rs498 crore for the year ended March 31, 2007 against Rs257 crore for the corresponding period last year.
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RBI: Indian economy to grow by 9.2 per cent
Mumbai: The Indian economy is expected to expand by an accelerated 9.2 per cent in 2006-07 as against 9 per cent in the previous fiscal according to the Reserve Bank of India in its macro-economic and monetary developments review-2006-07 released Monday. .

The acceleration in growth during 2006-07 was driven by continued momentum in the services and manufacturing sectors, growth of which are expected to be in double-digit figures, the RBI said Agriculture and allied activities growth, however, slowed down from 6 per cent in 2005-06 to 2.7 per cent in 2006-07.

The uneven and delayed rainfall during the south-west monsoon season led to a reduction of 1.9 per cent in the area of coverage in the kharif crops in 2006 season, mainly in the production of rice, coarse cereals and oilseeds.

But favourable soil moisture conditions and remunerative open market and support prices led to an increase of 2.1 per cent in the area sown under rabi crops, the RBI said.

As a result, foodgrain production is likely to 211.8 million tonnes, an increase of 1.5 per cent over the previous year.

The shortfall in the case of rice and coarse cereals would be offset by higher production of wheat and pulses, it said. Among the non-food grain, sugarcane and cotton are expected to scale new peaks in 2006-07.

The production of oilseeds is, however, expected to be lower on account of decline in acreage.
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