1. RBI purchased $2.3 bn in March, according to figures provided in the table on the sale/purchase of the US dollar by the RBI. It has purchased $26.8 bn during the fiscal ended March 2007. That would have released rupee currency equivalent to Rs 1,18,994 crs into the system. Forex reserves had risen by nearly $40 bn during the fiscal ended March 2007. The bulk of the purchases came in the month of February when the RBI bought nearly $12 bn.
2. Indian Bank has announced audited consolidated results of the bank and its three subsidiaries Indbank Merchant Banking Services Ltd, Indbank Housing Ltd and Indfund Management Ltd for the year ended March 31, 2007. The consolidated operating profit of the bank increased by 53.85% to Rs 1,386.15 crs against Rs 900.96 crs in the previous year. Consolidated net profit increased to Rs 810.03 crs for 2006-07, up 57.14% over the previous year's Rs 515.47 crs. Indbank Housing registered a net profit of Rs 25.21 crs, while Indbank Merchant Banking and Indfund Management registered profits of Rs 21.17 crs and Rs 2.50 crs, respectively.
3. Trading in securitised debt instruments or certificates on the country's stock exchanges may soon become a reality, with the Lok Sabha today passing a Bill that provides the legal framework for listing and trading of such instruments. The Securities Contracts (Regulation) Amendment Bill 2007 was passed by voice-vote without any discussion. This Bill, revised, also specifies that issuance of securitised debt instruments would be governed by `disclosure-based regulations' of SEBI as against the earlier planned approval-based approach.
4. In what will be another instance of an Indian fund house leveraging the strengths of its overseas partner, SBI Funds Management aims to work out a product for international investors that will be distributed abroad by Societe Generale (SG). SG, which holds 37% in the Indian asset management company, will be responsible for marketing the fund, which will be managed in India.
5. For borrowers worried about the Basel II regime, this should be music. Interest rates could actually come down for some classes of borrowers, especially those with high credit ratings. Bankers said that corporate ratings would now begin soon for all classes of borrowers above Rs 5 crs. Currently, only instruments are rated and migration to corporate ratings has begun, bankers said. RBI's draft guidelines prescribe a risk weight of 20% on corporates falling within the rating scale "AA", 50% on "A", 100% on "BBB" and 150% on "BB" and below.
6. Karnataka Bank Ltd has opened its fifth service branch at Mangalore.This is the first non-metro service branch of the bank. The service branch will help in providing quick inter-branch services.
7. SBI, India’s biggest lender, plans to raise Rs 15,000 crs within the current financial year to bolster capital and meet the growing credit demand. The funds will be raised through a mix of debt and equity. SBI is in discussions with six to seven investment bankers to decide the right mix and timing for raising the funds. The bank plans to raise as much as Rs 6,000 crs through share sale.
2. Indian Bank has announced audited consolidated results of the bank and its three subsidiaries Indbank Merchant Banking Services Ltd, Indbank Housing Ltd and Indfund Management Ltd for the year ended March 31, 2007. The consolidated operating profit of the bank increased by 53.85% to Rs 1,386.15 crs against Rs 900.96 crs in the previous year. Consolidated net profit increased to Rs 810.03 crs for 2006-07, up 57.14% over the previous year's Rs 515.47 crs. Indbank Housing registered a net profit of Rs 25.21 crs, while Indbank Merchant Banking and Indfund Management registered profits of Rs 21.17 crs and Rs 2.50 crs, respectively.
3. Trading in securitised debt instruments or certificates on the country's stock exchanges may soon become a reality, with the Lok Sabha today passing a Bill that provides the legal framework for listing and trading of such instruments. The Securities Contracts (Regulation) Amendment Bill 2007 was passed by voice-vote without any discussion. This Bill, revised, also specifies that issuance of securitised debt instruments would be governed by `disclosure-based regulations' of SEBI as against the earlier planned approval-based approach.
4. In what will be another instance of an Indian fund house leveraging the strengths of its overseas partner, SBI Funds Management aims to work out a product for international investors that will be distributed abroad by Societe Generale (SG). SG, which holds 37% in the Indian asset management company, will be responsible for marketing the fund, which will be managed in India.
5. For borrowers worried about the Basel II regime, this should be music. Interest rates could actually come down for some classes of borrowers, especially those with high credit ratings. Bankers said that corporate ratings would now begin soon for all classes of borrowers above Rs 5 crs. Currently, only instruments are rated and migration to corporate ratings has begun, bankers said. RBI's draft guidelines prescribe a risk weight of 20% on corporates falling within the rating scale "AA", 50% on "A", 100% on "BBB" and 150% on "BB" and below.
6. Karnataka Bank Ltd has opened its fifth service branch at Mangalore.This is the first non-metro service branch of the bank. The service branch will help in providing quick inter-branch services.
7. SBI, India’s biggest lender, plans to raise Rs 15,000 crs within the current financial year to bolster capital and meet the growing credit demand. The funds will be raised through a mix of debt and equity. SBI is in discussions with six to seven investment bankers to decide the right mix and timing for raising the funds. The bank plans to raise as much as Rs 6,000 crs through share sale.
