The Hindu Business Line : Friday, July 07, 2006

INSIGHT
Dollarisation of rupee — Convertibility and issues of currency substitution
The Second Tarapore Committee is to study the implications of dollarisation of domestic assets and liabilities and internationalisation of the rupee. But A. SESHAN wonders if the Government should invite trouble by going into these areas by introduci ng fuller CAC now, when the economy is having an easy time in the external sector. More

FOREX
Rupee dips further
The rupee dropped further to touch 46.15/16 on account of heavy demand for dollars from oil companies. It opened at 46.16/18 against the dollar and moved within the range of 46.11-46.16, intra-day, to finally close at 46.15/16. ... More

INFORMATION TECHNOLOGY
Worth the wait
A SCENE outside an ATM counter in Hyderabad. With the growing popularity of ATMs, people are getting used to waiting in long queues to withdraw money. ... More

SOFTWARE
Sierra Atlantic plans expansion
Sierra Atlantic, a technology solutions provider, on Thursday announced the expansion of their financial service group. As part of their expansion, Sierra Atlantic will strengthen their financial services offerings in the areas ... More

NBFCS
Magma Leasing to raise Rs 122 cr through pvt placement
UK, US companies to pick up stake More

LIFE INSURANCE
LIC drive to hold back maturity proceeds
LIC has launched a drive to retain the money that is moving out of its fold by way of maturity of policies or settlement of claims. The company has earmarked a few select products that may be used to hold back maturity or claim ... More

GENERAL INSURANCE
Mumbai rains dampen insurers' spirits again
Claims trickling in; clear picture of damage to be known in next few days More

CREDIT RATING
A1+ for SBM's deposit programme
Rating agency ICRA has assigned an A1+ rating to the Rs 2,000-crore certificate of deposit (CD) programme of State Bank of Mysore (SBM). ICRA also has an assigned outstanding LAAA (L triple A) for the various tier-II bond ... More

DEBT MARKET
Bond dips on rate hike, inflation fears
Bond prices were down following fears of a likely increase in interest rates and upward movement in inflation as international oil prices rose to $75 per barrel, said dealers. Bond prices opened about 5-10 paise lower as US ... More

RBI & OTHER CENTRAL BANKS
Liquidity comfortable, oil prices a concern: RBI
The Reserve Bank of India on Thursday said that `oil prices' are an international concern. In an informal meeting with journalists at the end of the meeting of the newly-reconstituted board of RBI, the Deputy Governor, Dr Rakesh Mohan, said that ... More

PRIVATE BANKS
ICICI Bank plans new-age ATMs for rural markets
ICICI Bank proposes to modify the technology behind ATMs that determines how the money-dispensing machine works. A project taken up in association with IIT, Chennai is looking at ways of dealing with a host of critical issues that may seem pretty ... More

Karnataka Bank to up FII limit to 49%
The 82nd annual general meeting of the shareholders of Karnataka Bank Ltd here on Thursday adopted a resolution to increase the foreign institutions investment limit in the bank from the present 24 per cent to 49 per cent. Though a majority of ... More

PUBLIC SECTOR BANKS
Bank of India to raise Rs 1,750 crore
To bolster capital base More

GOVT BONDS
RBI reduces G-Sec auction amount
The Reserve Bank of India has reduced the amount of the government securities to be held on July 11 to Rs 7,000 crore from the scheduled amount of Rs 10,000 crore. In a press release issued on Thursday, RBI announced the sale of ... More

CREDIT MARKET
SBI credit deployment in Bengal to rise by Rs 8,500 cr
The bank has already deployed out-bound sales force not only to attract to deposits but also to promote various other schemes and loan products. To be made possible by rise in advances to big, mid-corporates More

SHORT TERM INSTRUMENTS
Call rates remain flat
Call rates remained unchanged between 5.75 and 5.85 per cent. In the first one-day reverse repo auction under LAF, the Reserve Bank of India received and accepted 39 bids amounting to Rs 41,800 crore and in the second one-day ... More

BONUS ANNOUNCEMENTS
LVB proposes bonus shares issue
The Karur-based Lakshmi Vilas Bank (LVB) has decided to issue bonus shares in 1:2 ratio and offer one equity share (of Rs 10 each) for cash at a premium of Rs 40 per share (i.e. at a price of Rs 50 per share) as rights share in ... More

BOOKS
Insights into Harshad Mehta scam
An autobiography of former Chairman of State Bank of India (SBI), Mr P.G. Kakodkar, is likely to offer rare insights into various dramatic incidents in the history of the SBI such as the Nagarwala case, the pressures on the Bank ... More