The Hindu Business Line : Friday, June 02, 2006

INSIGHT
Raising the networthiness of Indian banking
The banking sector is today relatively much stronger than its Asian counterparts but it still has a long way to go. More

FOREX
Rupee volatile; ends unchanged
Tracking the domestic equity market, the spot rupee was volatile against the dollar on Thursday. The domestic currency moved in a 25 paise range before ending trade, unchanged from previous close. On Thursday, it opened lower at ... More

GENERAL INSURANCE
Tata AIG liability cover for unlisted cos
Tata AIG General Insurance Company Ltd(Tata AIG General) on Thursday launched `Highlight,' a liability insurance cover for directors and officers of unlisted small and mid-sized businesses. Small and medium companies and family-owned concerns ... More

RBI & OTHER CENTRAL BANKS
RBI exempted from service tax
The Centre has exempted the Reserve Bank of India (RBI) from payimg service tax on any taxable services provided by the central bank. Moreover, service tax exemption has also been given for all taxable services provided to the RBI, for which ... More

PRIVATE BANKS
SIB opens Kadavanthra branch
The South Indian Bank opened its Kadavanthra branch in Kochi on Thursday, in the presence of the Chairman and Chief Executive Officer, Dr V.A. Joseph. This will be the 348th branch with core banking solutions. The branch network, ... More

Centurion Bank fined for KYC norms violation
The Reserve Bank of India today imposed a penalty of Rs 15 lakh on Centurion Bank of Punjab for violation of know your customer (KYC) norms and guidelines relating to IPO financing. An RBI release said that the bank had violated KYC norms ... More

PUBLIC SECTOR BANKS
Vijaya Bank pays dividend to Govt
Vijaya Bank has paid a dividend of Rs 23.35 crore to the Central Government for the financial year ended March 31,2006. The Chairman and Managing Director of the bank, Mr Prakash P. Mallya, handed over the dividend cheque to the Union Finance ... More

INTEREST RATES
5 banks hike NRE, FCNR deposit rates
State Bank of India, ICICI Bank, Dena Bank and Central Bank of India have increased interest rates on NRE and FCNR (B) deposits across all maturities with immediate effect. ICICI Bank has revised interest rates on one-year NRE fixed deposits ... More

GOVT BONDS
Bond market bearish
The bond market was bearish and prices dipped about five paise. According to dealers, sentiment is weak because of reports indicating that a hike in rates is likely. The weak stock market and volatile rupee is also impacting the ... More

SHORT TERM INSTRUMENTS
Call rates unchanged
Call rates remained unchanged between 5.5 and 5.6 per cent (5.5-5.6 per cent). In the first one day reverse repo auction under LAF, Reserve Bank of India received and accepted 38 bids amounting to Rs. 37, 995 crore and in the ... More

SECURITISATION
Mortgage-backed securitisation loses sheen
Most of the housing loans extended since the last few years were under 8 per cent. Securitisation of these instruments would imply very steep discounting of the papers, translating into losses. Tight liquidity, hardening rates may turn home loans costlier More

PEOPLE
Paterson is new MD for Aviva India
Aviva Life Insurance on Thursday announced the appointment of Mr Bert Paterson as Managing Director for its operations in India with effect from September 1. Mr Paterson will succeed Mr Stuart Purdy who is moving to Ireland as ... More

Cross Currency Rates