The rupee weakened to a two-week low on Monday, dropping for a fourth straight session, as dollar demand from oil firms and other importers weighed

Rupee weakens to near 2-week low

Business Standard

It is a saving avenue which works like the systematic investment plan of a mutual fund, wherein a particular amount of money is deducted from your account every month. You have to apply for a recurring deposit account and ask the bank to deduct the stipulated amount from your savings or current account every month. Your deposit can also be paid through internet banking. Almost all banks offer this scheme and you can invest as little as Rs 5 with public sector banks or, Rs 500 with private banks. The investment tenure ranges from a minimum of six months to a maximum of 10 years. The date of monthly instalments will depend on the date on which you open your account. If you started on June 1, 2011, your installments will be deducted on 1st of every month, thereafter. You will get a passbook which will contain a record of all the transactions. You can either have an individual account or apply jointly with any family member, even a minor.

What is a recurring deposit?

When you invest in a bank fixed deposit, you can easily get a loan against it without having to break it. This is similar to a personal loan. However, the loan is structured as an overdraft facility against your fixed deposits.

What is a loan against fixed deposits?

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, allows banks and financial institutions to auction properties (residential and commercial) when borrowers fail to repay their loans. It enables banks to reduce their non-performing assets (NPAs) by adopting measures for recovery or reconstruction.

What is the Sarfaesi Act?

The rupee today fell by 24 paise to 53.74 in early trade, continuing its downward march for the fourth straight session at the Interbank Foreign Exchange, due to continued dollar demand from importers.

Rupee down 24 paise at 53.74/dollar

Press Trust of India

The rupee is expected to weaken this week on the back of dollar demand from oil importers and the market is expecting the index of industrial production (IIP) for December to weaken further, resulting in outflows of foreign institutional investor (FII) money from domestic equities.IIP contracted to a four-month low of 0.1 per cent in November as the base effect turned adverse. â€œThe IIP may contract further due to which the rupee may weaken. FIIs will pull out from domestic markets if IIP contacts further,â€ said  S Srinivasaraghavan, executive vice president and head-treasury of Dhanlaxmi Bank. According to Srinivasaraghavan the rupee is expected to trade in the range of Rs 53.40-54.00 against the dollar this week.The rupee ended at Rs 53.51 on Friday compared with the previous close of Rs 53.22. The rupee weakened due to sustained dollar buying by foreign banks on behalf of oil importers.The wholesale orice index (WPI) inflation data for January

Rupee expected to weaken; bond yields seen falling

BS Reporter

The rupee fell the most in over a month on Friday. It closed at 53.50/51 a dollar versus its previous close of 53.22/23 and its biggest fall since January 4.Bonds snap fallsFederal bonds snapped two weeks of falls. The 10-year bond yield closed down four basis points at 7.84 per cent.

Rupee falls most in over a month

Reuters

Extending losses for the third straight session, the rupee today lost 28 paise to end at an over one-week low of 53.50, due to sustained dollar demand from importers amid sluggish local stocks

Rupee at over one-week low

The rupee today depreciated by 22 paise to 53.44 against the dollar in early trade on the Interbank Foreign Exchange on fresh demand for the US currency.

Rupee down 22 paise at 53.44/dollar

Government securities (G-sec) remained bullish on persistent demand from banks and companies. Their rally on Thursday was the highest as a lower-than-expected growth estimate for the current financial year ending March by the government and follow-on comments from the central bank chief boosted demand.The 8.20 per cent G-sec maturing in 2025 surged to Rs 101.98 from Rs 101.65 yesterday, while its yield moved down to 7.95 per cent from 7.99 per cent.The 8.33 per cent G-sec maturing in 2026 shot up to Rs 103.07 from Rs 102.76, while its yield declined by 7.95 per cent from 7.99 per cent. The 8.15 per cent G-sec maturing in 2022 also climbed to Rs 101.76 from Rs 101.57, while its yield eased to 7.88 per cent from 7.91 per cent.The 8.07 per cent G-sec maturing in 2017, the 8.97 per cent maturing in 2030 and the 8.19 per cent maturing in 2020 also quoted higher at Rs 100.70, Rs 108.50 and Rs 101.12, respectively.Call rates end lower

Bonds remain bullish on steady demand

Agencies

Sector-wise allocations in January 2013Software & services sector attracted the most investments, accounting for 33.33% of the total investments in terms of deal volume with an aggregate of $20.21 million. Healthcare equipment & services sector was second, attracting $29.64 million (13.33%) across six deals. (Click on graphic)

A Snapshot of pe activity & deals

Recently, we were asked â€œwhether it was time finally to get out of the 12-month holding on dollar?â€ Dollar did not move for 12 months. There was another query regarding gold, â€œShould I sell it?â€ Two synchronous sell queries linked with two essential and interconnected assets was not a coincidence. The emotional disturbance of holding on to an asset that is sleeping can be frustrating. But this is where counter intuitive thinking should come in. â€œIf I have lost my patience with a certain asset, is this a sign for a potential reversal?â€What more do these two sleeping assets (stagnant performance) tell us? They tell us not only about their state but also about their inter-market connection. Dollar strengthens, gold weakens, and vice versa. Here, both are sleeping. No asset can sleep for long. Dollar and gold are significant assets. Expecting them to keep sleeping is an illusion. Now, whether one will break upwards and the other down is also cause and effect. We are

The sleeping gold

Banksâ€™ provisioning requirements for restructured loans, classified as standard assets, will have to be increased, but the timing of such a move could be reconsidered, Reserve Bank of India Deputy Governor Anand Sinha said on Monday.

Raise banks' provisioning to recast loans: Sinha

The year-end holiday spirit will certainly be missing this year at the Reserve Bank of Indiaâ€™s (RBIâ€™s) headquarters on Mint Road. For Finance Minister P Chidambaram has just taken away the RBIâ€™s last reason to delay the final guidelines for new banking licences.

The banking win-win

Interview with Director and Chief Executive, LIC Housing Finance Company LtdLIC Housing Finance Company Limited, one of the largest housing finance companies in India, is eyeing a consistent growth despite a tepid demand for home loans. V K Sharma, director and chief executive of the housing finance major, in an interview with Komal Amit Gera, unfolded the companyâ€™s strategy to hold on to its market share despite the stiff competition. Edited excerpts:The Reserve Bank of India has cut the repo rate by 25 basis points. Are the borrowers of LIC Housing Finance going to benefit from this?Our assest-liability management committee will review this. On the basis of its recommendation, we would pass on the margin to our customers.What is the growth target of LICHFL for the year 2012-13?We expect to grow at the rate of 20 per cent in the current financial year. Our target is to register a total business of Rs 25,000

Will perform but not in a race for market share: V K Sharma

L&T Finance, which acquired two lending companies in the current financial year, plans to become a comprehensive financial services company.

We can easily compete with banks in retail space: Dinanath Dubhashi

It seems there is no easy way to tackle the countryâ€™s fixation with gold. Large-scale investment in gold by individuals is the result of a confluence of diverse factors. One of the long-term solutions to this problem is to have a â€œbenign inflation regimeâ€, which needs to supplemented with both demand reduction and supply management measures, in addition to promoting alternative asset class of similar returns. This was the key message of the Reserve Bank of Indiaâ€™s (RBI) working group appointed to look into the issues of gold import and gold loan NBFCs (non-banking finance companies).â€œIndiansâ€™ obsession for large investment in physical gold is the outcome of the confluence of numerous and divergent factors. A holistic strategy that deploys a combination of demand reduction measures, supply management measures and measures to increase monetisation of idle gold stocks needs to be put in place,â€ said the working groupâ€™s report, released by RBI on Wednesday.

Benign inflation key to curbing gold demand

The rupee strengthened by 4 paise to Rs 53.12 a dollar in early trade on the Interbank Foreign Exchange on fresh selling of the American currency by exporters and banks.

Rupee gains 4 paise at 53.12/dollar

The rupee on Wednesday slipped from a four-month high level to close three paise down at 53.17 due to fag-end dollar demand from oil importers and strengthening of the US currency against the euro.Forex dealers said, however, sustained foreign fund flows capped rupeeâ€™s fall to some extent.The domestic currency commenced the day strong at 52.96 from yesterdayâ€™s close, when it had hit an over three-and-a- half-month high of 53.13.At the Interbank Foreign Exchange market, it hovered in a narrow range of 52.89-53.26, before settling down at 53.13, a loss of three paise, or 0.06 per cent.Bonds remain upGovernment securities (G-sec) surged on sustained buying from banks and companies. The 8.20 per cent G-sec maturing in 2025 shot up to Rs 101.65 from Rs 101.52 yesterday, while its yield edged down to 7.99 per cent from 8.01 per cent.Call rates end higherCall money rates also ended higher at the overnigh

Re down 3 paise on $ demand from oil cos

Both banks and non-banking finance companies (NBFCs) have got a breather in the Mid-Term Credit Policy. 



Priority quota relief for banks, NBFCs

In regard to institutions, there is need to clearly differentiate functions of owner, regulator, financial intermediary and market participant, to replace the joint-family approach that is a legacy of

Reddy on record

Financial Analysis: Find the Latest Financial News Analysis & Research Updates from all top sources for the Indian Finance industry on Business Standard.

Finance News Analysis, Financial Analysis and Research | Business Standard

Find the Latest Financial News Analysis & Research Updates from all top sources for the Indian Finance industry on Business Standard.

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