Primary dealer Securities Trading Corporation of India (STCI) has reported a 163 per cent jump in its net profit at Rs 206.56 crore in the year ended March 31, 2002, as against Rs 78.50 crore in the previous financial year.
The company posted a trading profit was Rs 194.35 crore as against only Rs 2.11 crore in the previous year.
STCI's aggregate turnover in the secondary market more than doubled to Rs 1,13,274 crore in FY 01-02 as against Rs 55,185 crore in FY 00-01. In the other fixed income business, the company logged a turnover of Rs 2057 crore (Rs 826 crore in the previous year).
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STCI chairman D Basu, said last year was an exceptionally good for the gilts market as the yield on the 10-year paper declined by about three per cent.
Though the first half of the current fiscal was not as good as the corresponding half last year (trading profit in H1 is 70 per cent of corresponding H1 last year), he pointed out that healthy forex inflows will impart greater stability to the call money market and this inturn will drive the gilts market.
With PDs being phased out of the call money market and a gradual discontinuance of RBI's liquidity adjustment facility, Basu said STCI was looking to diversify its sources of funds.
In this context he mentioned that the PD was looking to issue MIBOR-linked bonds aggregating around Rs 1,000 crore to augment its resources. In addition it was also actively examining the swap market whereby fixed rate money can be swapped with floating rate money.
On the issue of SBI, which has 13.13 per cent stake, exiting STCI, he said the bank has made its intentions known in this regard and SBI's seven associate banks, who together hold around four per cent stake in the PD, may also follow suit.
R V Joshi, managing director, STCI, pointed out that emphasis would be laid on increasing presence in the public sector/ corporate bond market.
He pointed out that the cost of funds, which averaged 7.12 per cent last year was 6.08 per cent in the first six months of the current financial year.