The banking institutions should give relief to borrowers and forward the complete benefit of the repo rates cuts carried out by the central bank (RBI) thus far.

In a gathering with some bank heads today, Dr. D. Subbarao, Governor, Reserve Bank of India, demanded banks to guarantee that customers are not put to any problem.

Mr. S.K. Goel, Chairman and Managing Director, UCO Bank, who attended the meeting, said that the conference did not talk about more cuts in key interest rates including CRR or SLR, but was called for a general economy appraisal.

At RBI meet, they say deposit rates may be cut in next one month

Reserve Bank of India governor D Subbarao on Thursday got bankers to admit they had scope to lower their deposit and lending rates on the basis of the monetary policy measures already taken by the central bank. He gave each of the eight bankers he met 10 minutes to speak on their game plan thus far on deposit and lending rates.

The meeting assumed significance on a day when economic growth for October-December quarter came in at a disappointing 5.3%, the lowest quarterly rise since 2003.

In a closed-door meeting with D Subbarao, the governor of the Reserve Bank of India, private sector banks promised that they will cut interest rates. Subbarao met with eight bankers, including ICICI Bank managing director and CEO KV Kamath and HSBC's India group general manager and CEO Naina Lal Kidwai.

UCO Bank chairman and managing director SK Goel, who was also attended the meeting, said private banks have promised that they will cut lending rates further. "The discussion was about giving relief to borrowers. To see that they are comfortable and not put to any inconvenience. Whatever is possible will be done on rates," he said.

New York  - The US government and Citigroup Inc have cut a deal on the government substantially increasing its stake in the ailing bank, the Treasury announced Friday.

Under the agreement, the government will own as much as 36 per cent of the bank's shares in exchange for better access to Treasury funds, which could help Citigroup avoid bankruptcy.

The part-nationalization of what was once the world's largest bank has fuelled speculation that more financial institutions could face a similar government takeover.

Berne  - Jean-Pierre Roth, chairman of the Swiss National Bank, said Friday he would retire at the end of the year, having served in the role since 2001. He named no successor.

Roth, who worked for the bank for three decades, will step down in midst of a global economic crisis, which has also hit Switzerland, particularly as it is an exporting nation and relies on a financial sector that makes up an estimated 12 per cent of GDP.

Many observers have commended Roth's monetary policy during the onset of the financial woes and as it turned into an economic crisis.

Kuala Lumpur - Leaders of developing Muslim nations agreed Friday to set up a regional seed bank as part of initiatives aimed at boosting agricultural production and averting a possible food crisis.

The agreement came as agriculture ministers and business officials from the Group of Eight developing Islamic countries, or D8, ended a two-day meeting in Kuala Lumpur.

Some of the main endeavours under their Kuala Lumpur Initiative were establishing a D8 Umbrella Seed Bank and enhancing joint-venture projects to build more fertilizer plants in member countries.