Reykjavik  - Iceland's central bank on Tuesday said it would hike its key interest rate from 12 to 18 per cent, after cutting the rates in mid-October.

The central bank, or Sedlabanki, had cut the rates from 15.5 per cent to 12 per cent on October 15.

Cash-strapped Iceland on Friday said it had signed a deal with the International Monetary Fund (IMF) for a 2.1-billion-dollar emergency loan to help stabilize Iceland's economy.

The IMF board has yet to approve the agreement.

Iceland has been hit by the global credit crunch that has seen the collapse of its three largest commercial banks.

With the aim to support the economy in the times of financial crisis, a set of recommendations, including further cut in key interest rates were planned on Sunday by the leading industry body, the Confederation of Indian Industry (CII). 

A statement issued by the chamber said, "It is necessary to further reduce repo rate by at least 50 basis points and in CRR (cash reserve ratio) by 150 bps to ensure adequate liquidity and reasonable cost of funding."

Stockholm - Swedish banking group Swedbank on Monday said it planned to raise 12.4 billion kronor (1.51 billion dollars) by issuing new shares.

Swedbank is one of Sweden's four major banking groups. In recent weeks, Swedbank has been in the sights of analysts over its presence in the Baltic region where economic growth has slowed to standstill and fears of loan losses have increased.

According to the bank, existing shareholders including insurance and savings group Folksam, savings bank foundations, over 60 savings banks, as well as the Swedish national pension funds AP1 and AP2 had underwritten 100 per cent of the issue.

The new issue was pending approval at an extraordinary general meeting due November 25.

State Bank of India (SBI), India's largest commercial bank has signed a Joint Venture pact with Macquarie Group and International Finance Corporation (IFC).

Under the arrangement, both foreign partners will help the lender in the set up and management of an Infrastructure Private Equity Fund for investing in Indian Infrastructure projects and Companies. 

However, the fund will be operational on receipt of requisite regulatory approvals. The JV agreement is based on the earlier MOU signed on April 16, 2008.