Karur Vysya Bank (KVB) has informed that it has signed a memorandum of understanding (MoU) with SME Rating Agency of India
(Smera) to enable its SME Borrowers to get rated themselves.

Under the arrangement, Smera will provide data about external credit rating by considering the financial position and qualitative factors that have a bearing on the credit worthiness of the SME and Karur Vysya Bank will finance the SME.

According to sources, the MoU plans a co-operation between the two institutions for financing of SME by leveraging the strengths of both the organisations.

Punjab National Bank, a leading public sector lender, has decided to reduce the Benchmark Prime Lending Rate (BPLR) by 50 bps from 14% to 13.50% w. e. f. November 01, 2008.

The bank stated in the release that the revised BPLR shall be applicable in respect of all existing and new accounts linked with BPLR where rates are charged at BPLR and above.

In addition, the interest rates on Housing Loans, Car Loans and Education Loans which were reduced w. e. f October 16, 2008 as a part of festival bonanza will continue at the reduced rates.

London - Britain's Barclays bank said in London Friday it plans to raise some 7.3 billion pounds (11.8 billion dollars) in fresh capital from investors, mostly from the Middle East, thereby avoiding a cash hand-out from the British government.

The investments would mostly come from state funds in the Gulf state of Qatar and the royal family of Abu Dhabi, but also from existing shareholders and institutional investors.

The investors would own 32 per cent of the bank after the capital injection.

Barclays said the move fulfilled the British government's strict regulations for raising capital.

Reykjavik - Cash-strapped Iceland was set to allow its currency to float as soon as the country secures new loans, Prime Minister Geir Haarde said Thursday in parliament.

Haarde further said the cost of the collapse of the North Atlantic nation's banks may total the equivalent of some 9.4 billion dollars or "85 per cent of GDP" last year.

A week ago, Reykjavik signed a 2.1-billion-dollar emergency loan with the International Monetary Fund to help stabilize Iceland's economy.

State Bank of Bikaner and Jaipur, the largest associate lender of SBI, has increased the fixed deposit rates by 100 basis points to 10.75 per cent.

The bank stated in an official communiqué that for fixed deposits in between 2-3 years, the rate has been increased from 9.75 per cent to 10.75 per cent. However, the bank has kept interest rates for other maturities unchanged at the September 3 level when it last raised rates.

Last month, SBBJ raised the interest rate on term deposit in between 1-2 years by 50 basis points to 10.25 per cent.

SBI Mutual Fund (SBI MF), one of the largest mutual funds in the country has introduced ‘SBI Debt Fund Series -90 Days Fund-31’ in Indian market.

The fund is a close ended equity scheme with primary objective to provide regular income, liquidity and returns to the investors through investments in a portfolio comprising debt instruments such as government securities, AAA/AA+ bonds and money market instruments.

The fund is open for subscription from October 31, 2008 till November 3, 2008.

The Scheme will offer Growth Option and Dividend Option.