Public sector lender Punjab National Bank (PNB) has reduced their prime lending rate by 50 basis points, with effect from January 1.

The BPLR of PNB would now stand 12 per cent, from the existing 12.50 per cent.

In addition, PNB also announced a reduction in its peak deposit rate by 100 basis points to 8.5 per cent for deposits of one year to less than three years beginning New Year.

New York - A group of firms was nearing an agreement with US regulators to buy the failed lender IndyMac, US media reported on Monday.

JC Flowers & Co, Dune Capital Management and Paulson & Co, a group of private-equity and hedge-fund investors, were in talks with the Federal Deposit Insurance Corp and an announcement was expected later this week, Bloomberg news reported.

India’s second largest private bank, HDFC Bank said that, on Friday, it has raised Rs 1,728 crore through the private issue of subordinated debt.

On a private placement basis, the bank has issued unsecured non-convertible redeemable subordinated bonds in the nature of debentures.

The Bank sold upper Tier II bonds for an amount of Rs 578 crore and issued lower Tier II bonds raising an amount of Rs 1,150 crore.

HDFC Bank provides a wide range of services in treasury, wholesale banking, and retail banking.

Cholamandalam DBS is planning to raise Rs 300 crore by subscribing 10 million convertible shares of EID Parry, Coromandel Fertilizer Ltd. & DBS Bank. The shares would have the face value of Rs 100 and these would be converted into liquid stake within 18 months as per filing by the company to the stock exchange.

Major public sector banks such as Bank of India, Bank of Baroda and Canara Bank have decided to lower their prime lending rate (PLR), following the State Bank of India's (SBI) decision to cut PLR. The PLR would be cut to 12.5% from 13.25% by these three banks and the new lending rates will be effective from January 1, 2009.

It should also be noted that the reduction in rate will also benefit banks' existing education loan, auto loan and home loan borrowers. Furthermore, the deposits rates will also be lowered by the banks from January by 50-100 basis points.

K.V. Kamath, managing director and CEO, ICICI Bank, will hand over charge to joint managing director and chief financial officer Chanda Kochhar, in what is being seen as a smooth change of guard in the country's largest private sector bank.

The change will be with effect from April 30, 2009.

Kamath will take over as the non-executive chairman of the board from N.Vaghul, who is designated to retire on April 30, next year.