The liquidity crunch can increase due to high demand of cash for Dussera and the auction of government securities worth Rs 17,000-crore. The banks have already cut the lending and MFs are interested to access overnight funds from RBI like the other banks. 

Various funds houses also discussed the situation and met with the deputy governors of the Reserve Bank.

A CEO of a leading fund house said that fund houses should be allowed to raise money through repo transactions with banks and financial institutions. 

Investment Information Credit Rating Agency ICRA Limited (ICRA) has signed a Memorandum of Understanding (MoU) with Karnataka Bank Ltd. 

Under the arrangement, ICRA will assign ratings to the Bank's loans and its other exposures under the standardized approach of RBI's New Capital Adequacy Framework for Basel-II.

ICRA's ratings for the standardized approach would be carried out under its "Line of Credit rating service and would enable Vijaya Bank to assign the new risk weights applicable to its borrowers under Basel-II

ICICI Bank, India’s second largest lender, in association with Dish TV, India’s first direct to home(DTH) entertainment service provider has launched Interactive Banking Service “ICICI ACTIVE”. 

The latest move will facilitate Dish TV viewers to access information on ICICI Bank products and services, from the convenience of their homes. 

Through latest launched customer friendly service, Dish TV viewers will be able to get information about different types of ICICI Bank accounts and deposits that suits their need. 

London - Slumping banking shares gave the Financial Times Index a roller-coaster ride on the London stock market Tuesday where early gains all but evaporated as pressure grew on the government to agree on a cash bail-out package for leading banks.

The FTSE-Index was up by 1.7 per cent, or 76 points, to 4,665.2 points at lunchtime, after surging ahead by almost 3 per cent in early morning trading.

Riga  - The Governor of the Bank of Latvia, Ilmars Rimsevics, called on the Latvian government to be "strategic and resolute" Tuesday, in order to speed the country's aim of adopting the euro as its currency.

Speaking to an audience of bankers and businessmen in the Latvian capital, Riga, Rimsevics bemoaned the fact that rapid economic growth in recent years had created a situation in which "many seemed to succumb to the euphoria of the moment, forgetting our long term commitments and strategic goals."

Latvia originally intended to replace its lats with the euro in 2008 but narrowly failed to meet the necessary Maastricht convergence criteria on inflation, which subsequently soared.

Frankfurt - The European Central Bank (ECB) on Tuesday provided 250 billion euros (338 billion dollars) to commercial banks in a regular one-week loan at an interest rate of 4.99 per cent.