Berlin - Commerzbank Chief Executive Martin Blessing has defended the price Germany's second-largest bank paid to take over rival Dresdner in an interview published by Der Spiegel news magazine on Saturday.

Blessing described the 9.8 billion euros (14.4 billion dollars) paid to insurer Allianz as "not cheap but fair" highlighting the fact that much of the deal had been done with Commerzbank shares.

In addition, the new bank aimed to realize synergies worth 5 billion euros, he said.

On Thursday, report on Currency and Finance by Apex bank was released, which revealed that banks would need Rs 5,70,000 crore to finance their expansion in the next five years. The public sector would require two thirds of capital that comes up to Rs 3,70,000 crore.Thus on Thursday, Reserve Bank of India (RBI) informed that 20 public sector banks will experience an adverse effect on their growth, since Govt. holds a majority stake in these banks.

The Reserve Bank of India maintained that the hike in the salaries of the government employees will put burden on the finance of the union government.

The government has cleared the recommendations of the sixth pay commission recently that cause increase in the salaries of the employees by 21 per cent.

RBI said that the subsidies and farmer loan waiver have also pressurized the state finance. The central bank indicted that it would continue to tighten the monetary policy despite some ease in the inflation rate.

Washington - The US government was preparing to take over and bailout the twin mortgage finance giants Fannie Mae and Freddie Mac, according to a New York Times report late Friday that cited officials and company executives who have been briefed on the plan.

The two companies would be placed in a conservatorship, the Times reported. Such a move would be the newest shock to US finance markets as the country struggles with soaring mortgage foreclosures that have undermined the US economy.

Small and medium exporters alleged that some leading banks are implicating them to sell their forex derivatives.

Forex derivative are concerned with a financial contract bought by firms or individual to cover the risks due to the appreciation in rupee.

The leading banks like ICICI Bank, HDFC Bank, State bank of India, ABN Amro and others banks are accused for such tapering.

Karachi - Pakistan's central bank on Thursday said it was working closely with the government to restore economic stability amid rising rumours that the country might default soon on loans from its international creditors.

"The federal government and the central bank are working in tandem to restore macroeconomic stability," Shamshad Akhter, the governor of State Bank of Pakistan, said in an unscheduled statement.

Akhter blamed the prolonged political instability and rising international fuel and commodities prices for the country's financial difficulties.