Banks have agreed to extend financial help to small and medium enterprises (SME) and exporters in the wake of tight liquidity conditions, following the international credit crunch. The Indian Bank’s Association (IBA) discussed the problems of SMEs and hinted to increase the credit limit and ease loan repayment norms without any penalty. 

The SMEs and export organizations demanded increase in lending limit from Rs 75 crore against stocks of Rs 100 crore to Rs 85 crore against the inventory. The members of SMEs said that the customers are not repaying them as per stipulated conditions and hence the repayments are getting delayed.

The HDFC Bank has plans to upgrade its existing automated teller machine network across the country by using the 'Aptra eMarketing' software, powered by the NCR Corporation .This facility will enable faster transactions and personalized messages through direct banking channels such as ATMs, Internet banking and phone banking.

The largest state run bank, State Bank of India, today signed an agreement with Insurance Australia Group (IAG) to expand its network in insurance sector. It would set 74:26 joint ventures with AIG for general insurance business in the country. The bank would soon approach the Insurance Regulatory & Development Authority to get necessary approval for joint venture. It has already got administrative approval to forge a JV with Societe Generale for the custodial business.

Indian banking franchise of Citi bank has taken a sense of relief, following bail out package announced by the US government. It would help the bank to come out of credit crisis and help to recover its strong market position. The bank’s local workforce is still living under threats of lay-offs but now it can expect some thing better in future.

New Delhi, Nov. 25: The Reserve Bank of India (RBI) is expected to announce a financing package for the Micro, Small and Medium Enterprises (MSMEs), as the sector has been facing credit crunch due to delay in payments and unwillingness on the part of Banks towards offering loans in the backdrop of current global financial scenario, said Dinesh Rai, Secretary, Ministry of MSME, Government of India.

With Citigroup's stock plummeting last week, over fears about its exposure to toxic mortgage assets, regulators are reportedly working on plan to bail out the embattled bank, saying the US government would guarantee more than $300 billion in company assets, while injecting an additional $20 billion in capital. In return for the cash infusion, the government would get an additional ownership stake of $7 billion in Citigroup.