Washington - In another surprise development in the takeover race for the fourth-largest US bank, a New York state court judge granted an order Saturday night extending Citigroup's "exclusivity agreement" with Wachovia Corp.

On September 29, Citigroup announced it would acquire Wachovia for about 2.16 billion dollars, the latest consolidation move under government watch in the ongoing credit crisis.

Soon Swadeshi goods will be in vogue as Asian Development Bank has declared to provide USD 150 million (Rs 675 crore) loan to India in order to revive and enhance the nation’s khadi industry.

The re-emergence of the industry will not only provide rural employment but also encouragement to Small Scale industries. The loan, which will be given in four installments over a period of three years will entail success of 11th year plan, which emphasized on khadi production and the significance it holds for the women and the minorities from employments perspective.

Allahabad Bank has decided to defer its right issue and perpetual debt for the time being. The bank intended to generate Rs 2,500 crore through tier I and II capital through this right issue. Some other banks such as the Union Bank of India and Syndicate Bank have also decided to defer right issue.

The Chairman and Managing Director of Allahabad bank, K R Kamath said the bank do not want to dilute the stakes of the government at this time. The bank would wait for right time carry out right issue. It is recalled that the government holds 55.23 per cent stake in the Kolkata-based bank. 

Munich - Hypo Real Estate, the German bank caught up in the past two weeks' wave of collapses, said Saturday the government-backed bail-out it was hoping for had collapsed.

The mortgage lender said assurances of loans from several other financial institutions had expired.

Munich-based Hypo Real Estate, which mainly lends to commercial projects and to build public facilities, said it was assessing the impact on its various divisions and was seeking alternatives.

The central Reserve Bank of India (RBI) received a request from an industry lobby on Thursday to reduce cash reserve ratio and repo rate by 1 per cent, so that liquidity can be pumped into the markets. 

Furthermore, the Associated Chambers of Commerce and Industry of India (Assocham) in its recommendations has appealed to RBI to allow banks to borrow against government securities and make avail dollars directly to oil companies, instead of steering them through the market for the purchase of crude. 

The Executives of the Halifax Bank of Scotland (HBOS) are in Bangalore for a week to meet possible partners for doing their IT work. This step of out-sourcing has been taken by the HBOS to cut-down on its expenditure. However, a leading newspaper reveals that the trip of 11 Executives has cost the company 45,000 pounds.