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.

There is likely to be a shuffle in the top brass of ICICI after the retirement of N Vaghul on April 30, 2009. Chanda Kochhar is most likely to be appointed as managing director and chief executive officer. Kochhar, who at present is holding the position of joint managing director and chief financial officer of the bank, will succeed KV Kamath, who will become the non-executive chairman.

State Bank of India and Small Industries Development Bank of India (Sidbi) announced a cut in interest rates for the new loans to micro, small and medium enterprises by up to one per cent. Interest rate reduction came after the announcement of a special package by the RBI and Association of Bankers. The new rates would be effective immediately. Small scale industry had been demanding financial package from the government to push demand in the sector which is adversely impacted by the ongoing financial crisis.

Singapore  - The World Bank and Singapore signed an agreement Thursday to set up an urban hub in the city-state to provide and facilitate advice and technical assistance to developing countries on urban management, water and resource management, city financing and urban design.

World Bank President Robert Zoellick and Singapore Foreign Minister George Yeo signed the agreement, under which the two sides said they would collaborate to meet growing demand from developing countries for technical advice, especially on urban management.