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Sep 17, 2007

Fed may cut rates

The Federal Open Market Committee, which meets Tuesday, is widely expected to act in the face of the worst housing slump in decades, which has led to rising mortgage defaults and a tightening of credit standards that threatens the overall economy. A growing number of analysts say they expect the FOMC, which has held its federal funds rate at 5.25 per cent since June 2006, to cut the benchmark rate by 25 to 50 basis points.

SBI associate banks staff strike

The State Sector Bank Employees Association (SSBEA), an umbrella organization of six SBI associate banks, has called for a strike on September 27, to oppose any attempt of merger with SBI. The union is opposed to consolidation of associate banks with SBI as the merger is not in the interest of the economy and banking sector, SSBEA central committee member Mr V B Gupta said.

China hikes interest rates

China's central bank announced on Friday its fifth interest rate hike this year, raising both deposit and lending rates by 27 basis points. After the hike, which takes effect on Saturday, the key one-year lending rate will be 7.29 per cent.

ICICI Bank's training programme

ICICI Bank has announced a nation-wide initiative called "Probationary Officer Programme' aimed at attracting bright graduate students to pursue a career in banking. Applications will be invited from graduates across the country and aspirants who are selected under this programme will go through an intensive one-year residential training programme. They will also have an opportunity to pursue an e-MBA while working and costs incurred would be borne by ICICI Bank.

IOB in talks for tie-up with another bank

Chennai-based Indian Overseas Bank is looking for a tie-up with another bank to expand its business and reach. Mr S.A. Bhat, Chairman and Managing Director, IOB, said, “Talks are at a very formative stage. We will tie up with a bank that will complement us in terms of business and geographies.” Mr Bhat said that the agreement would be on the lines of the alliance between three public sector banks - Oriental Bank of Commerce, Indian Bank and Corporation Bank, which was signed last year.