India and World Bank have recently signed a deal, according to which WB will issue a loan of $4.2 billion for the infrastructure projects as well as for re-capitalizing the public sector banks.

The deal was signed in the presence of the legislative bodies of the central government, Indian Infrastructure Finance Co. (IIFC), PowerGrid Corp and the World Bank.

The World Bank has approved $4.3 billion loan for India for the sake of projects designed to lift the country’s infrastructure and economics stimulus program.

Talking to media, Mr. Roberto Zagha, World Bank Country Director for India, said, “This is a crucial time to support India. While the worst of the crisis seems to be behind us, doubts linger about the strength of the comeback. Today's support will help maintain credit growth and continued infrastructure investments.”

Vijaya Bank has issued a statement saying that it does not have any more fund raising plan during the year as it is anticipating Rs 700 crore from the central government as recapitalization in the third quarter of the current financial year.

While addressing media, Mr. Albert Tauro, Vijaya Bank Chairman and Managing Director said, “We have already received Rs 500 crore and another Rs 700 crore would be received in the third quarter of the year.”

ICICI Bank, India’s largest private sector bank, rolls out new home loan plans at less interest rate for new customers effective from August 20.

As per the new plans, interest rate for loans up to Rs 20 lakh is 8.75%, and an interest rate of 9.25% will be charged on loans between Rs 20 lakh to Rs 50 lakh.

The loans above Rs 50 lakh will carry an interest rate of 9.75%.

Except for the special offer, the bank’s interest rates were in the range of 9.25% to 11%.