Economists fear the country is in for a period of high inflation even though it may start easing from the current level of 7.41 per cent to around 6.4 per cent from mid-May onwards. "There is a likelihood of inflation declining in about a month's time. But it will still be around the 6.4 per cent mark," Bank of Baroda Chief Economist Rupa Rege Nitsure told at Mumbai.

Dresdner Bank, a subsidiary of Allianz Group, will open its first branch in the major Indian city of Mumbai (formerly Bombay) in the coming year after being granted a corresponding licence by the Indian Central Bank. "India is a booming market with enormous customer potential.

Weakness in Asian stock markets weighed on the Indian rupee as it fell further by two paise to 40.1650/1750 against the greenback in late morning deals. In dull trade at the Interbank Foreign Exchange (Forex) market, the domestic unit opened lower at 40.17/18 per dollar from overnight close of 40.1450/1550 and remained stable at 40.16/17 in late morning deals.

The Indian currency today improved by another seven paise to 40.44/45 against the US dollar in late morning deals on the back of sharp recovery in equity markets and expectations of fresh capital inflows after US Federal Reserve interest rate cut last night.

State Bank of India (SBI) led consortium will raise 3 billion dollars loan by April for Tata Motors' acquisitions abroad, including the 2-billion-dollar Jaguar and Land Rover deal.

Acknowledging that the rupee appreciation has created some problems for exporters, the government today assured the textile industry of addressing all its legitimate concerns to generate more employment.

South Indian Bank has drawn up a five-year plan to drive its total business to Rs.75, 000 crores by March 2013. Currently, the bank's total business stands at around Rs. 25,000 crore. Under the five-year plan, the bank envisages its deposits to grow to Rs. 44,000 crore and advances to Rs. 31,000 crore by March 2013.

The US dollar ended barely steady against the rupee at Rs 40.4350/4450 per dollar but the pound sterling turned lower at Rs 81.84/86 per pound at the close of the Interbank Foreign Exchange (FOREX) market here today.

The rupee pared early gains on Wednesday as investors squared positions ahead of a market holiday and uncertainty about the near term trend for the Indian unit.

The partially convertible rupee closed at $40.30/31, a shade stronger than Tuesday's 40.31/32 but weaker than an intraday peak of 40.21.

Unlike public sector banks, the private sector banks, including the second largest ICICI Bank, may not cut retail lending rates in near future due to volatile global financial markets.