US Govt. May Remove Citi’s Pandit - U.S. regulators who are concluding "stress tests" on banks may remove Citigroup Inc chief executive Vikram Pandit, the New York Post reported. The regulators may have to take such a step to show the government is taking as strong a stand on banks as it did with General Motors Corp when it removed Rick Wagoner, the paper said. (Reuters)

Jet Seeks New Terms for $2 Billion Loan - Jet Airways, India’s largest privately-owned airline, has approached the US Exim Bank and European export credit agencies to reschedule a $2 billion loan (Rs 10,000-crore) loan that was raised to buy 27 Boeing and eight Airbus aircraft. With operating losses mounting to Rs 1,237.34 crore in the first three quarters of 2008-09, as a result of slowing passenger traffic, Jet is finding it difficult to meet the annual repayment obligation of Rs 1,200 crore (principal of Rs 900 crore plus interest of Rs 300 crore) on these loans. The annual interest rate on these loans is 4 to 5%. (Business Standard)

RBI Checks for Surrogate Holding in Banks - The Reserve Bank of India (RBI) is examining surrogate holdings of Indian companies in private sector banks. The move follows a hostile takeover attempt by a leading Mumbai-based real estate company to acquire around 42% in Kolhapur-based Ratnakar Bank. A top Ratnakar Bank executive said the company, which also has interests in financial services, had approached the bank in January-February this year to explore the possibility of acquiring a substantial stake in the bank. The bank’s board, however, did not entertain the move and cited regulations that do not permit any single entity to hold more than 10 per cent in a bank. RBI also stepped in and immediately appointed two observers on the bank’s board. According to sources, RBI is taking the issue of surrogate shareholding seriously, although scanning for such holding is part of the routine audit of banks. (Business Standard)

Indiabulls to Raise $600 Million for Power Projects - The board of property developer Indiabulls Real Estate (IBREL) has approved a plan to raise $600 million (Rs 3,000 crore) through qualified institutional placement (QIP) of securities. The company is expected to use the QIP proceeds to fund its power projects, mainly a 1,320-megawatt project planned in Amaravati in Maharashtra. The QIP was expected to be a precursor to the initial public issue (IPO) being planned by the company. The company had called an extraordinary general meeting on May 18 to seek shareholder nod. (Business Standard)

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