Financial Daily from THE HINDU group of publications
Wednesday, Dec 17, 2003
Financial Daily from THE HINDU group of publications Wednesday, Dec 17, 2003 |
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Opinion
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Letters Bank mergers and acquisitions
Your editorial, "Foggy regulations" (Business Line, December 16) brings out the divergent stands of the RBI and the Finance Ministry in respect of bank mergers and amalgamations. The disparity in the Indian private bank state holding by Indian corporates and the foreign companies is a blow to domestic companies. The opposite stands taken by the RBI and the Finance Ministry in respect of issue of new licenses to banking companies are surprising. The present banking scene in India demands consolidated efforts, paving the way for healthy competition and improved vibrancy of banks. There is little doubt that if IDBI is to be amalgamated with any bank, it should only be SBI, as no other bank will be able to take such a heavy burden. The government should have weighed this option even at the stage of formulating the IDBI Bill. Though the sole authority for formulating norms in respect of amalgamations and mergers vests with the government, it would be desirable to keep the regulatory functions with the RBI. C. P. Velayudhan Nair, Kochi
Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in
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