Financial Daily from THE HINDU group of publications
Tuesday, Jun 07, 2005
Financial Daily from THE HINDU group of publications Tuesday, Jun 07, 2005 |
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Opinion
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Letters Public sector banks
This refers to the news report, `PSBs can raise more capital without Govt., stake dilution' (Business Line, June 5). The Government's idea not to dilute stake below 51 per cent in the public sector banks (PSBs) negates any future plans to sell equities through book-building process. Indian banks should become a multi-product financial centre for which more capital is required. The Government will have to revisit the policies and restrictive practices prevailing in the banking sector. The observation that the PSBs in aggregate could mobilise Rs 11,300 crore from primary equity markets without tilting the percentage of the Government holdings is a booster to the theory. The decision to retain the 51 per cent of the stake does not raise alarm in the event of a future regulatory modification of capital adequacy ratio to keep up with international standards. 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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