Financial Daily from THE HINDU group of publications
Sunday, Jun 26, 2005
Financial Daily from THE HINDU group of publications Sunday, Jun 26, 2005 |
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Financial Policy Money & Banking - Public Sector Banks Govt may infuse capital into Punjab & Sind Bank Our Bureau
New Delhi , June 25 THE Government may consider providing recapitalisation support to Punjab and Sind Bank (P&SB), the Finance Minister, Mr P. Chidambaram, said here on Saturday. "The extent of capital infusion would depend on the bank's plans for the current year in terms of deposit mobilisation, expansion of credit and recovery of non-performing assets (NPAs)," Mr Chidambaram told presspersons on the sidelines of the seminar on `Foreign Contribution Regulation Act 1976' jointly organised by the Union Home Ministry and the Institute of Chartered Accountants of India (ICAI). The Finance Minister, who had earlier in the day met the senior management, officers and unions of P&SB at its headquarters, said that he had asked the bank to submit a plan for a turnaround. PSB is understood to have already sought around Rs 500 crore as bailout package from the Government. "Today, the bank (P&SB) begins its 98th year of operations. In three years from now, the bank will be turned around. They (management, officers and unions) have all promised to cooperate," Mr Chidambaram said. From 1997, the Government has helped turn around a number of banks, including UCO Bank and Indian Bank through recapitalisation. Mr Chidambaram had after his meeting with chiefs of public sector banks in early June identified Punjab and Sind Bank as one of the two banks that had "slightly higher" NPAs. He had then said that P&SB had been separately called to present their plans for reducing their NPAs. Asked whether the Government intends to allow foreign direct investment in accountancy sector, Mr Chidambaram told presspersons that India would make an offer for opening up the services sector. "The offer that we will make cannot be disclosed. But we have to move forward. The pace with which we will move forward depends on other countries," he said.
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