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Monday, Feb 02, 2004

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Opinion - Letters

IFCI merger

This is with reference to "IFCI merger with PNB gets board approval" (Business Line, January 31). The merger of Industrial Finance and Credit Corporation (IFCI) with the Punjab National Bank (PNB) is on expected lines and is welcome.

The PNB, which is cash rich, need not see the merger with IFCI as a burden. The acquisition of IFCI will give it the necessary leverage to focus on investment banking activities.

That it is only the good assets of IFCI that is to be merged with PNB, and the bad assets are transferred to an asset reconstruction company is also favourable to PNB. Importantly, IFCT has already formed an asset reconstruction company (ARC) jointly promoted with PNB to recover the lower non-performing loans.

C. Ramesh

Keeramangalam (TN)

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