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MUMBAI: Satisfied over the Manmohan Singh-led United Progressive Alliance all set to form the Government, bankers on Saturday said it would help in pushing economic reforms forward, particularly disinvestment in PSUs.

“I am much delighted to see the result. Electorate are sensible. Less dependence on allies will help to form a stable Government...the continuity of the UPA Government is expected to push economic reforms,” HDFC Chairman, Mr Deepak Parekh said.

Mr Parekh said the Government should disinvest its equity in public sector undertakings and generate revenue rather than going in for steep hike in taxes.

“We have huge deficits, mainly large current account deficit. Last year deficits on oil and fertlisers were also high. The Government needs to opt for disinvestment in those PSU companies where its holding is above 51 per cent,” Mr Parekh said.

Welcoming the poll results, Indian Banks' Association Chief Executive, Mr K Ramakrishnan said the continuity of a stable Government is good for the banking sector.

“This is the continuity of Government. This is good for (the) economy, good for the banking sector,’ he said.

Noting that the steps taken by the Government to guard the economy in the face of the global financial meltdown have yielded results, he said the new Government is expected to push reforms.

“Various measures taken by the Government to add stimulus to a sagging economy have yielded results. I expect further push in reforms in the economy and in the banking sector,” Mr Ramakrishnan said.

Foreign lender Standard Chartered Bank Country Head, Mr Neeraj Swaroop also welcomed the poll-outcome saying the formation of a stable Government is good for the economy.

“We are very happy to see the formation of a stable Government,” Mr Swaroop said, adding, “It is too early to comment on what would be the economic policies of the new Government.”

Bank of Baroda Chief Economist, Ms Rupa Rege Nitsure said the immediate priority of the Government should be fiscal consolidation. - PTI

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