Budget 2012: What bankers want!

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Budget 2012: What bankers want!

Representatives of banks and financial institutions presented their budget wishlist today. Top demands include STT reduction and tax exemptions for non-performing assets (NPAs), reports CNBC-TV18’s Aakanksha Sethi.

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Representatives of banks and financial institutions presented their budget wishlist today. Top demands include security transaction tax (STT) reduction and tax exemptions for non-performing assets (NPAs), reports CNBC-TV18's Aakanksha Sethi.

Bankers want more diversion of domestic savings in to equity markets and transactions should be simplified as well as they want higher deposits in the banking system.

Pratip Chaudhuri, chairman of SBI says that interest income on deposits, beyond three years, should be treated as capital gains so that it is tax exempted.

Also, one of the common demands of several bankers was that in a market that is facing higher NPAs due to distressed sectors such as power, aviation, textiles, the provisioning that is made for NPAs should be completely tax exempt. Right now, it is only tax exempt upto 7.5%.

Also, there was a demand for a higher import duty on gold and gold deposits, securitisation of gold and using gold as a mechanism for drawing higher deposits into the banking system.

For simplifying transactions, they wanted that STT should be reduced. That is something that the capital markets division has been considering earlier as well. It remains to be seen how many of these demands are actually met in the budget, but this is broadly what the bankers are asking for.