Top bankers meet Finance Secretary

The Indian Bankers Association had called a meeting of bankers. The Finance Secretary Arun Ramanathan was present at the meeting The Ministry of Financer Joint Secretary - Banking, Amitabh Verma, also present at the meeting.
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Dec 12, 2008, 05.47 PM | Source: CNBC-TV18

Top bankers meet Finance Secretary

The Indian Bankers Association had called a meeting of bankers. The Finance Secretary Arun Ramanathan was present at the meeting The Ministry of Financer Joint Secretary - Banking, Amitabh Verma, also present at the meeting.

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Top bankers meet Finance Secretary

The Indian Bankers Association had called a meeting of bankers. The Finance Secretary Arun Ramanathan was present at the meeting The Ministry of Financer Joint Secretary - Banking, Amitabh Verma, also present at the meeting.

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Here is a verbatim transcript of Pranshu Sikka’s comments on CNBC-TV18. Also watch the accompanying video.

 

The Indian Bankers Association had called a meeting of bankers. The Finance Secretary Arun Ramanathan was present at the meeting The Ministry of Financer Joint Secretary - Banking, Amitabh Verma, also present at the meeting. They discussed further action on a package for housing & SMEs (Small and Medium Enterprises).

 

The IBA said that they want to make housing sector as attractive as possible. The package for small ticket housing sector would be finalised in next 1-2 days. The IBA may give other incentives besides lower rates for affordable housing. It has said that it may look at tweaking the processing fee and margin requirement. No interest rate figures have been decided for small ticket housing loans.

 

Speaking on the government’s package, TS Narayansami, CMD of Bank of India said, “From banks perspective we wanted to interact amongst ourselves to see what sort of relief can be given further to the housing sector and the SME sector. Obviously it will not confine only to interest, for the housing sector we want to make it as attractive as possible and so we were discussing on what can be the modalities on which this package can be structured. We have not come to any definite conclusion on this and we are still working on this, I think in the next 1-2 days some package will be formalized for the housing sector upto 5 lakh and between 5-20 lakh.”

 

We are discussing on what sort of package should be given. If I was only going to say it was going to stop with interest rate reduction it will not augur well for a package. So there have to be some other incentives also apart from interest.

 

Commenting on any other incentives, Narayansami said, “We will have to see whether any processing charge can be totally waived, pre payment clause etc we are yet discussing and haven’t concretized on anything.” The package can also include on some concession on margin requirements, he added.

 

I don’t think there will be any subvention will be involved or will be necessary for that. We haven’t come to any firm conclusion maybe by tomorrow or day after we should be able to crystallize on what we have to do.

 

Narayansami clarified that no interest figures have been crystallized. “The whole exercise is to make interest more affordable by these sectors there fore there will be more pragmatic view in cutting down interest,” he said.

 

There have been some incentives for SMEs as well. “For SME’s also we are working on some relief. Already RBI has announced one relief and from banks side whatever needs to be done, we are looking into it, which will also include some interest concession on which we yet have to crystallize.”

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