No dilution of majority stake in public sector banks: Mukherjee

August 18th, 2009 NEW DELHI - The government will infuse fresh capital into the regional rural banking system to increase credit flow to the farm sector, Finance Minister Pranab Mukherjee said here Tuesday. "The non-performing assets (NPA) levels of the regional rural banks (RRBs) are within acceptable limits.

July 26th, 2009 KOLKATA - Finance Minister Pranab Mukherjee Sunday ruled out privatisation of state-run banks and said market economy was not the solution to the nation's economic problems. Recalling that the late prime minister Indira Gandhi had nationalised banks 40 years ago in 1969, Mukherjee said, "We survived the economic meltdown because of this step.

July 22nd, 2009 MUMBAI - Listed companies could raise over Rs.159,000 crore if Finance Minister Pranab Mukherjee's proposal to reduce promoter stake in all listed companies to 75 percent becomes a policy, a report released Wednesday said. Of this, state-owned firms alone will contribute as much as Rs.138,000 crore, the report by broking firm SMC Capitals said.

July 14th, 2009 NEW DELHI - Finance Minister Pranab Mukherjee Tuesday said the United Progressive Alliance (UPA) government remained committed to divesting stakes in the state-run companies, but without diluting their public sector character. Replying to the debate on the national budget in the Lok Sabha, the lower house of parliament, the finance minister said there was some disappointment that not enough was said on the government's divestment policy in his July 6 budget speech.

July 7th, 2009 NEW DELHI - Finance Minister Pranab Mukherjee Tuesday said the national budget was not the document to spell out micro policy details and the United Progressive Alliance (UPA) government remained committed to divestment in state-run firms without diluting their public sector character. "I have made it very clear that we intend to include the public in disinvestment programmes," Mukherjee told an interactive meeting with India Inc, a day after presenting the national budget for the current fiscal.

July 6th, 2009 NEW DELHI - The government will raise Rs.1,120 crore (Rs.11.2 billion/$224 million) this fiscal from sale of government equity in state-owned units, according to the budget papers Finance Minister Pranab Mukherjee presented in parliament Monday. In 2009-10, "disinvestment proceeds have been estimated at Rs.1,120 crore which includes disinvestment of a small portion of equity in Rail India Technical and Economic Services (RITES), Cochin Ship Yard Ltd, Telecommunications Consultants India Ltd, Manganese Ore India Ltd, Rashtriya Ispat Nigam Ltd, and Satluj Jal Vidyut Nigam Ltd," the Receipts Budget 2009-10 said.

July 6th, 2009 CHENNAI - The government will continue to hold at least 51 percent stake in the banks and insurance companies it owns, Finance Minister Pranab Mukherjee said while presenting the union budget for 2009-10 in the Lok Sabha Monday. However, citing the average public float in listed entities - which is less than 15 percent - the finance minister said the government proposed to increase the non-promoter holding in listed companies.

June 28th, 2009 NEW DELHI - The government can raise about Rs.80,000 crore ($16.6 billion) by divesting stake in public sector units, says an industry lobby report. "Dilution of stake in leading public sector units alone could fetch at least Rs.80,000 crore," the report by Associated Chambers of Commerce and Industry (Assocham) said, adding that this amount could be used to bring down the fiscal deficit burden.

June 11th, 2009 NEW DELHI - Finance Minister Pranab Mukherjee Wednesday pushed for commercial banks to cut interest rates, saying the measures announced by the central bank to ease their burden were not getting adequately reflected. Between September 2008 and April 2009, RBI reduced the key policy rates and also reduced the CRR (cash reserve ratio) and SLR (statutory liquidity ratio) requirements for banks," Mukherjee told heads of public sector banks here.

June 10th, 2009 NEW DELHI - Finance Minister Pranab Mukherjee will meet heads of public sector banks today. Issues like review of interest rates of banks, credit growth and agriculture loans will be discussed during the meeting.

June 8th, 2009 NEW DELHI - The government's decision to infuse fresh capital in public-sector banks (PSBs) will ease the rating pressure that they face because of the quality of loans, says the economic intelligence arm of global rating agency Moody's. "Asset quality at PSBs (public-sector banks) is bound to deteriorate over the short-to-medium term, while the level of restructured loans is also expected to increase significantly, therefore elevating their credit risk profile," said Nondas Nicolaides, vice president and senior analyst at Moody's.com in a statement Monday.

May 25th, 2009 NEW DELHI - Finance Minister Pranab Mukherjee Monday formally assumed charge of his portfolio and "immediately" convened a meeting with officials to discuss budget issues, which a ministry official said would be finalised before July-end. "There was a closed room meeting with the officials of both the CBDT (Central Board of Direct Taxes) and the finance ministry," the official said requesting anonymity.

April 27th, 2009 Malaysia takes big step in finance liberalizationPUTRAJAYA, Malaysia — Malaysia announced Monday it will let foreigners hold a majority stake in insurance companies and investment banks, while five more foreign banks will be allowed to operate by 2011 in major steps toward financial liberalization. Prime Minister Najib Razak told reporters he is raising the foreign ownership cap in insurance companies and investment banks — known as noncommercial banks — from 49 percent at present to 70 percent.

March 31st, 2009 MUMBAI - Reserve Bank of India (RBI) Deputy Governor Rakesh Mohan has said that triad banking model - state-run, private and foreign banks - is working well in India. Mohan said that the growth of each sector has spurred healthy competition.

February 15th, 2009 NEW DELHI - The combined turnover of the central public sector enterprises (CPSEs) has gone up 84 percent to Rs.10.81 trillion (Rs.10,81,000 crore) last fiscal from Rs.5.87 trillion in 2003-04, Minister for External Affairs Pranab Mukherjee said here Monday. Presenting the interim budget for 2009-10 in the Lok Sabha on behalf of Prime Minister Manmohan Singh who is recuperating from heart bypass surgery, Mukherjee said combined profit of the CPSEs has increased 72 percent from Rs.530 billion to Rs.910 billion.