Return of bank capital: Govt yet to take a decision on pricing
By Our Banking Bureau | 31 May 2003
New Delhi: India''s finance secretary, Dr S Narayan, has clarified that no decision has yet been taken by his government on the pricing of the shares to be returned by the banks.
A clarification issued by the finance ministry said: "It has been clarified by the finance secretary that it has neither been decided nor is it the intention of the government to accept return of equity from some listed public sector banks at par when the price is higher in the market."
Stating a contrary position, an official spokesperson of the finance ministry had on Wednesday said the government did not propose to charge a premium on the equity being returned by the banks.
Among the banks that have plans to return capital to the government are Punjab National Bank, Bank of Baroda, Oriental Bank of Commerce, Andhra Bank and Indian Overseas Bank.
