'Govt ready to talk to strategic investors for IDBI Bank sale'

'Govt ready to talk to strategic investors for IDBI Bank sale'

The government is open to having talks with strategic investors for transforming IDBI Bank, according to Union Minister of State for Finance Jayant Sinha.

“IDBI is going through a qualified institutional placement (QIP) process, we have already said that we are open to having a discussion with strategic investors as far as IDBI is concerned, so let us see how the QIP book building process unfolds, and there as part of that we will be happy to discuss with potential strategic investors as to how transformation of IDBI should be undertaken,” Sinha said, while addressing the 11th Annual Banking Summit organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The Centre will take all measures possible to ensure that banks maintain capital adequacy norms. “As far as capital adequacy of the banks is concerned, we have been in close collaboration with RBI to work out those capital requirements, and we will fully support our banks,” Sinha said.

“The RBI is fully supportive of all requirements of liquidity and is standing to provide whatever liquidity is necessary. We are looking at all measures to ensure that there is sufficient liquidity and that we are able to support what is required as far as budget is concerned,” Sinha added. Sinha also expressed confidence about pick-up in consumer spending, as well as success of masala bonds going forward.

“Spending will pick up, the effects of 7th Pay Commission will come into force sometime in the next fiscal year, as it is if you look at consumption and sectors of the economy linked to consumption be it hotels, airlines, consumer packaged goods are actually doing quite well,” Sinha said.

“There have already been series of issuance of masala bonds and there have been serious turbulence now in the global capital markets as those markets strengthen and recover, I am sure masala bonds will do well,” Sinha added.

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