Bankers share slowdown concerns on financial sector with Montek, Rangarajan

NEW DELHI: With new investment drying up, top bankers, fund manager and insurers today apprised Prime Minister's key aides Montek Singh Ahluwalia and C Rangarajan about the impact of the slowdown on the financial sector.

"We all shared it out. We said projects at this point of time are not coming, what should be done. Investor sentiment should be good and the cost should come down. Sanctions (to projects) should be made faster," Indian Banks' Association (IBA) Chairman Alok K Misra said.

He said there are indications that government was working on some "package".

The meetings come in the wake of apprehensions among bankers that investor confidence has been vitiated following announcement of controversial General Anti-Avoidance Rules (GAAR).

ICCI Bank Managing Director Chanda Kochhar along with, Canara Bank CMD S Raman and Chairman of Association of Mutual Funds of India (AMFI) and MD of HDFC, Mutual Milind Barve were among those who called on Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan.

The issue of non-performing assets in the banking sector also came up during meetings.

After meeting Planning Commission Deputy Chairman Ahluwalia, Kochhar said "... experience shows that for the industry as a whole, just about 15 per cent of the restructured assets have turned into NPAs. The most of restructured assets actually worked out".

In general, she added, "we should remember that in growth economy like India, most of restructured assets work will work. They will turn out into performing assist."

Later in the day, CEOs of power distribution companies (Discoms) met Financial Services Secretary D K Mittal seeking restructuring of the bank loans.