IDBI rejig, divestment bills likely to get parliament nod

NEW DELHI: Minister of State for Finance Anandrao Adsul is hopeful that a bill for IDBI restructuring and another for allowing banks to dilute government stake from 51 to 33 per cent would get the approval of the Parliament in the next session.
The bill to amend Banking Companies Act was introduced in Parliament two years ago but was referred to the Standing Committee on Finance.
"The bill to amend Banking Companies Act is still pending with the Standing Committee. If the panel submit its report, there is a possibility that the bill will be taken up for approval in coming session of Parliament," Adsul said on the sidelines of a prize distribution function.
He said the bill to repeal IDBI Act and transform it into a universal bank would also be taken up in the coming session starting on July 21.
The standing committee has already finalised its report on restructuring the country''s largest financial institution and it would be tabled in Parliament soon.
After introducing the securitisation laws for reducing non-performing assets of banks, Adsul said, the government was now considering a bill on lender''s liability to protect the interest of borrowers as well.
The important economic legislations have resulted in reduction in NPAs and rise in profitability of banks, he said.
The average NPAs of the public sector banks came down to about 4.5 per cent from 6-7 per cent in 2001-02. It is expected to fall further to 2.0 per cent this fiscal.
Operating profits of public sector banks rose by 37 per cent at over Rs 21,000 crore.
The other bills that are in the offing are amendments to Securities Contracts Regulation Act and Depositories Act, which would pave the way for demutualisation of bourses.
The Fiscal Responsibility and Budget Management bill is also awaiting the nod of Rajya Sabha.
Last fiscal, the government passed important bills including one for amending Sebi Act and another for repealing UTI Act.