Monday, January 23, 2012

RBI sees red over bank loans to aid sell-offs

The Reserve Bank of India (RBI) has opposed a government plan under which public sector banks will lend money to a new asset management company (AMC), which, in turn, will buy stakes in state-owned enterprises to support the faltering disinvestment programme. According to sources, the central bank has rejected this proposal as it would expose banks to undue market risk and violate capital market exposure limits on banks set by the central bank.................

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