New Delhi: The United Progressive Alliance (UPA) has
narrowed down internal differences with the Left parties
over pending banking reforms by giving an assurance that
the restructuring exercise would not result in any significant
retrenchment in the sector.
a UPA-Left coordination committee meeting on Wednesday,
the Left parties on their part are understood to have
grudgingly agreed not to come in the way of the government''s
move to permit higher FDI limits in private sector banks.
they wanted regulatory safeguards to ensure that foreign
banks do not swamp the Indian banking sector through takeovers.
government has also agreed to come out with a detailed
roadmap for economic reforms that would be discussed with
the Left parties.
from the prime minister, Manmohan Singh, the meeting was
attended by the chairperson of UPA, Sonia Gandhi; the
finance minister, P Chidambaram; the CPI (M) general secretary,
Harkishan Singh Surjeet, the CPI leader, A.B. Bardhan,
and other senior Left leaders including Sitaram Yechury
and D Raja.
was a general exchange of views on the implementation
of the National Common Minimum Programme. The primary
discussion was on reforms of the banking sector,"
Chidambaram told reporters after the meeting.
meeting also emphasised on greater thrust on rural credit
with the prime minister assuring that lending target of
Rs1.5 lakh crore for the current fiscal is likely to be
said that the Left parties insisted that the government
ensure that banking reforms should lead to an improvement
of the health of banks, both in the public and the private