AIBEA protests move to raise FDI
By Our Banking Bureau | 19 Feb 2002
Kolkata:
The All-India Bank Employees Association (AIBEA) has expressed
concern over the reported decision of the central government to
allow foreign direct investment up to 49 per cent, against the
existing 20 per cent, in private banks.
This, along with another 49-per cent limit of portfolio investments from foreign institutional investors, will bring the total foreign capital in private banks to 98 per cent, says AIBEA general secretary Tarakeswar Chakraborti.
In a statement issued here, Chakraborti apprehended that the government decision will harm the banking system, as the presence of almost 100-per cent foreign capital in private banks will pave the way for the entry of foreign capital in public sector banks also in the not-too-distant future.
This, along with another 49-per cent limit of portfolio investments from foreign institutional investors, will bring the total foreign capital in private banks to 98 per cent, says AIBEA general secretary Tarakeswar Chakraborti.
In a statement issued here, Chakraborti apprehended that the government decision will harm the banking system, as the presence of almost 100-per cent foreign capital in private banks will pave the way for the entry of foreign capital in public sector banks also in the not-too-distant future.