FM reassures PSU banks
Mumbai: Finance Minister P Chidambaram has told public sector banks to go ahead with plans to tap the capital market provided the government's stake does not fall below 51 per cent. He added that while banks would have full functional autonomy, they would be accountable. Chidambaram told bankers on Wednesday evening the pace of reforms would accelerate as the United Progressive Alliance government stabilises.

As the government will not extend capital support to public sector banks, they could raise resources from the market within the available headroom. Chidambaram emphasised that there was no directed lending to agriculture. The government will not meddle in pricing and the risk adjustment exercise of banks for agri-lending and that concern about sticky assets on this account was misplaced.
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Rupee gains 14 paise
Mumbai: The rupee gained 14 paise in the currency market mainly due to central bank support and global weakening of the US dollar and ended the day at 45.24/25, levels up 14 paise from Wednesday's close of 45.38/39 in its value against the greenback.
The rupee opened the day at 45.35/37. While there was no demand from FIIs for the dollar, gold importers were purchasing dollars. Meanwhile, the BSE Sensex closed 105 points down from the previous close. State-run banks were seen selling dollars in the market perhaps on behalf of the central bank in the last one hour of trading, said dealers.
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