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HindustanTimes Thu,30 Oct 2014

Chidambaram meets top bankers to shore up fund inflows

HT Correspondent, Hindustan Times   Mumbai, August 24, 2013
First Published: 16:14 IST(24/8/2013) | Last Updated: 01:43 IST(25/8/2013)

Finance minister P Chidambaram and top government officials, on Saturday, met foreign institutional investors (FIIs) and top bankers to address their concerns about the economy and discussed ways to improve capital flows into the country to shore up falling rupee.

The government is likely to announce more measures to increase fund flows to shore up rupee in coming days.

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“All measures to attract fund flows are under consideration. I think you should see something coming up shortly, say within a week or in the next 10 days,” financial services secretary Rajiv Takru told reporters after the meeting.

The meeting assumes importance as the rupee, which had plumbed to a low of 65.56 to the dollar on Thursday, has fallen around 20 % since the April this year due to outflow of funds from India on the concern of US Federal Reserve scaling down monetary stimulus and slowing growth in the Indian economy.

The rupee, one of Asia's worst performing currencies, bounced back 2.09 percent -- its biggest one-day gain since September 2012 -- to end trade at 63.20 Friday, up from closing of 64.55 the previous day.

“The meeting was mainly to seek ideas and suggestions on what can be done about capital inflows. It was a very good and positive meeting,” Chanda Kochhar, MD and CEO, ICICI Bank told reporters after the meeting.

Chiefs of the banks who met the minister included State Bank of India’s Pratip Chaudhuri, HDFC Bank’s Aditya Puri, Pramit Jhaveri of Citigroup India, Vijayalakshmi Iyer of  Bank of India and Canara Bank’s RK Dubey among others.

When asked whether there was any directive from the minister to the bank about NRI bonds, the SBI chairman said "there was no directive, as it was only a consultation."


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