Date:25/08/2003 URL: http://www.thehindu.com/2003/08/25/stories/2003082506161100.htm

National

Ordinance to convert IDBI into a bank ruled out

New Delhi Aug. 24. The Finance Minister, Jaswant Singh, today ruled out an Ordinance to convert the IDBI into a bank, even though he was disappointed that the recently-concluded session of Parliament could not pass the Bill.

He had said in the Lok Sabha that the Government would not be able to ``guarantee the health'' of the IDBI if the Bill to convert it into a company was not passed by Parliament this session. The Bill to repeal the IDBI Act was approved by the Parliamentary Standing Committee on Finance with some minor changes. But it could not be passed last week. The Industrial Development Bank Bill, 2002, which was sent to the Standing Committee of the Finance Ministry last winter, would be carried forward to the next Winter Session.

The Congress and CPI(M) had made it clear that they would oppose any move to issue an Ordinance. The IDBI was in financial stress mainly on account of the non-performing assets (NPA) worth over Rs. 15,000 crores leading to a decline in its lending abilities.

PTI