Bank Equity Buyback Not At Par: Govt

In a turnaround from its earlier position, the finance ministry today said the Centre did not intend to accept equity returned by some listed public sector banks at par when market prices were higher.

In a carefully worded statement, Finance Secretary S Narayan clarified that it was not yet decided whether the buyback would be at par.

Several public sector banks, however, reacted strongly, saying they would reconsider their decision to return equity if the buyback was at a premium.

A ministry spokesperson on Wednesday had said the equity returned by banks would be bought back only at par.