Ficci, Iba Set Up Working Group

The Federation of Indian Chambers of Commerce & Industry (Ficci) and the Indian Banks Association (IBA) have set up a joint working group to look into problems faced by the corporates in their dealings with banks.

The working group will consist of ten persons, with seven members from the IBA and three from Ficci.

IBA will be represented by officers from various banks of the rank of general manager and above. Ficci has not yet finalised its members.

The Ficci members could vary, depending on the industry and nature of problems being tackled by the group.

The committee is likely to be headed by A C Gupta, chairman of the Central Bank of India. An IBA official said, "Some of the issues which could be addressed are clarifications to various RBI circulars, which may be needed by the industry."

The other problems could be lending to the trading and seasonal kind of industries, where the normal MPBF calculation (maximum permissible bank finance), which still remains the main model for calculating working capital limits, continues to apply.

The group initially expects to address short term issues. Over a period of time, it will also look at larger policy related issues.

The group will put up solutions arrived at before the IBA managing committee, which will, after clearing them, pass it on to the secretary, after which they can be presented in the ministry.