A majority of public sector banks have rejected the proposal of pumping in liquidity in Unit Trust of India through buying stocks held under its flagship US-64 scheme.
These banks are, however, willing to extend clean loans to UTI for a short period, provided the Centre is willing to back this exposure with a comfort letter ensuring timely payment of interest and principal amount.
UTI chairman M Damodaran is expected to meet finance minister Yashwant Sinha in Delhi tomorrow (Thursday) to give final touches to the Rs 4,000-crore liquidity support package.
Damodaran met select bankers in Mumbai today to review the plan. Chiefs of State Bank of India, Bank of Baroda, Bank of India, Central Bank, Punjub National Bank and Corporation Bank attended the meeting.
