State Bank ofIndia and PunjabNational Bank are among the banks being considered to take upstakes in the government's planned 5 billion rupees credit enhancement fund, thePress Trust of India reported Oct. 2, citing a "person aware of thedevelopment."
The two banks, along with one or two more banks, are intalks with the government about possible interests in the fund.
India InfrastructureFinance Co. Ltd. will set up the fund, while will owna substantial stake. The government has asked the Insurance RegulatoryAuthority of India to exempt the insurer from the 15% cap on investments inother companies.
Other entities considered to take up stakes in the fund areAsian DevelopmentBank and International Finance Corp.
As of Sept. 30, US$1was equivalent to 66.58 Indian rupees.