• PAGE ONE
• INDEX
• HOME

Banks promise support to UTI

Our Bureau

MUMBAI, July 18

EIGHT large nationalised banks have assured liquidity support to Unit Trust of India (UTI) to tide over the redemption pressure on US-64.

The chiefs of banks, at a meeting with the UTI Chairman, Mr M. Damodaran, today decided that UTI can draw funds from these banks should the need arise due to large-scale redemptions, which UTI does not foresee.

UTI officials said that the banks have reiterated the understanding reached at a joint meeting of bankers, UTI and Ministry of Finance officials at Delhi on July 13 for liquidity support if needed.

Those who attended today's meeting included senior officials from SBI, Bank of Baroda, Bank of India, Punjab National Bank and Central Bank of India.

UTI officials said that the meeting between the UTI Chairman and the bankers was a "courtesy call" and "was to discuss matters of mutual interest".