Rupee crisis: Chidambaram meets FIIs, top bankers to discuss capital flows

Mumbai: Finance minister P. Chidambaram on Saturday met foreign institutional investors (FIIs) and top bankers to discuss how to improve capital flows into the country.

Bankers present in the meeting included the heads of State Bank of India, ICICI Bank Ltd, HDFC Bank Ltd, Bank of India, Bank of Baroda, Citibank and Axis Bank Ltd.

Coming out of the meeting, ICICI Bank managing director Chanda Kochhar told said the meeting was “mainly to seek ideas and suggestions on what can be done about capital flows”.

State Bank of India chairman Pratip Chaudhuri said bankers and FIIs discussed the present market conditions and the steps taken by the government to contain the fiscal and current account deficits.

The government earlier this month had announced a series of measures, including giving more play to foreign investors in the domestic bond market to attract dollars inflows. The rupee touched its lifetime low of 65.56 a dollar on Thursday as FIIs liquidated their investments in India. The domestic currency has since then recovered on liquidity easing measures by the Reserve Bank of India and ended the week at 63.35 a dollar.

The meeting was also attended by economic affairs secretary Arvind Mayaram and additional secretary (capital markets) K.P. Krishnan.

Courtesy: Live Mint