Bank M&As

Updated: Dec 30 2006, 05:30am hrs
Private banks are reportedly pitching for tax sops on acquisitions. Benefits under 72A of the Income Tax Act are available to state-owned banks that take over a loss-making bank, by letting them set off accumulated losses of the amalgamated bank against its profits. This is not available even to UCBs.
—Srinivasan Umashankar

Just not so
Please refer to the news report (‘Bourses could be asked to list in 2 years’, December 27). It states, ‘The finance ministry is considering a proposal to make it mandatory for stock exchanges to get their shares listed in India within two years of notifying new ownership guidelines.’
The ministry is not considering any such proposal.
—MS Sahoo Director Securities markets Ministry of Finance

Balance of error
Much ire directed at IPO ratings stems from the proposal that these be forcibly applied. As with forced evictions, the response is bound to be one of anguish. Try voluntary ratings instead. I disagree, though, that these oversimplify IPOs, for they’d be just another tool, with nothing omniscient about it, as your editorial said. Will the ratings ‘err’, in your view, less on the side of false-positive or false-negative calls Three data points of experience may establish this. Even big geopolitical risks can be condensed into a single digit.
Jaspal Arora