The state-owned banks are currently grappling with Rs 1,000 crore stick assets out of their exposure to the public sector units (owned by state governments).
According to Indian Banks? Association ,as on August 31,2007, the total amount which such PSUs owe to the state run banks is estimated to be over Rs 1,000 crore
Even though the state governments? guarantee on the exposure have been invoked by the banks, no payment has been made by the PSUs to the banks so far.
In an effort to sort out the issue, IBA has advocated a common approach on the state government guaranteed bonds that were issued by various state-run banks to the public sector undertakings sponsored by their respective state governments.
Briefing the media on completion of IBA?s monthly managing committee in Mumbai on Friday, HN Sinor, chief executive officer said, ?We are in favour of a common guideline on the issue, while one-time settlement being another issue.?
Sinor said the Reserve Bank of India had convened a meeting of the chief secretaries of all the affected states, asking them to settle the issue. Still, nothing concrete has happened on it as yet, said Sinor.
?The banks are now finding themselves in a Catch 22 situation,? he said.
Sinor referred to Ganguly Committee?s report on Clause 49 and said, ?We have formed a study committee and it will be ready with its reply to be given to the RBI over the subject within 15 days.?