Chidambaram discusses rupee, economy with bankers, FIIs

Mumbai, Aug 24 (IANS) Finance Minister P. Chidambaram Saturday discussed the volatility of the rupee and the macro-economic situation with top bankers and foreign investors separately, and assured them that the government would take all possible steps to ensure stability in the market and capital inflows.

Chidambaram was accompanied by top officials including economic affairs secretary Arvind Mayaram and financial services secretary Rajiv Takru at the meeting. He sought feedback from the participants about their concerns over what was happening in the country’s financial markets.

“Lot of good ideas came out from the meeting and I think you should see something coming up shortly in the next eight to ten days,” Takru told reporters after the meeting with bankers here. 

Top bankers including State Bank of India chairman Pratip Chaudhuri, ICICI Bank managing director Chanda Kochhar, HDFC Bank managing director Aditya Puri and Citigroup India head Pramit Jhaveri. 

ICICI Bank's Kochhar said: “The meeting was mainly to seek ideas and suggestions on what can be done about capital inflows. It was a very good and positive meeting.” 

Chidambaram held a separate meeting with foreign institutional investors (FIIs). 

Representatives of top global firms including Goldman Sachs, Citi, Morgan Stanley and Deutsche Bank attended the meeting. 

The meeting took place in the backdrop of massive outflow of money from Indian equities and debt markets that has led to huge volatility in rupee, and stock markets. 

Foreign funds have pulled out nearly $12 billion since late May after the US Federal Reserve hinted at trimming stimulus.