The finance ministry is likely to ask a consortium of banks and financial institutions led by Life Insurance Corporation (LIC) to bail out the beleaguered Unit Scheme 64. The package could be in the form of an interest-free or soft loan to UTI to be paid back over a period of 10-15 years.
According to sources, the finance ministry which met the UTI top brass today has asked for a meeting of UTI with LIC, Industrial Development Bank of India (IDBI) and a majority of public sector banks tomorrow to thrash out the quantum of financial support needed to tide over the crisis. This meeting is besides the one called by finance minister Yashwant Sinha tomorrow with banks and FIs to discuss their results, credit offtake, capital market exposure, non-performing assets and a move towards universal banking.
Tomorrow
