Sunday, February 6 2005 11:12 Hrs (IST) - World Time -

New Delhi: Under attack from Left parties over the proposed banking reform roadmap, the Government is expected to come out with stringent norms to prevent "predatory takeovers" of Indian private banks.

But there was no question of going back on the Government's commitment to allow upto 74 per cent foreign equity in Indian private banks, which has already been notified by the previous NDA (National Democratic Alliance) Government on March 5, 2004, authoritative sources told reporters.

"It is a question of self-respect and banking reform roadmap will be announced by Reserve Bank shortly allowing upto 74 per cent equity in Indian private banks," the sources said.

Basically the Left parties were not opposed to the roadmap and the opening up but what they fear is such opening up could lead to predatory takeovers, the sources said. "We have taken the Left into confidence" on this issue and the roadmap will have adequate safeguards on this score.

Finance Minister P Chidambaram has already said that the roadmap would be announced in due course and that the Reserve Bank was in the process of fine-tuning it.