New Delhi: In an effort to get high rate of interest, the Public Sector Units (PSUs) have demanded that banks should be allowed to bid in order to secure the deposits of PSUs as they are required to stock bulk amount with these financial institutions.

The Department of Public Enterprises (DPE) has written a letter in this regard to Finance Ministry. PSUs had a surplus of about Rs 2.50 lakh crore at the end of financial year 2009-10.

Presently, PSUs have been given the option of choosing the banks of their own choice but the rate of interest offered remains the same in all the banks.

The current one-year rate for bulk deposits of PSUs among public sector banks stands at 9 percent.

A minimum of 60 per cent of the investible funds of the PSUs should be parked with the government banks thus making it impossible for the PSUs to invest anywhere and seek benefit from the funds.

The companies believe that if banks raise the interest rates by 10-20 basis points or 0.10 -0.20 percent, it would make huge difference to the earnings of PSUs.
 
However, Finance Ministry has not taken any decision in this regard.

Fearing loss of revenue, the Finance Ministry has piled up pressure on all the companies to make the payment of their profit for the previous financial year to the government.

The companies are required to pay 20 percent of their profit to the Centre.

 

(JPN/Bureau)