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Sunday, March 19, 2017

FinMin okays capital infusion for 10 public sector banks (PSBs) banks

Coming in support of weak and non-performing public sector banks (PSBs), the Finance Ministry has chalked out a turnaround-linked ₹8,586-crore capital infusion plan for 10 PSBs.
The capital allocation would be linked to quarterly milestones on which all related parties — Banks’ Board, management, employees and unions must commit, the Department of Financial Services has said.

The 10 banks identified are Allahabad Bank (₹418 crore); Andhra Bank (₹1,100 crore); Bank of India (₹1,500 crore); Bank of Maharashtra (₹300 crore); Central Bank of India (₹100 crore); Dena Bank (₹600 crore); IDBI Bank (₹1,900 crore); Indian Overseas Bank (₹1,100 crore); UCO Bank (₹1,150 crore) and United Bank of India (₹418 crore).
To avail themselves of the capital support, the identified PSBs require a tripartite Memorandum of Understanding (MoU) between the government, PSB management and employees of the PSB concerned.
This MoU is to commit all the participants to the agreement for a time bound plan beginning 2017-18 onwards with quantifiable and measurable milestones which can be monitored on quarterly basis, according to the Finance Ministry.

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