Ten Public Sector Banks Have Submitted Turnaround Plans Till Now
IDBI Bank, Union Bank and Bank of India feature on the list.
Ten public sector banks have submitted their turnaround plans to the government, which is a requirement for getting their fund infusions, the Parliament of India was informed on Tuesday.
In a written reply to the Parliament, the Minister of State for Finance Santosh Kumar Gangwar, named the ten state-owned banks which were to receive the quarterly capital infusion.
The 10 state-owned banks who have submitted their plans are:
- Bank of India
- IDBI Bank
- Union Bank
- Allahabad Bank
- Andhra Bank
- Central Bank of India
- Dena Bank
- UCO Bank
- United Bank of India
- Bank of Maharashtra
It has been decided that any future capital infusion in these banks shall be subject to achievement of select agreed upon milestones as per turnaround plan on quarterly basis.Santosh Kumar Gangwar, Minister of State for Finance
Indian Overseas Bank is currently in the process of preparing its turnaround plan, Gangwar added.
A monitoring mechanism has been put in place, whereby quarterly performance of these banks would be monitored by SBI Capital Markets, who in turn would keep the Department of Financial Services informed about the same.
"Banks that will not be able to deliver on the agreed upon turnaround plan for a period of two years will be identified as banks eligible for alternative recourse," Gangwar added.
During recapitalisation exercise undertaken last fiscal, the government had decided that 25 per cent of the total capital requirement of banks (Rs 8,586 crore) will be allocated after achievement of benchmarks set up for select parameters.
There are 21 public sector banks in the country.
