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10 PSU banks submit turnaround plans

Indian Overseas Bank is currently in the process of preparing its turnaround plan

Press Trust of India  |  New Delhi 

10 PSU banks submit turnaround plans

As many as 10 state-owned banks, including Bank of India, and Union Bank, have submitted their turnaround plans to the government, which is a pre-requisite for getting fund infusion, Parliament was informed on Tuesday.

Allahabad Bank, Andhra Bank, Central Bank of India, Dena Bank, Uco Bank, United and Bank of Maharashtra are the other public sector lenders who have submitted their plans.

Indian Overseas Bank is currently in the process of preparing its turnaround plan, said Minister of State for Santosh Kumar Gangwar in a written reply in the Rajya Sabha.

“It has been decided that any future capital infusion in these shall be subject to achievement of select agreed upon milestones according to the on quarterly basis,” the minister said.

A monitoring mechanism has been put in place, whereby quarterly performance of these would be monitored by SBI Capital Markets, who in turn would keep the Department of Financial Services informed about the same.

that will not be able to deliver on the agreed upon for a period of two years will be identified as eligible for alternative recourse," Gangwar added.

During recapitalisation exercise undertaken last fiscal year, the government had decided that 25 per cent of the total capital requirement of (Rs 8,586 crore) will be allocated after achievement of benchmarks set up for select parameters. There are 21 public sector

First Published: Wed, July 26 2017. 03:01 IST