UCO Bank staff unions sign MoU to implement turnaround plan

UCO Bank employees and officers' unions signed a Memorandum of Understanding (MoU) with the management with some conditions for implementing its turnaround plan, an official said on Wednesday.

"The management of the bank, the employee unions and officers associations commit by this MoU that they take responsibility collectively for successful implementation of the turnaround plan," a statement from the unions said.

"It is understood and agreed that there shall be no cut in financial benefits available to employees and officers," it added.

UCO Bank Employees' Association General Secretary Kamal Kr. Chatterjee said the unions agreed to sign the MoU in view of the need for capital infusion by the government for undertaking a turnaround plan to be implemented collectively at the bank level.

"In case there will be any attempt to incorporate any provision to curtail any of the existing rights and privileges of the employees, or to go for further dilution of the government holding in our bank and closure of branches, our union will be free not to sign the final MoU or agreement relating to revival plan since such details are not known to us," Chatterjee said in a letter to the lender's top management.

The lender on Wednesday also said it is planning to raise Rs 1,000 crore from Life Insurance Corporation of India (LIC), the country's largest insurer, through issuance of Tier-2 bonds.

"...a proposal has been placed before the board seeking its approval for issue of Tier-2 bonds for inclusion in Tier-2 capital of face value of Rs 10 lakhs each aggregating to Rs 1,000 crore to LIC of India. We have this day placed the above proposal before the board by circulation," the lender said in a stock exchange filing.

The bank's capital adequacy ratio stood at 10.60 per cent at the end of December quarter this fiscal against 10.49 per cent in the September quarter.

Government shareholding in the bank was 65.92 per cent at the end of December 31, 2016.

--IANS

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