Turnaround strategies submitted by PSBs

In order to get respective fund infusions, ten public sector banks (PSBs) have submitted their turnaround strategies to the government. In a written reply presented in the Rajya Sabha, Minister of State for Finance Santosh Kumar Gangwar stated, “It has been decided that any future capital infusion in these banks shall be subject to achievement of select agreed upon milestones as per the turnaround plan on a quarterly basis.” 
 
“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,” he added. The PSBs include Bank of India, IDBI Bank, Union Bank, Allahabad Bank, Andhra Bank, Central Bank of India, Dena Bank, UCO Bank, United Bank of India and Bank of Maharashtra.
 
Meanwhile, Indian Overseas Bank is currently in the process of preparing its turnaround plan.

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.