Published on 20/03/2017 10:35:16 AM | Source: Dion Global Solutions Ltd.

Government to infuse fresh capital in 10 weak banks: AIBEA

Posted in Economy News | #Economy #Banking Sector #SBI

A top leader of All India Bank Employees' Union (AIBEA) has said that the central government has decided to infuse fresh capital totalling Rs 8,586 crore into 10 weak banks subject to commitment to quarterly milestones by bank boards, management, employees and unions. Commenting on the issue, AIBEA General Secretary C.H. Venkatachalam told the media, “SBI Caps will draw a bank wise action plan based on which a tripartite agreement between the government, bank management and employee unions will be signed committing themselves towards certain milestones.”

"The central government has written to the heads of 10 banks indicating the amount of fresh capital it would infuse during FY2017. But the infusion is subject to a tripartite agreement between the central government, banks and the unions for a time bound turn around programme," he added. He also said that the government has said that the tripartite Memorandum of Understanding (MoU) is to commit all the three parties to specified and quantifiable milestones to be measured on quarterly basis.