United Bank, UCO Bank and Indian Bank plan their revival
United Bank, UCO Bank and Indian Bank chiefs have submitted a revival plan to the banking division.
The plan includes the governments recent decision of pumping in funds for recapitalisation of the banks to help them meet their capital adequacy requirements, finance their voluntary retirement schemes and the creation of asset reconstruction companies to manage their non-performing assets and closure of the loss making branches.
The banking division also met the heads of financial institutions to work out a concerted effort in the industry to curtail non-performing assets by partly financing the setting up of an asset reconstruction company.
This proactive approach seems to be good for the banking and finance industry in the long run as this would help in bringing down the non-performing assets of industry and could also make them better capitalised and more efficient.
However this is not the first time that such plans have been made for these banks. While earlier also plans were made nothing concrete came out of them.
On the other hand if the government is unable to pump in funds due to its tight fiscal position then this whole revival plans stands in jeopardy.
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