Employee unions of public sector banks meet over govt’s recapitalization plan
Public sector bank employees’ unions have decided to wait before signing a memorandum of understanding with govt and bank managements on recapitalization
New Delhi: Public sector bank employees’ unions have decided to wait before signing a memorandum of understanding with the government and bank managements on recapitalization. The unions met on Friday to discuss the government’s decision to put strict conditions on raising capital.
“While we are open for a turnaround plan on mutually agreeable terms, we cannot sign any MoU without knowing the details which may affect employee benefits. We also want solution to mounting NPA. We will wait for details of MoU before reacting,” said CH Venkatachalam, general Secretary, all India bank employees’ association.
On 16 March, the government announced a second tranche of fund infusion worth Rs8,586 crore in 10 weak PSU banks in the current fiscal, based on their meeting strict conditions.
These include: active bad loan management, arranging capital from the market, a continuing plan for selling non-core assets, shutting money-losing branches and temporarily paring employee benefits, if necessary.