AIBEA gearing up to turn around 10 weak banks

Chennai, April 6 (IANS) The All India Bank Employees' Association (Aibea) is gearing up with its suggestions on turning around ten weak banks, said a top leader.

"We are preparing with our viewpoints and suggestions to be made in the discussions with the respective banks," C.H. Venkatachalam, General Secretary of Aibea, told IANS late on Wednesday.

"A meeting of the leaders of our unions in these 10 banks will be held in Chennai on April 13 and 14 for this purpose," Venkatachalam said.

"We shall try our best to give positive suggestions to recover bad loans and to reduce expenses so that banks can bounce back to better health," he added.

Contrary to its earlier stand of infusing fresh capital in strong banks, the central government has infused fresh capital totalling Rs 8,586 crore into 10 weak banks subject to commitment to quarterly milestones by bank boards, management, employees and unions, he said.

The government had earlier said it would infuse capital subject to the condition that 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.

According to Venkatachalam, the current thinking is that each bank would submit its turnaround plan to SBI Caps which in turn would study the same and make suggestions if any.

On Aibea signing the agreement for restructuring with the management, Venkatachalam said: "In the original proposal, government wanted us to sign an MoU (Memorandum of Understanding) empowering SBI Caps and managements of banks to finalise an MoU on turnaround and unions to implement it."

"After our taking up with government, now, it is agreed the final MoU on turnaround will be discussed with unions before it is finalised. The MoU also includes a new clause that the interests of the employees and officers will be kept in mind while finalising the... document. So we have signed the present MoU," Venkatachalam said.

"We may have differences with the government on some of their policies. We may have differences with the management on some of our demands. But we have absolutely no problem in working for the betterment of our banks."

"The public sector banks deal with people's money and these banks therefore belong to the people and the nation. We are committed for the successful performance of our banks and in their turnaround," Venkatachalam added.

(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)