New Delhi: Union finance minister Piyush Goyal on Thursday promised all possible help to 11 public sector banks to come out of RBI’s ‘Prompt Corrective Action’ due to their deteriorating financial health.
Mr Goyal met with heads of 11 banks which have been placed by the RBI under Prompt Corrective Action (PCA) to find a solution to their problems.
Under the PCA, banks face restrictions on distributing dividends and remitting profits.
Besides, the lenders are stopped from expanding their branch networks and need to maintain higher provisions. The owner may be asked to infuse capital into the lender.
Mr Goyal said that during the meeting “every banker spoke of solutions going beyond history.”
“Over the next few days we will ensure that the Central government gives every possible support to further strengthen the resolve of these banks to come out of PCA framework as quickly as is possible,” said Mr Goyal after the meeting.
He said the meeting was “very useful” to understand what has transpired over the last 12-13 years in the banking system. “I am extremely confident banks will be able to overcome legacy issues in a short period of time. They will be able to serve common man through more aggressive banking, maintaining higher standards of ethics and integrity,” said the minister. “...The 11 banks were represented at the highest level. Every one of the bankers spoke of solutions going beyond history,” he said.
Mr Goyal was earlier this week given temporary charge of the finance ministry. The 11 banks under PCA are Dena Bank, Allahabad Bank, UBI, Corporation Bank, IDBI Bank, UCO Bank, BoI, CBI, IOB, OBC and Bank of Maharashtra.
