"We are not averse to sign the MoU (memorandum of understanding). But we should know the provisions of MoU before committing ourselves," C.H. Venkatachalam, General Secretary, AIBEA, told IANS.
"SBI Caps have not given any detail about the bank wise action plan. Some banks managements want the unions to agree. But agree to what is not spelt out," Venkatachalam said.
He said way back in 2002 when Indian Bank was in serious financial trouble, the union had signed an agreement to forgo some of the employee benefits-like leave travel allowance, overtime allowance and others.
The Indian Bank management had agreed that top officials will not use air travel, officers would not claim travelling allowance and such things, Venkatachalam added.
"Now there is no information as to the contents of the proposed MoU," he said.
The central government in a letter to the 10 bank heads had listed out five parameters under which the milestones would be fixed for capital infusion.
These are: (a) active management of non-performing assets (NPA), strengthening of lending and monitoring processes; (b) arranging capital from the market; (c) plan for disposal of non-core assets; (d) divesting stakes in subsidiaries, closure of loss-making domestic and international branches; (e) reduction in operational expenses including employee benefits to would be reversed once the banks turns around.
Venkatachalam said: "Going by the past experience, the banks would turnaround and then start building up bad loans calling for another turnaround with sacrifices by the employees."
The amount of capital to be infused by the government are:
Allahabad Bank (Rs 418 crore), Andhra Bank (Rs 1,100 crore), Bank of India (Rs 1,500 crore), Bank of Maharashtra (Rs 300 crore), Central Bank of India (Rs 100 crore), Dena Bank (Rs 600 crore), IDBI Bank (Rs 1,900 crore), Indian Overseas Bank (Rs 1,100 crore), UCO Bank (Rs 1,150 crore), and United Bank of India (Rs 418 crore).
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.