The finance ministry has informed Parliament that as many as ten public sector banks have submitted their turnaround plans with the government.
In a written reply to the Rajya Sabha, minister of state for finance Santosh Gangwar also clarified that the North Block would keep a tab on these banks, any capital infusion in the future would be subject to their quarterly performances.
In an interview to CNBC-TV18, R Subramaniakumar, MD & CEO of Indian Overseas Bank (IOB) spoke about the turnaround plan and the latest happenings in the bank.
Subramaniakumar said that IOB has submitted the turnaround plan to government.
We are working towards capital conservation for the bank, said Subramaniakumar.
IOB is focussing on re-balancing the entire credit portfolio.
He further said that mid-corporate has been bank’s strength. Jewellery loan has been another area of strength for the bank, he added.
On deposit front, he said low cost deposits have been improving and are at 35 percent currently. He expects low cost deposits to touch 40 percent by FY18.
Speaking about capital infusion, he said annual general meeting (AGM) has given an approval to raise fund.
Watch accompanying video for more details.
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