DEVISE STRATEGY TO TURN AROUND LOSS MAKING BRANCHES, BANKS TOLD

The Government has asked public sector banks (PSBs) to firm up a strategy for turnaround of their loss-making branches.

This was stated by the Finance Minister, Mr Pranab Mukherjee, in a written reply to a Lok Sabha question.

Mr Mukherjee said that banks had conducted a study to ascertain the reasons for incurring losses and have identified low business level, newly opened branches, branches in remote areas as the main causes for such losses.

The Finance Minister said that PSBs are governed by their Board-driven policies and make their own plans with respect to business operations, profitability, productivity etc. The Government's advise to PSBs to frame turnaround strategy came in the wake of it being a promoter shareholder.

SOURCE: http://www.thehindubusinessline.com/industry-and-economy/banking/article3409077.ece