Press Information Bureau

Government of India

Ministry of Finance

08-May-2012 18:52 IST

Government Advises PSBS and Public Sector Insurance Companies to Make an Action Plan for Turn Around of Their Loss Making Branches

The Public Sector Banks (PSBs) and Public Sector Insurance Companies are governed by their Board driven policies. Expansion or closure of branches of these institutions is decided by their Board in accordance with the guidelines laid down by the regulator.

However, the Government, as a promoter shareholder, has recently advised PSBs and Public Sector Insurance Companies to make an action plan for turnaround of their loss making branches. As regards financial inclusion campaign of Government of India, the banks have been advised to meet all the targets of financial inclusion which remains the priority of the Government.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Rajya Sabha today.

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DSM/Hb

Government advisory on turnaround plans for loss-making branches urges public banks to prepare action plans and meet inclusion targets. Government advised Public Sector Banks and Public Sector Insurance Companies to prepare turnaround plans for loss-making branches while affirming that branch expansion or closure decisions remain Board-driven and must follow regulator guidelines; banks were also reminded to meet financial inclusion targets.