Nine public sector banks in India may sell stakes in subsidiaries and reduce their corporate loan book under recovery plans submitted to the central bank, the Press Trust of India reported June 1.
These banks are among the 11 lenders under the central bank's prompt corrective action because of poor financial health, and were asked by the Reserve Bank of India in May to submit plans to strengthen their finances and meet capital adequacy norms.
The recovery plans presented to the RBI include cost cutting, reducing their branch network and corporate loan book, selling risky assets and closing foreign branches, the report said.
The RBI has issued prompt corrective actions to Dena Bank, Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank Ltd. UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce and Bank of Maharashtra.
