Close down IB, UCO, UBI; Privatise BoB, SBI, Corp., Oriental: CII New Delhi, Dec 15 (UNI) A Task Force of the Confederation of Indian Industry (CII) has recommended closure of three nationalised banks, including the Indian Bank, and privatisation of State Bank of India and three others. Strongly opposing a proposal for yet another recapitalisation of the Indian Bank, United Bank of India and UCO Bank, the Task Force on Non-Performing Assets (NPA) in its report released Wednesday said any move to restructure these banks ''is akin to artificial respiration. It will not solve the problem and continue soaking up scarce tax payer funds from a fiscally constrained exchequer.'' The Task Force was headed by Mr K.V. Kamath, Managing Director and CEO of ICICI. Talking to reporters, Mr Kamath said the Task Force did not however ascertain to what extent the burden of non-performing assets would come down following closure of the three sick banks. Recapitalisation of these banks have been done twice already and the Verma Committee set up by the government suggested yet another restructuring at a cost of Rs 55 billion. However, according to the CII Task Force the three three banks ''are in a terrible shape in terms of any banking yardstick and beyond restructuring'' and there was no guarantee that these would not slip into the red again. The net cost of closing down the banks would be Rs 74.34 billion Indian Bank Rs 27.23 billion United Bank Rs 25.53 billionand UCO Bank Rs 21.58 billion the task force says. The closure should be based on the principles that depositors' money would not be harmed and employees would get good severance pay. The process should be carried out in three phases -- moving deposits to good banks, paying out to employees except ten to 15 per cent of staff needed in the hiatus and selling properties and branches and paying out residual staff. On the privatisation proposal, CII President Rahul Bajaj, who was also in the 15-member Task Force, said under globalisation the government did not have to be in the banking business. It should get out gradually. On the criteria for suggesting Bank of Baroda, Corporation Bank, Oriental Bank of Commerce and State Bank of India for privatisation, Dr Omkar Goswami, another task force member, said these were already listed in the market, besides having capital adequacy, solvency ratio, low equity ratio and maximum passible spread. ''Also, good banks might like to be privatised,'' Mr Bajaj said. Regarding Asset Reconstruction Companies (ARCs), the CII report argues that these must never be used to bail out weak banks. Instead, ARCs need to be structured very carefully to assist relatively better performing banks and financial institutions. The report also suggests wide ranging reforms on bankruptcy restructuring, Debt Recovery Tribunals and liquidation processes. Instead of getting indefinite stay on creditors' claims as is the case at present the BIFR should act like a facilitator to decide cases within 180 days. -x-