IBA Draws Plan To Measure Reform Implementation By Public Sector Banks
PSU banks’ implementation of reforms to be measured on six metrics.
The Indian Banks’ Association has drawn a plan for measuring implementation of ‘reforms agenda’ by public sector banks on six specified parameters, which include customer responsiveness, credit off-take and digitalisation.
This assumes significance as the capital infusion in the state-owned banks is directly linked to their performance on reforms front.
In October 2017, the government unveiled a Rs 2.11 lakh crore two-year roadmap for strengthening government owned banks hit by non-performing assets, which includes recapitalisation bonds, budgetary support, and equity dilution.
The IBA has decided to hire a consultant for Measuring implementation of PSB Reforms Agenda - ‘Enhanced Access and Service Excellence’.
PSBs account for 70 per cent of the Indian banking system and play a critical role in the nation’s banking and economic growth landscape, the IBA said while inviting bids from consultants having a minimum turnover of Rs 100 crore in the past two years in India.
The massive recapitalisation of PSBs was approved by the government and it is important to ensure holistic and wide-ranging reforms take place alongside to utilise this capital effectively.Indian Banks’ Association
EASE encompasses a synergistic approach to ensuring prudential and clean lending, better customer service, enhanced credit availability, focus on MSMEs and better governance.
The banks, IBA said, would be monitored and measured on performance in the reforms agenda, which spans across six themes -- customer responsiveness, responsible banking, credit offtake, PSBs as UdyamiMitra, financial inclusion and digitalisation, and ensuring outcomes with regard to human resource practices.