Public Sector Banks to be ranked on the Basis of Performance

The government will be surveying public sector banks annually on the basis of performance of the bank to the customer satisfaction. Last year the government has initiated this reform agenda for state run lenders termed EASE (Enhanced Access and Service Excellence) and asked them to draw up a board approved strategic vision consistent to their risk-appetite framework.

The finance ministry official said that the financial performance will be accessed on the basis of customer responsiveness, digital platforms, security and financial inclusion. As the government expects that the financial performance of the banks to improve as their bad loans come down. Last month RBI allowed three lenders to come out of the prompt corrective action framework under which some activities were restrained to keep in check

Rajeev Kumar financial service secretary then told the ET that both the government and banks are fully committed towards the reform process and other lenders are also working.

The finance ministry has noted that the recognition exercise for public sector banks is almost over. With restructured standard assets declining from a peak of 7% in March 2015 to 0.59% as September 2018. The PSBs have made record in recoveries as Rs 60, 736 crore in the first half of the current financial year