Ranking of the Public Sector Banks to be Judged on the Basis of their Performance

One of the latest news for today is the ranking of the Public Sector banks which would now be performance based. The basic parameters on the basis of which the banks would be ranked will include financial inclusion, customer responsiveness, and most importantly security. An annual survey will be carried out in the public sector banks to rank them according to them according to their capabilities which would range from profitability to satisfaction among the customers. The previous year, the government initiated its reforms agendas for the state-run lenders named as EASE-Enhanced Access and Service Excellence – which motivated them to draw up a board-approved strategy with a consistent vision to showcase their risk-free appetite framework.     
Here we will come out with the EASE survey in this budgetary, which will evaluate banks performances as per their working criteria. This will be done annually and will reap in a spirit of competitiveness among the lenders, said a senior finance ministry official.
The government is expecting the financial performance of banks to improve with every passing year as their bad loans declined. Last month, the Reserve Bank of India allowed three lenders to come out of the prompt corrective action framework, under which some of the activities that they carried were restrained. 
Financial services secretary Rajiv Kumar had told ET that both the government as well as the banks are fully committed towards the reforming process and other lenders are also working towards experiencing faster recovery. 
The ministry of finance had noted that the recognition exercise for public sector banks is almost at the verge of being over, with having restructured standard assets declining from a peak of 7% in March 2015 to 0.59% as of September 2018. PSBs have made a stupendous record in recovering  Rs 60,726 crore in the first half of the reigning financial year, which is more than double the amount recovered over the corresponding period last year, said Kumar. The government will also charge the last tranche of additional capital of Rs 41,000 in state-run lenders to strengthen their capital base. This would greatly enhance the total recapitalization in the coming financial year from Rs 1.06 Lakh crore to Rs 65,000 crore. The ministry of finance had said that the net non-performing assets of the banks owned by states have started to decrease after March 2018, registering a droplet of Rs 23,860 crore in the first half of the reigning financial year.