Public Sector Banks to be Ranked According to their Performance
The Government will survey the Public Sector Banks annually and will rank them on their performance parameters. The parameters include digital platforms, customer responsiveness, financial inclusion, and security.
The government expects that the performance of the banks should improve as their bad loans will go down. And in the last month, the RBI allowed the three lenders to come out of the prompt corrective action framework, under which some of their activities were curbed.
Rajiv Kumar, financial services secretary, had told ET that both the banks and government are fully committed towards their reform process and the other lenders are also working for their faster recovery; and to strengthen their capital base, the government will infuse the last tranche of additional capital of Rs 41,000 to the state-run lenders.
According to the finance minister, the gross non-performing assets of state-owned banks were declining after March 2018, with a drop of Rs 23,860 crore in the first half of the current financial year.