Govt Asks Its Nominees On PSB Boards To Review Reform Path

Mostly senior officials from the finance ministry, being the government nominees on bank boards, will give suggestions regarding course correction and periodically review and if required. Further, information to Public Sector Banks (PSBs) will be provide in order to build partnerships and achieve synergistic outcomes. The formation of a common talent pool along with senior level domain experts from all PSBs is also being worked out.

The government directed its nominees to actively review the three-year business reform roadmap of their respective banks. Those nominees are on the boards of state-run banks. This move aim is to make sure that big lenders support smaller banks in certain key areas like loan underwriting, information technology and human resource development. 

According to an official. banks have also been asked to set up cross-functional teams to enable faster implementation of the reform agenda.

Mostly senior officials from the finance ministry, being the Government nominees on bank boards, will give suggestions regarding course correction and periodically review and if required. In addition to that the Indian Banks’ Association has also identified representatives who will oversee bank-specific roadmap. 

Further, information to Public Sector Banks (PSBs) will be provide in order to build partnerships and achieve synergistic outcomes. The lenders will look at operationalising co-lending partnerships, keeping a focus on priority sector areas like home loans and other retail portfolios. This come from the plan discussed during PSB Manthan, held earlier this year.

The co-lending disbursements surged 4.5 times to Rs 2,901 crore during last quarter of 2021-22 from Rs 643 crore a year ago, as per a report submitted by the banks.

The formation of a common talent pool along with senior level domain experts from all PSBs is also being worked out. Whereas the Indian Bank will lead this initiative for Chennai-Bengaluru banks and the Punjab National Bank will be the head for Delhi-Kolkata banks, and for Mumbai-Pune banks. The State Bank of India and Bank of Baroda will spearhead the programme together.