This talent pool will have senior-level domain experts from all public sector banks (PSBs) and build peer-to-peer collaboration by sharing technology, operations and people capabilities, a senior bank executive said. “This team will work closely with all the banks and guide, guide and coach the banks to achieve the set goals,” he added.
The broad agreement is that
will lead this initiative for Chennai and for Bengaluru-based banks, and Delhi-Kolkata PSBs. For Mumbai-Pune Bank, and will jointly lead the programme.
Another executive aware of the development said, “Banks will identify areas of external collaboration, including e-commerce, account aggregators and external digital platforms, through these clusters.”
In April, after the PSBs brainstorming conference, the government asked PSBs to establish a three-year roadmap for their business strategy and suggested that they explore greater collaboration, with larger banks sharing best practices with smaller ones and Guide them in areas where they need expertise.
Accordingly, six groups were formed to look into and suggest measures for key focus areas including customer service, digitisation, human resource promotion, governance and collaboration.
PSBs have seen a change in the last few years. They have written off ₹ 5.17 lakh crore of non-performing assets and ₹ 1.24 lakh crore since FY15. gross NPA The proportion of PSBs has increased from 14.6% as on March 31, 2018 to 7.4% as on March 31, 2022, while the net NPA ratio has gone up from 8% to 2%. Stressed assets have come down from 15.3% to 8.7%.