Indian Public Sector Banks record highest ever recovery
Indian Public Sector Banks record highest ever recovery

The annual performance of PSBs has shown  continued improvement in banking in terms of highest ever recovery in last quarter, pick-up in credit growth to 13.5%, growth in MSME lending to 10.5%, the highest Provision Coverage Ratio in over five years, and higher operating profits. 

A recovery of Rs. 1,80,000 crore has been targeted in remaining part of current FY, up from Rs. 74,562 crore in last FY.

After deliberating on how to sustain this momentum, a number of action points were identified for implementation in remaining part of current FY.

Earlier in January, 2018, the government had announced details of re-capitalisation of PSBs which were accompanied by a strong reforms package across six themes. The reform agenda was aimed at EASE - Enhanced Access and Service Excellence, focusing on six themes of customer responsiveness, responsible banking, and credit off take, PSBs as Udyami Mitra, deepening financial inclusion & digitalisation and developing personnel for brand PSB.  

Now, the government intensifies its efforts for EASE and financial inclusion. The banks are advised to modernize more branches to enable self-service for customers in digital mode.

RBI has also been quite stringent with regulating the banks for non-compliance with its directions on Income Recognition and Asset Classification (IRAC) norms, stressed assets etc.

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