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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