Comments
Asserting that ‘clean banking is the new normal’ for the Indian banking industry, the Government on Thursday said a spate of transformative reforms initiated in the last two years have helped the public sector banks return gradually and steadily to good health.
“The banking system has been rebooted in the last two years. The recognition of bad loans is by and large over,” Rajiv Kumar, Secretary, Department of Financial Services (DFS), said on the occasion of the release of the first ever EASE reforms index report.
Kumar said the creditor-debtor relationship has seen a transformative change due to reforms undertaken in the last two years.
He highlighted that gross non-performing assets (GNPA) of the banking system have come down by Rs 31,000 crore in the first three quarters this fiscal.
Kumar also noted that the provision coverage ratio (PCR) of banks — after the asset quality review — had gone up from 46 per cent to 70 per cent now.
It may be recalled that the government and public sector banks (PSBs) had in January 2018 jointly committed to and launched a common PSB reforms agenda for Enhanced Access and Service Excellence (EASE), comprising 30 Action Points across six themes.
Progress of PSBs against the PSB reforms EASE agenda has been rigorously tracked through a EASE reforms index.
The EASE reforms index measures PSB performance on 140 metrics against the respective benchmarks and offers a mechanism for continuous improvement through transparent reporting on forward looking PSB reform priorities.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.