Money & Banking

'PSU banks can be a catalyst for a $5-trillion economy with policies in place'

Our Bureau New Delhi | Updated on September 13, 2019 Published on August 18, 2019

Public sector banks (PSBs) held a consultative and ideation process with their branch heads across the country over the weekend to identify the issues and challenges faced by branches and how to improve their performance.

This comes in the backdrop of PSBs ceding market share to their private sector bank counterparts over the last few years.

The two-day exercise was undertaken as part of a bottom-up approach to shape policies so that PSBs can act as a catalyst in making India a $5-trillion economy.

Union Bank of India MD and CEO Rajkiran Rai G said: “This exercise is to understand the gaps in our products, processes and why we are not able to reach out to everyone who needs credit. Some of the suggestions which have come are really good. The objective is to align the bank’s priorities with the national priorities.”

Referring to the centralisation of agriculture credit at Union Bank through 43 centres, which currently cover 700 branches, Rai said branch managers want more rural branches to be linked to these centres. The managers want branches to be not just delivery centres but also knowledge centres so that farmers can get updated knowledge on new technology, equipment, new ideas and talk to specialists.

“Our existing products are not matching up to the requirement of start-ups. Start-ups have fluctuating cash flows but we are very rigid on our instalments. There should be some kind of restructuring in fixing the instalments and all that. Suggestions have come in this regard,” he added.

Commenting on the outcome of the meeting held for 37 regional business offices at 30 centres under the Delhi circle, PK Gupta, MD, SBI, said the discussion helped in simplifying the processes and fine tuning the products.

“We have got several ideas from our branch managers. One such idea is how could we further smoothen the sanctioning process for 59 minutes loan that is now available for MSMEs,” he said.

AK Das, Executive Director, Bank of India, said, “Several topical themes such as: Digital payments, corporate governance in PSBs, credit for MSMEs, retail, agriculture, export credit, establishing financial grid and enabling bank credit towards a $5-trillion economy were discussed during the meet with a view to chart out specific roadmap for PSBs”.

Published on August 18, 2019
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