PSBs to focus on 3-yr roadmap to support SMEs, farming under EASE reforms

The roadmap will be based on broad themes of business growth, profitability, risk, customer service, operations, and capability building

Public sector banks (PSBs) would focus on a specific three-year strategic roadmap, and emphasize on supporting small businesses and agriculture under the Enhanced Access and Service Excellence (EASE) reforms agenda.

The next set of reforms EASENext would consist of two key initiatives. One will include common PSB reforms agenda EASE 5.0, and another with a bank specific strategic three-year roadmap based on the individual lender’s business priorities.

Under EASE 5.0, PSBs will continue to invest in new-age capabilities and respond to evolving customer needs, changing competition, and adoption of newer technologies. The next edition of the PSB reforms agenda will also focus on digital customer experience, integrated and inclusive banking, with emphasis on supporting small businesses and agriculture.

Besides this, all PSBs will create a 3-year strategic roadmap that will be based on broad themes of business growth, profitability, risk, customer service, operations, and capability building.

In April, during PSB Manthan, the finance ministry had met PSB chiefs to discuss their strategic three-year roadmap, implementation of base-level reforms, and explore strategies for long-term profitability, Business Standard had earlier reported.

Launching the PSB reforms agenda for the year, prepared in collaboration with Indian Banks Association (IBA), Financial Services Secretary Sanjay Malhotra said that public sector banks now have stronger balance sheets, and must leverage it to significantly increase their competitiveness, according to a statement.

The EASE 5.0 ‘Common reforms agenda’ of EASENext program was launched by Finance Minister Nirmala Sitharaman through video-conferencing, and attended by heads of PSBs.

Unveiling the agenda for PSBs, Finance Minister Sitharaman said EASENext is well-positioned to channel reforms with specific focus on customer centric initiatives. Sitharaman advised banks to focus on customer-first strategy--which can be developed by engaging with customers to understand their needs--and employee development.

Banks must develop robust security mechanisms while upgrading technology initiatives, Sitharaman was quoted as saying. EASENext reforms should bring ease for customers as well as for employees, Sitharaman said.