FinMin plans 16-point ‘KRA’ to push PSBs

  1. Finance Ministry has planned to closely monitor Public sector banks (PSBs) achievements on 16 key performance indicators (KPIs) at the branch, region, State and national level.
  2. This step was taken in the backdrop of PSBs market share declining while that of private banks is rising.PSBs accounted for 63% of the outstanding credit of scheduled commercial banks against 67% as of June-end 2017.
  3. The fall comes in the backdrop of these banks facing asset quality issues since 2015.Further,Non-Banking Financial Companies(NBFCs) are also borrowing from banks and are able to attract customers in spite of higher interest rates.
  4. The 16 KPIs includes indicators such as Credit for infrastructure, Farm sector, Blue economy, Housing, MSMEs, Stand-Up India scheme, Education, Exports, Green economy, Cleanliness activities, Financial inclusion and women’s empowerment among others.
  5. The banks will then be benchmarked against the 18 PSBs’ average.If found lagging,specific action will be taken after consultation at various levels to improve their performance.