Shri Pankaj Jain, Additional Secretary, Department of Financial Services, Shri Amit Agrawal, Additional Secretary, Department of Financial Services & Chairman IBA, Shri Rajkiran Rai G., were also present at the event.
.1 Canara Bank
• Second runner-up in the Institutionalising Prudent Banking
theme
• MD & CEO – Mr LV Prabhakar
• Integration of IT-based risk-scoring and categorization system
with key internal IT systems such as CBS, loan management system and internal
credit rating system
• Accelerated recovery on e-auctioning platforms with 100% of
assets eligible for recovery listed on such platforms as of Mar'21
1.2 Punjab National Bank
• Runners-up in two theme-wise awards –
o Governance & Outcome centric HR;
o Institutionalizing Prudent Banking
• Second runner-up in the best improvement category
o 42% improvement over baseline
• MD & CEO – Mr CH.S.S. Mallikarjuna Rao
• 100% coverage of loans, including retail and small ticket MSME
customers in EWS
• 95% officers in key business impacting roles with very high
measurability levels
• Robust Succession planning for the key roles and IDP creation
for potential successors
1.3 Indian Bank
• Winner in the best improvement category
o 56% improvement over baseline
• MD & CEO – Smt. Padmaja Chunduru
• Completed setup of capabilities across people, processes and
systems to drive end-to-end digitization of retail and MSME loans, such as
tie-ups with fintechs covering 8 key use-cases
• Rolled-out analytics-based models for customer-need driven
proactive credit offers
• Instituted key collections capabilities such as dedicated
collections officers and tie-ups with call centers to drive focused efforts
•
Activated all five digital channels during the year for
origination of loan requests from retail and MSME customers
1.4 Union Bank of India
• Winner in theme-wise awards
o Governance & outcome-centric HR
o Deepening Financial inclusion & customer protection
• Second runner-up in theme-wise awards
o Smart lending
o tech-enabled ease of banking themes
• First runner-up in best improvement category
o 47% improvement over the baseline
• Second runner-up for the EASE Reforms Index Award 2021
• MD & CEO – Mr. Rajkiran Rai G.
• Implemented a scientific and digitalised Performance Management
System with high APAR measurability levels for more than 95% of Bank officers
• Set up of IT-based HR Deployment Decision Support System with
best in class features and functionalities for postings and transfers
• Best bank on EASE cyber-security maturity framework
• First Public sector bank to implement end-to-end digitalisation
of MSME credit limit renewals with approximately ₹3,000 crore of MSME
loans processed in a straight through manner in FY’21
• >70% long-term agri loans processed via loan management
system
1.5 Bank of Baroda
• Winner in theme-wise awards
o Smart Lending,
o Institutionalizing Prudent Banking themes
• First Runner up in theme-wise awards o Tech-enabled ease of
banking
• Second runner-up
o Deepening Financial Inclusion and Customer Protection
• First runner-up for the EASE Reforms Index Award 2021
• MD & CEO - Mr. Sanjiv Chadha
• End-to-end digitalization of credit delivery to retail customers
with more than 1,20,000 personal loans sanctioned instantaneously in H2 FY’21
•
End-to-end digitalization of credit delivery to MSME customers
with more than 1,15,000 Shishu Mudra loans sanctioned in less than 3 days in H2
FY’21
• 60% loans sanctioned using analytics on existing customer data,
partnerships and dedicated marketing officers
• More than 95% loans covered through EWS
• Best-in-class adoption of digital channels with approximately
80% financial transactions undertaken through such channels
• Best-in-class enrolment rate for PM Schemes for life insurance
and personal accident insurance
1.6 State Bank of India
• Winner in theme-wise awards
o Tech-enabled Ease of banking
• First runner-up
o Smart Lending
o Deepening Financial Inclusion and Customer Protection themes
• Second runner-up
o Governance and Outcome-centric HR
• Overall winner of the EASE Reforms Index Award 2021
• Chairman - Mr. Dinesh K Khara
• At-scale end-to-end digitization of retail credit with more than
₹24,000 crore of
personal loans sanctioned instantaneously, leveraging partnerships with FinTech
players
• More than ₹34,000 crores of retail
loans originated through digital channels such as SMS, missed call, call
center, mobile banking and internet banking platforms
• Pioneered centralized tracking of waiting time and transaction
time covering more than 65% transaction-intensive metro and urban branches for
improved customer experience
• Best-in-class service offerings on mobile app, with highest
adoption rate across credit and non-credit products
• Instituted design of specialized career paths covering
approximately 75,000 employees of the Bank under Job Family initiative
• Implemented a scientific and digitalised Performance Management
System with more than 85% of APAR scores getting auto populated from Bank's IT
systems
• More than 6.5 crore eligible customers enrolled under micro life
insurance and micro personal accident insurance schemes
Public Sector Banks have reported healthy profits and have accelerated on technology-driven reforms. These banks have reported a profit of Rs. 31,817 crore in FY21 as compared to a loss of Rs. 26,016 crore in FY20. This is the first year when PSBs have reported profit after five years of losses. Total gross non-performing assets stood at Rs. 6.16 lakh crore as of March 2021 - a reduction of Rs. 62,000 crore from March 2020 levels.
Digital lending
·
Credit@click was a flagship
initiative under EASE 3.0. Nearly 4.4 lakh customers have been
benefitted through such instantaneous and simplified credit access.
·
PSBs have setup mechanism for
customers where they can register loan requests 24X7 through digital channels such as Mobile and Internet
banking, SMS, missed call and call centre. In FY21, PSBs have collectively
disbursed Rs. 40,819 crore of fresh personal, home and
vehicle loans through leads sourced from such digital channels.
·
The top 7 PSBs have built analytics
capabilities through the setup of dedicated analytics teams and IT
infrastructure to proactively offer loans to its existing customers. Such loan
offers were generated using the existing customer transactions data within the
banks. In FY21, Rs. 49,777 crore of fresh retail loan
disbursements were made by the top 7 PSBs based on these credit offers.
·
PSBs have also extensively used
external partnerships and dedicated marketing salesforce network for the
sourcing of retail segment and MSME segment loans. Sourcing from such channels
has been 9.1 lakh loans in FY21.
Mobile/Internet banking and customer service
·
Nearly 72% of financial
transactions happening at PSBs is now happening through digital
channels. PSBs are now offering services across call centres,
Internet banking, and Mobile banking in 14 regional languages such
as Telugu, Marathi, Kannada, Tamil, Malayalam, Gujarati, Bengali, Odia,
Kashmiri, Konkani, Hindi, Punjabi, Assamese for the ease of customers.
PSBs have recorded a phenomenal growth in their
performance over four quarters since the launch of EASE 3.0 Reforms Agenda. The
overall score of PSBs increased by 35% between March-2020 and March-2021, with
the average EASE index score improving from 44.2 to 59.7 out of 100.
Significant progress is seen across six themes of the Reforms Agenda, with the
highest improvement seen in the themes of ‘Smart Lending’ and
‘Institutionalising Prudent Banking’.
What is EASE 4.0?
EASE 4.0 – Tech-enabled, simplified, and collaborative banking
The next edition of EASE reforms
i.e. EASE 4.0 aims to further the agenda of customer-centric digital
transformation and deeply embed digital and data into PSBs' ways of working.
EASE 4.0 is a common reform agenda for Public Sector Banks (PSBs)
aimed at institutionalizing clean and smart banking.
Key Features of EASE 4.0
-
Data enabled agricultural credit : Dial a loan for Agri loans -
Smart Lending: Credit@click ; Dial-a-loan |
EASE has become the cornerstone of reforms in PSBs. The
institution of the comprehensive index has catalysed accelerated implementation
of several initiatives and has injected greater customer centricity in PSBs’
business model and processes. PSBs have fundamentally re-oriented their ways of
working to align with EASE methodology and have made concerted efforts to
deep-root reforms and maximise the value derived from them.
The next edition of EASE reforms i.e., EASE 4.0 aims to further
the agenda of customer-centric digital transformation and deeply embed digital
and data into PSBs’ ways of working. Two new themes have been
introduced to deliver on these objectives.
New Age 24x7
banking with resilient technology has been introduced to ensure uninterrupted
availability of banking services by ensuring
24X7 availability of select banking
channels, improving the reliability
of technology platforms, and aligning internal
processes in the PSBs to deliver such services.
Collaborative
banking for synergistic outcomes aims to
maximise synergies through collaboration between PSBs and with broader
financial services ecosystem such as NBFCs for the coordinated handling of
co-originated loans.
In addition to the above new themes, several other new reforms
will be added to existing themes such as increased use of digital and data for
Agri financing through partnerships with third parties for alternate data
exchange, driving impetus on digital payments in semi-urban and rural areas,
at-scale adoption of doorstep banking services for PSB customers, etc.
With the amalgamation of 13 PSBs into 5 PSBs now successfully complete, EASE 4.0 sets the agenda and roadmap to transform all PSBs into digital-attacker banks working hand-in-hand with key constituents of the financial services ecosystem to offer industry-best customer experience.
RECAP
OF EASE REFORMS: EASE1.0; EASE 2.0 AND EASE 3.0 – The Journey of PSB Reforms
EASE Agenda
What is EASE ?
PSB reforms agenda – EASE (Enhanced Access and Service Excellence) was launched based on the recommendations made by PSB Whole Time Directors (WTDs) and senior executives in PSB Manthan in November 2017. It encapsulates a synergistic approach to ensure prudent and clean lending, better customer service, simplified and enhanced credit, and robust governance and HR practices. The Reforms Agenda is pursued through a unique Reforms Index that enabled objective assessment of progress on all key areas in PSBs — viz., governance, prudential lending, risk management, technology- and data-driven banking, and outcome-centric HR — as well as enhanced transparency and accountability in the wider financial ecosystem.
EASE Reforms Agenda:
1.
It was launched in January 2018 jointly by the
government and PSBs.
2.
It was commissioned through Indian Banks’ Association
and authored by Boston Consulting Group.
3.
EASE Agenda is aimed at institutionalizing CLEAN and
SMART banking.
4.
The Index measures performance of each PSB on 120+ objective
metrics
EASE 1.0:
The EASE 1.0 report showed significant improvement in PSB
performance in resolution of Non-Performing Assets (NPAs) transparently.
The first edition of the EASE program pertaining to FY19 aimed
at laying the foundation for themes such as Customer Responsiveness by enabling
banking from the comfort of home and mobile and grievance redressal,
responsible banking through the setup of dedicated Stressed Assets Management
Vertical (SAMV) for rigorous monitoring of large-value stressed loans, improved
governance and financial stability through institutionalising risk appetite
frameworks and riskbased pricing, near-home banking by providing branch
equivalent services through Bank Mitras, and enhanced micro-insurance coverage
ensuring financial inclusion, and developing personnel for Brand PSBs through
initiatives such as the implementation of Performance Management System (PMS).
( Please click on the
following link for detailed read on: Enhanced Access & Service Excellence (EASE) Reforms
for Public Sector Banks
http://rakeshkhareblogs.blogspot.com/2020/03/enhanced-access-service-excellence-ease.html
)
EASE 2.0:
EASE 2.0 builds on the foundation of EASE
1.0 and introduces new reform Action Points across six themes to make reforms
journey irreversible, strengthen processes and systems, and drive outcomes.
The six themes of EASE are:
1.
Responsible
Banking.
2.
Customer
Responsiveness.
3.
Credit
Off-take.
4.
PSBs
as UdyamiMitra (SIDBI portal for credit management of MSMEs).
5.
Financial
Inclusion & Digitalisation.
6.
Governance
and HR.
EASE Reforms Index:
·
The
Index measures performance of each PSB on 120+ objective
metrics.
·
The
Index follows a fully transparent scoring methodology, which enables
banks to identify their strengths as well as areas for
improvement.
·
The
goal is to continue driving change by encouraging healthy competition
among PSBs.
The second edition of the
EASE program for CLEAN and SMART banking was launched for FY20 to further build
on the foundation of EASE 1.0. It has been instrumental in further
systematically addressing root causes of weaknesses in PSBs effected through
hard-wiring of sound IT systems and processes. It has set up comprehensive Loan
Management Systems (LMS) for faster processing and tracking, introduced Early
Warning Signals (EWS) systems and specialised monitoring for timebound action
in respect of stress, put in place focussed recovery arrangements, and
esablished outcome-centric HR systems. The reforms have equipped Boards and
leadership for effective governance. Further, it has enabled banking from home
and mobile through an expanded bouquet of services, including enhanced regional
languages availability.
( Please click on the
following link for detailed read on: EASE 2.0 Banking Reforms Index - Performance of Public
Sector Banks from March 2018-2020. http://rakeshkhareblogs.blogspot.com/2020/09/ease-20-banking-reforms-index.html#more)
EASE 3.0 — Smart, Tech-enabled Banking
for Aspiring India
Key Reform Action Points in EASE 3.0 include:
- Dial-a-loan: Digitally-enabled doorstep facilitation for initiation of
retail and MSME loans. Customers will have the facility to register loan
requests through digitally-enabled channels
- Customer-need driven credit offers by larger PSBs to existing
customers through analytics, e.g., for EMI on expenses like
holidays/school-fees/jewellery/consumer durables, home loan takeovers,
loan-against-property post home loan closure, working capital enhancement
based on sales jump
- Partnerships with FinTechs and E-commerce companies for customer-need driven credit
offers
- Credit@click: End-to-end digitalised, time-bound retail and MSME lending by
larger PSBs, leveraging Account Aggregators, FinTechs and
PSBloansin59minutes.com
- Cash-flow-based MSME credit by larger PSBs, using FinTech, Account Aggregator and other
third-party data and transactions-based underwriting models
- Tech-enabled agriculture lending
- Palm banking: End-to-end digitalised delivery of a full bouquet of financial
services in regional languages and with industry-best service quality
EASE
Banking Outlets:
On-the-spot banking at frequently visited places such as train stations, bus
stands, malls, hospitals, etc. through paperless and digitally-enabled banking
outlets and kiosks.
The third edition of the EASE reforms (EASE 3.0) was launched in
FY21 to help catalyse accelerated adoption of customer-centric digital
transformation initiatives across PSBs.
( Please click on the following link for
detailed read on: Finance Minister unveils EASE Roadmap for Banking of the Future
EASE 3.0 Reforms : https://yourcareerheights.com/?p=4116)
Source:
https://pib.gov.in/PressReleasePage.aspx?PRID=1748922; http://164.100.117.97/WriteReadData/userfiles/EASE%20awards_for%20PIB%20(1).pdf
http://164.100.117.97/WriteReadData/userfiles/EASE%204.0.pdf
http://rakeshkhareblogs.blogspot.com
& https://yourcareerheights.com/?p=4116
