Friday, September 30, 2022

PSBs told to ask branches, how to reach $5 Trillion target

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New Delhi: Now the government has decided to dive deep in search of ideas that will pave India’s way to $5 Trillion economy. The country has set a goal of achieving a $5-trillion economy by 2024-25. The ministry of finance has asked public sector banks (PSBs) to initiate a month-long consultation process with officers starting from branch level to seek ideas and suggestions for achieving the target that is said to be very difficult. The suggestions emanating from this month-long campaign beginning Saturday will also be used as inputs to prepare a road map for the future growth of the banking sector.

Letter from the ministry

In a recent letter written by the ministry to the heads of PSBs, it has been mentioned that the exercise is going to be a bottom-up consultative process from the branch level onwards which will involve discussions at the branch or regional level, state level and national level. The alternate target of the consultation process is aimed at aligning the banking sector with national priorities, stimulating ideas and inculcating a sense of involvement among bankers at the branch level, it said.

Align banking with National priorities

The campaign envisages not only performance review but synchronisation of banking with region-specific issues and their growth potential. It also aims to find out the role of PSBs as active partners in the Indian growth story for the next five years.

It will also find a solution for enhanced ease of living making banks more responsive to customers and challenges before banks and their preparedness in areas such as cybersecurity and data analytics. There will be a focus on raising credit offtake for supporting economic growth credit support to infrastructure and role of the banking sector in doubling farmers’ income and water conservation.

Support green economy & MSMEs

Besides supporting for the green economy, improving education loan and other sectors such as micro, small and medium enterprises (MSMEs) and exports.

In addition, there will be a focus on pushing the digital economy and financial inclusion, it said.

The consultative process will be divided into three stages with the first being at the branch or regional level, followed by the state level. It will culminate with a national-level two-day brainstorming in Delhi.

The campaign comes at a time when the economy is facing headwind and it has slowed to a 5-year low of 6.8 per cent.

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