Transformation of Public Sector Banks in India: The Challenges in the Journey

Transformation of Public Sector Banks in India crisply captures the different phases of the journey of the transformation of PSBs in India, beginning with the nationalisation of banks. It maps the developments and challenges of PSBs in expanding the outreach to the unbanked hinterland to fulfil the socio-economic needs of the financially excluded segments. The resilience of PSBs is evident, more particularly in adopting technology, business process reengineering, risk management, asset quality management and other significant post-reform measures. The challenge to reinvent universally accessible banking services to compete with new generation banks is the reflection of the commitment of PSBs. The changes in the organizational structure, governance, human resource management and leadership developments brought through the seven pronged ‘Indradhanush’ framework and  the Enhanced Access and Service Excellence (EASE)  set of reforms put together provide an insight on the next level of bank reforms.