Indradhanush Banking

3/1/2016
Fm:ForSomeYears,BanksAreFacingChallengingTimeButNoCauseOfPanic
Print
PressInformationBureau
GovernmentofIndia
MinistryofFinance
14August201518:59IST
GovernmentAnnouncesPublicSectorBanks(Psbs)RevampPlanAnnouncesAppointmentofMDandCEOOf
Five(5)PsbsAsWellAsNonExecutiveChairmanofFive(5)PSBsSpecificCapitalAllocationofRs.20,088Crore
tobeMadeWithinaMonthasPartofTranche1andTranche2toThirteen(13)PSBsBankBoardBureau(BBB)
to be SetUP Replacing the Appointments Board for Appointment of WholeTime Directors and NonExecutive
Chairman of PSBs and will Start Functioning From 01st April, 2016 a New Framework of Key Performance
Indicators(Kpis)tobeMeasuredforEvaluatingthePerformanceofPsbsAlsoAnnouncedAmongOthers
TheUnionFinanceMinisterShriArunJaitleysaidthatforsomeyears,banksarefacingchallengingtimebutthere
is no cause for panic.Shri Jaitley said that the Government has taken various new initiatives and policy decisions to
revampthePublicSectorBanks(PSBs)andimprovetheiroverallperformance.TheFinanceMinisterwasaddressinga
PressConferenceregardingactiontaken/tobetakentorevampthePSBGsheretoday.TheConferencewasalsoattended
bytheMinisterofStateforFinanceShriJayantSinha,Secretary,DepartmentofFinancialServices(DFS),Dr.Hasmukh
Aadhia and Chief Economic Adviser Dr. Arvind Subramanian and senior officers of the Ministry of Finance among
others.LaterDrAadhiamadeacomprehensiveandselfcontainedpresentationhighlightingthevariouspolicyinitiatives
taken by the Department in last one year and perspective decisions to be taken in near future to overall improve the
performanceofthePSBs.
Detailsofthepresentationmadeontheoccasionisasfollows:
ThePublicSectorBanks(PSBs)playavitalroleinIndiaseconomy.Inthepastfewyears,becauseofavarietyof
legacyissuesincludingthedelaycausedinvariousapprovalsaswellaslandacquisitionetc.,andalsobecauseoflowglobal
and domestic demand, many large projects have stalled. Public Sector Banks which have got predominant share of
infrastructurefinancinghavebeensorelyaffected.IthasresultedinlowerprofitabilityforPSBs,mainlyduetoprovisioning
fortherestructuredprojectsaswellasforgrossNPAs.
ThepresentGovernmenthasputinplaceacomprehensiveframeworkforimprovingPSBs.Mostrecently,wehave
made the announcement of capital allocation by Government for PSBs in the next four years. Announcement of capital
plansforthePSBsisonlyoneofthemanystepstakenbytheGovernment.TheotherstepstakenbyGovernmentareas
follows:
A)Appointments:
TheGovernmentdecidedtoseparatethepostofChairmanandManagingDirectorbyprescribingthatinthesubsequent
vacanciestobefilleduptheCEOwillgetthedesignationofMD&CEOandtherewouldbeanotherpersonwhowouldbe
appointedasnonExecutiveChairmanofPSBs.Thisapproachisbasedonglobalbestpracticesandaspertheguidelinesin
the Companies Act to ensure appropriate checks and balances. The selection process for both these positions has been
transparentandmeritocratic.TheentireprocessofselectionforMD&CEOwasrevamped.Privatesectorcandidateswere
alsoallowedtoapplyforthepositionofMD&CEOofthefivetopbanksi.e.PunjabNationalBank,BankofBaroda,Bank
of India, IDBI Bank and Canara Bank. Three stage screening was done for the MDs position culminating into final
interviewbythreedifferentpanels.
FiveMD&CEOswereappointedearlier.AppointmentsofMD&CEOsoffivemorebanksBankofBaroda,Bank
ofIndia,CanaraBank,IDBIBankandPunjabNationalBankandNonexecutiveChairmanof5banksareannouncedtoday,
http://pib.nic.in/newsite/PrintRelease.aspx?relid=126074
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asperthelistbelow:
MD&CEOs
NameoftheBank Name
Age
PresentPosition
BankofBaroda
PSJayakumar
53yrs
MD & CEO of VBHC Value
HomesPvtLtd.
BankofIndia
M.O.Rego
56yrs
Deputy Managing Director, IDBI
Bank
CanaraBank
RakeshSharma
57yrs
MD & CEO, The Laxmi Vilas
BankLtd
IDBIBankLtd
KishoreKharatPiraji
56yrs
ExecutiveDirector,UnionBankof
India
Punjab National Smt.
Usha 56yrs
CMD,BhartiyaMahilaBank
Bank
Ananthasubramanian
NameoftheBank
BankofBaroda
BankofIndia
CanaraBank
VijayaBank
IndianBank
NonExecutiveChairman
Name
Age
Present/LastPositionheld
RaviVenkatesan
51yrs
IndependentDirector,Infosys
GPadmananbhan
60yrs
RetiredEDofReserveBankofIndia
TNManoharan
59yrs
Director,TechMahindra,PublicHealth
Foundation
GNarayanan
66yrs
RetiredED,IndianOverseasBank
T
C
V 66yrs
RetiredCMD,EximBank
Subramainian
TheCVsofnewlyappointedMD&CEOs/nonexecutiveChairmanareinthedocket.
TheprocessofselectionofNonofficial/IndependentDirectorshasbeenrevampedandmadetransparent.
There are some vacancies of NonOfficial Directors on the Boards of PSBs and we would like to complete the
selectionprocessinthenextthreemonths.TheselectionofnonexecutiveChairmanintheremainingsixPSBswillalsobe
completed in next three months. Also the appointment of MD & CEO in two other banks will also be done as early as
possible
B)BankBoardBureau:
TheannouncementoftheBankBoardBureau(BBB)wasmadebyHonbleFinanceMinisterinhisBudgetSpeechfor
the year 201516. The BBB will be a body of eminent professionals and officials, which will replace the Appointments
Board for appointment of Wholetime Directors as well as nonExecutive Chairman of PSBs. They will also constantly
engagewiththeBoardofDirectorsofallthePSBstoformulateappropriatestrategiesfortheirgrowthanddevelopment.
ThestructureoftheBBBisgoingtobeasfollowstheBBBwillcompriseofaChairmanandsixmoremembersofwhich
threewillbeofficialsandthreeexperts(ofwhichtwowouldnecessarilybefromthebankingsector).TheSearchCommittee
formembersoftheBBBwouldcompriseoftheGovernor,RBIandSecretary(FS)andSecretary(DoPT)asmembers.The
BBB would broadly follow the selection methodology as approved in relevant ACC guidelines. The members will be
selectedinthenextsixmonthsandtheBBBwillstartfunctioningfromthe01stApril,2016.
C)Capitalization:
Asofnow,thePSBsareadequatelycapitalizedandmeetingalltheBaselIIIandRBInorms.However,theGovernment
ofIndiawantstoadequatelycapitalizeallthebankstokeepasafebufferoverandabovetheminimumnormsofBaselIII.
Wehave,therefore,estimatedhowmuchcapitalwillberequiredthisyearandinthenextthreeyearstillFY2019.Ifwe
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excludetheinternalprofitgenerationwhichisgoingtobeavailabletoPSBs(basedontheestimateofaverageprofitofthe
last three years), the capital requirement of extra capital for the next four years up to FY 2019 is likely to be about
Rs.1,80,000crore.Thisestimateisbasedoncreditgrowthrateof12%forthecurrentyearand12to15%forthenextthree
years depending on the size of the bank and their growth ability. We are also presuming that the emphasis on PSBs
financingwillreduceovertheyearsbydevelopmentofvibrantcorporatedebtmarketandbygreaterparticipationofPrivate
SectorBanks.
Out of the total requirement, the Government of India proposes to make available Rs.70,000 crores out of budgetary
allocationsforfouryearsasperthefiguresgivenbelow:
(i)
FinancialYear201516
Rs.25,000crore
(ii)
FinancialYear201617
Rs.25,000crore
(iii)
FinancialYear201718
Rs.10,000crore
(iv)
FinancialYear201819
Rs.10,000crore
Total
Rs.70,000crore
WeestimatethatPSBsmarketvaluationswillimprovesignificantlydueto(i)farreachinggovernancereforms(ii)
tight NPA management and risk controls (iii) significant operating improvements and (iv) capital allocation from the
government. Improved valuations coupled with value unlocking from noncore assets as well as improvements in capital
productivity,willenablePSBstoraisetheremainingRs.1,10,000crorefromthemarket.Moreover,thegovernmentis
committedtomakingextrabudgetaryprovisionsinFY18andFY19,toensurethatPSBsremainadequatelycapitalizedto
supporteconomicgrowth.
In the Supplementary Demand passed by parliament recently, an amount of Rs.12,000 crore has already been
provided, in addition to Rs.7,940crores already provided in the budget of FY 201516. The remaining Rs.5,000 crore
wouldbeprovidedinthesecondSupplementarylaterthisyear.ThemannerofallottingRs.25,000crorecapitalthisyear,
asannouncedearlier,isasfollows:
Tranche1:
About40%ofthisamountwillbegiventothosebankswhichrequiresupport,andeverysinglePSBwillbebroughttothe
levelofatleast7.5%byFinancialYear2016.
Tranche2:
40%capitalwillbeallocatedtothetopsixbigbanksviz.SBI,BOB,BOI,PNB,CanaraBank,andIDBIBankinorderto
strengthenthemtoplayavitalroleintheeconomy.
Tranche3
The remaining portion of 20% will be allocated to the banks based on their performance during the three quarters in the
current year judged on the basis of certain performance. This will incentivize them to improve their performance in the
currentyear.Eightbankswhichdidnotgetanymoneyinfirsttwotranchewillgetpreference.
As per the calculations done for Tranche 1 and Tranche 2, the specific capital allocation for each Bank is worked out as
follows.Thisamountwouldbereleasedsoon.
CapitalAllocation
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S.No
1
2
3
4
5
6
7
8
9
10
11
12
13
Total
NameofBank
StateBankofIndia
BankofIndia
I.D.B.I.
BankofBaroda
PunjabNationalBank
CanaraBank
IndianOverseasBank
UnionBankofIndia
CorporationBank
AndhraBank
BankofMaharashtra
AllahabadBank
DenaBank
(Rs.inCrore)
5531
2455
2229
1786
1732
947
2009
1080
857
378
394
283
407
20088
ThisdoesnotincludetheallocationofremainingRs.5,000crorewhichwillbedecidedonlyinthefourthquarterof
FY2016afterlookingattheperformanceofvariousbanksinthefirstninemonthsofFY2016.EightBankswhichdidnot
getanycapitalinfirsttwotranchewillgetpreferenceinthirdtranche.
TheBankscanalsoraisecapitalfromthecapitalmarkets.
(D)(a)DestressingPSBs
TheinfrastructuresectorandcoresectorhavebeenthemajorrecipientofPSBsfundingduringthepastdecades.But
duetoseveralfactors,projectsareincreasinglystalled/stressedthusleadingtoNPAburdenonbanks.Inarecentreview,
problems causing stress in the power, steel and road sectors were examined. It was observed that the major reasons
affectingtheseprojectsweredelayinobtainingpermits/approvalsfromvariousgovernmentalandregulatoryagencies,and
landacquisition,delayingCommercialOperationDate(COD)lackofavailabilityoffuel,bothcoalandgascancellationof
coalblocksclosureofIronOreminesaffectingprojectviabilitylackoftransmissioncapacitylimitedofftakeofpowerby
Discomsgiventheirreducingpurchasingcapacityfundinggapfacedbylimitedcapacityofpromoterstoraiseadditional
equity and reluctance on part of banks to increase their exposure given the high leverage ratio inability of banks to
restructure projects even when found viable due to regulatory constraints. In case of steel sector the prevailing market
conditions, viz. global overcapacity coupled with reduction in demand led to substantial reduction in global prices, and
softeningindomesticpricesaddedtothewoes.
Ameetingwasheldon28thApril,2015atMumbaifirstwithallthebanksandconcernedMinistriestounderstand
theproblemsforeachsector.Subsequently,meetingswereheldwithprojectpromotersofsteel,powerandroadsectorsat
variouslevelstounderstandfurtherthepainpointsofeachandeverysector.Someoftheactionsproposed/undertaken
afterthesemeetingsareasfollows:
(i)ProjectMonitoringGroup(Cab.Sectt.)/RespectiveMinistrieswillpursuewithconcernedagenciestofacilitate
issueofpendingapproval/permitsexpeditiously.
(ii) Pending policy decisions to facilitate project implementation/operation would be taken up by respective
Ministries/Departments.
(iii)MinistryofCoal/PNGwillevolvepoliciestoaddresslongtermavailabilityoffuelfortheseprojects.
(iv)RespectiveDiscomswillbeprovidedhandholdingtowardsenablingearlyreforms.
(v)Promoterswillbeaskedtobringinadditionalequityinanattempttoaddresstheworseningleverageratioof
these projects. Wherever the promoters are unable to meet this requirement, the Banks would consider viable
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optionsforsubstitutionortakingovermanagementcontrol.
(vi) Thepossibilityofchangingtheextantdutyregimewithoutadverselyimpactingthedownstreamuserindustry
would be considered by the Government. The decision to increase import duty on steel has already been
taken.
(vii) RBI has been requested to consider the proposal of the Banks for granting further flexibility in
restructuringofexistingloanswherevertheBanksfindviability.
(D)(b)StrengtheningRiskControlmeasuresandNPADisclosures
BesidestherecoveryeffortsundertheDRT&SARFASImechanismthefollowingadditionalstepshavebeentaken
toaddresstheissueofNPAs:
i. RBIhasreleasedguidelinesdated30January,2014forEarlyRecognitionofFinancialDistress,Prompt
StepsforResolutionandFairRecoveryforLenders:FrameworkforRevitalizingDistressedAssetsinthe
Economysuggestingvariousstepsforquickerrecognitionandresolutionofstressedassets:
CreationofaCentralRepositoryofInformationonLargeCredits(CRILC)byRBItocollect,store,
anddisseminatecreditdatatobanksoncreditexposuresofRs.5croreandabove,
FormationofJointLendersForum(JLF),CorrectiveActionPlan(CAP),andsaleofassets.The
FrameworkoutlinesformationofJLFandcorrectiveactionplanthatwillincentiviseearlyidentification
ofproblemcases,timelyrestructuringofaccountswhichareconsideredtobeviable,andtakingprompt
stepsbybanksforrecoveryorsaleofunviableaccounts
ii. FlexibleStructuringofLoanTermProjectLoanstoInfrastructureandCoreIndustriesRBIissued
guidelinesonJuly15,2014andDecember15,2014
Long term financing for infrastructure has been a major constraint in encouraging larger private sector
participation in this sector. On the asset side, banks will be encouraged to extend long term loans to
infrastructuresectorwithflexiblestructuringtoabsorbpotentialadversecontingencies,(alsoknownas
the5/25structure).
iii.WilfulDefault/NonCooperativeBorrowers:
RBI has now came out with new category of borrower called NonCooperative borrower. A noncooperative
borrowerisaborrowerwhodoesnotprovideinformationonitsfinancestothebanks.Bankswillhavetodo
higherprovisioningiftheygivefreshloantosuchaborrower.
Freshexposuretoaborrowerreportedasnoncooperativewillnecessitatehigherprovisioning.Banks/FIsare
requiredtomakehigherprovisioningasapplicabletosubstandardassetsinrespectofnewloanssanctionedto
suchborrowersasalsonewloanssanctionedtoanyothercompanythathasonitsboardofdirectorsanyofthe
whole time directors/promoters of a noncooperative borrowing company or any firm in which such a non
cooperativeborrowerisinchargeofmanagementoftheaffairs.
iv.AssetReconstructionCompanies:
Takingfurtherstepsinthearea,RBIhastightenedthenormsforAssetReconstructionCompanies(ARCs),vide
guidelinesdatedAugust5,2014,wheretheminimuminvestmentinSecurityReceiptsshouldbe15%whichwas
earlier5%.ThisstepwillincreasethecashstakeofARCsintheassetspurchasedbythem.Further,byhaving
morecashupfront,thebankswillhavebetterincentivetocleantheirbalancesheet.
v.EstablishmentofsixNewDRTs:
Government has decided to establish six new Debt Recovery Tribunals (DRT) (at Chandigarh, Bengaluru,
Ernakulum,Dehradun,Siliguri,Hyderabad)tospeeduptherecoveryofbadloansofthebankingsector
(E)Empowerment:
TheGovernmenthasissuedacircularthattherewillbenointerferencefromGovernmentandBanksareencouragedto
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taketheirdecisionindependentlykeepingthecommercialinterestoftheorganisationinmind.Acleanerdistinctionbetween
interferenceandinterventionhasbeenmade.Withautonomycomesaccountability,accordinglyBankshavebeenaskedto
buildrobustGrievancesRedressalMechanismforcustomersaswellasstaffsothatconcernsoftheaffectedareaddressed
effectivelyintimeboundmanner.
TheGovernmentintendstoprovidegreaterflexibilityinhiringmanpowertoBanks.TheGovernmentiscommittedto
providerequiredprofessionalsasNoDstotheBoardsothatwellinformedandwelldiscusseddecisionsaretaken.
(F)FrameworkofAccountability:
(a)ThepresentsystemforthemeasurementofbanksperformancewasasystemcalledSoIStatementofIntent.Basedon
certain criteria decided by Ministry of Finance, the banks used to come up with their annual target figures which was
discussedbetweentheMinistryandbanksandfinalized.Theentireexercisetookverylongandsometimesthetargetsfor
banksusedtobefinalizedonlytowardstheendoftheyearwhichisnotadesirablethingtodo.Therearetwochangeswe
aremakinginthis:
(i)AnewframeworkofKeyPerformanceIndicators(KPIs)tobemeasuredforperformanceofPSBsisbeing
announced.Itisdividedintofoursectionstotalingupto100marks.25markseachareallottedtoindicators
relatingtoefficiencyofcapitaluseanddiversificationofbusiness/processesand15markseachareallotted
forspecificindicatorsunderthecategoryofNPAmanagementandfinancialinclusion.Thetotalmarksto
beallottedforquantifiable,measurablecriteriais80.
(ii) The remaining 20 marks are reserved for measurement of qualitative criteria which includes strategic
initiatives taken to improve asset quality, efforts made to conserve capital, HR initiatives and
improvement in external credit rating. The qualitative performance would be assessed based on a
presentationtobemadebybankstoacommitteechairedbySecretary,DepartmentofFinancialServices.
ThenewframeworkforKPIsisinthedocket.
OperatingperformanceevaluatedthroughtheKPIframeworkwillbelinkedtotheperformancebonustobepaid
totheMD&CEOsofbanksbytheGovernment.Thequantumofperformancebonusisalsoproposedtoberevisedshortly
tomakeitmoreattractive.WearealsoconsideringESOPsfortopmanagementofPSBs.
(b)DFShasissuedacirculartoPSBslayingdownstricttimelinesforfilingofcomplaintsoffraudcaseswithCBIaswell
asformonitoringeachandeverycasealmostonadaytodaybasis.
(c)Streamliningvigilanceprocessforquickactionformajorfraudsincludingconnivanceofstaff.RBIhasissuedguidelines
inMay,2015tostreamlinetheframeworkfordealingwiththeloanfrauds.Underthenewguidelines,atimeframeofsix
months,redflaggingofaccounts,constitutionofaRiskManagementGroup(RMG)inbankstomonitorpresanctionand
disbursement, nodal officer for filing complaints with CBI, provisioning in four quarters and creation of Central Fraud
Registryhavebeenlaiddown.DepartmentofFinancialServices(DFS)hasdirectedPSBstomakeCVOasthenodalofficer
forfraudexceedingRs50crore,inconsortiumlendingtheleadbankwillfiletheFIRforallbanksandCBIhasdesignated
oneofficerforreviewingandmonitoringprogressofbanksfraudcases.
(G)GovernanceReforms:
The process of governance reforms started with Gyan Sangam a conclave of PSBs and FIs organized at the
beginning of 2015 in Pune which was attended by all stakeholders including Prime Minister, Finance Minister, MoS
(Finance),Governor,RBIandCMDsofallPSBsandFIs.Therewasfocusgroupdiscussiononsixdifferenttopicswhich
resulted in specific decisions on optimizing capital, digitizing processes, strengthening risk management, improving
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managerial performance and financial inclusion. The decision to set up a BankBoardBureau which was subsequently
announcedintheBudgetSpeechofHonbleFinanceMinister,cameoutoftherecommendationsofGyanSangam.Also,at
thisconclave,HonblePrimeMinistermadeasignificantpromisetothebankersthattherewouldbenointerferencefrom
anyGovernmentfunctionaryinthematteroftheircommercialdecisions.
ThispromiseofHonblePrimeMinisterwasimmediatelytranslatedintoacircularissuedtoallbanksassuringthem
ofnointerferencepolicy,butatthesametimeaskingthemtohaverobustgrievanceredressalmechanismforborrowers,
depositorsaswellasstaff.TheGyanSangamrecommendationsincludedstrengtheningofriskmanagementpractices.
EachbankagreedtonominateaseniorofficerasChiefRiskOfficerofthebank.AspecialtrainingprogrammeforChief
RiskOfficerswasrecentlyorganizedbyCentreforAdvancedFinancialResearchandLearning(CAFRAL).
The Government has been constantly engaging with the Banks through review meeting and sessions for strategic
reviewsetc.ThefocusisonimprovingHRmanagementpracticesandremovingbarrierssothattheBankscanshareand
worktogetheroncommonresources.VariousstepshavebeentakentoempowerBanksBoards.
Continuing with this years Gyan Sangam, next Gyan Sangam will be held between 1416.01.2016 to discuss
strategy with top level officials. Further, scheme of ESOPs for top management is under formulation. Other strategic
initiativessuchasconsolidationetc.needtobediscussed.
The Indradhanush framework for transforming the PSBs represents the most comprehensive reform effort
undertaken since banking nationalisation in the year 1970. Our PSBs are now ready to compete and flourish in a
fastevolvingfinancialserviceslandscape.
DetailsofnewlyappointednonexecutiveChairmanofPSBs
NameoftheBank
Name
Age
Present/LastPositionheld
BankofBaroda
RaviVenkatesan
51yrs
IndependentDirector,Infosys
BankofIndia
GPadmananbhan
60yrs
RetiredEDofReserveBankofIndia
CanaraBank
TNManoharan
59yrs
Director,TechMahindra,PublicHealth
Foundation
VijayaBank
GNarayanan
66yrs
RetiredED,IndianOverseasBank
IndianBank
T
C
Subramainian
V 66yrs
RetiredCMD,EximBank
DetailsofnewlyappointedMD&CEO
NameoftheBank Name
Age
PresentPosition
BankofBaroda
53yrs
MD & CEO of VBHC Value

HomesPvtLtd.
PSJayakumar
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BankofIndia
M.O.Rego
56yrs
Deputy Managing Director, IDBI

Bank
CanaraBank
RakeshSharma
57yrs
MD & CEO, The Laxmi Vilas

BankLtd
IDBIBankLtd
KishoreKharatPiraji
56yrs
ExecutiveDirector, Union Bank of

India
Punjab
Bank
National Smt.
Usha 56yrs
Ananthasubramanian
CMD,BhartiyaMahilaBank
KEYPERFORMANCEINDICATORSFORPUBLICSECTORBANKS
A.QUANTATIVEPARAMETERS:
Parameter
Maximum
marks
Improvement required to
get full marks compared
topreviousyear
20bps
300bps
10bps
250bps(reduction)
Efficiencyofcapitaluse
25
a ReturnonAssets
10
b ReturnonEquity
5
c NIM(Domestic)
5
d Cost (Overhead) as % of total
2.5
income*
e Cost (Expenses / provision for
2.5
100bps(reduction)
employees)as%oftotalincome*
*Totalincome=NetInterestIncome+TotalotherIncome.
Growth/Diversification of business /
25
processes
a Fee Based Income as % of total
7.5
200bps
income**
b Increase in Retail Credit as % of total
7.5
300bps
credit
c Increase in number of Transactions
5
500bps
through alternate channels as % total
transactions
d SavingBank:Improvementinsharein
5
100bps
totaldeposit
**Totalincome=Interestearned+TotalotherIncome
NPAManagement
a Impaired Assets as % of gross
advances
b Increase in Cash Recovery as % of
openinggrossNonPerformingAssets
15
10
100bps(reduction)
1000bps
FinancialInclusion
a Zero Balance in total PMJDY
accountsopenedbytheBanks
b For PMJDY Accounts : % of active
RupayCardvisvistotalRupayCard
issuedbytheBanks
15
2
Lessthan20%
Above10%
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3/1/2016
c %ofeligiblePMJDYAccounts,asper
2
Above20%
IBA guidelines, disbursed overdraft
facilitybytheBanks
d AADHARseedingofBankAccounts
2
Above75%
e Share in enrolment in 3 Social
2
Share in Social Security
Security Schemes visvis Banks
Schemesequaltoorgreater
shareinDeposits(ascomparedtototal
thanDepositshare.
ofPSBs)
f Achievement of targets set under
2
Above75%
PradhanMantriMudraYojna
g Growth in Housing Loans under
2
Increase of 5% in total
PrioritySectorascomparedtogrowth
loans
ingrossBankcredit
h Growth in disbursement of Education
1
Above20%
Loans (as compared to disbursement
inpreviousfinancialyear)
Total
80
The improvement achieved below maximum level will be evaluated on proportionate

basisofachievement.Marksobtainedinfractionwillberoundedofftonearestunit.For
FinancialInclusion,scorebelowmaximumwillbeevaluatedasperspecifiedmatrix.
B.QUALITATIVEPARAMETERS:
Parameter
A
Improvementinexternalcreditrating
Maximum
marks
5
Benchmarking
Improvement in external
rating.
B
Strategic initiative taken to improve
5
Innovativeinitiativestaken
assetquality
bymanagementtoimprove
assetquality.
C
Effortsmadetoconservecapital
5
Efforts other than capital
infusion.
D
HRinitiatives(skilldevelopmentand
5
Innovative initiatives and
talentmanagement)
rateofattrition.
Total
20
Evaluation of Qualitative Parameters will be finalised by a Committee

chairedbySecretary(FS).
GRANDTOTAL
100
**********
DSM/MAM
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MD & CEO of VBHC Value

Deputy Managing Director, IDBI

MD & CEO, The Laxmi Vilas

ExecutiveDirector, Union Bank of

The improvement achieved below maximum level will be evaluated on proportionate

Evaluation of Qualitative Parameters will be finalised by a Committee

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