Indian Banking Sector is facing a challenges for the very long time.Rising NPS , Falling NIIs , Loan Defaults, Industrial slow down all playing spoil sport for the banking sector performance specific to Public Sector . Government for long was planning to infuse capital in these units as the sector is the back bone of the economy .
In Keeping the challenges in the view Government announces a Seven Point program named " Indradhanush" to revive the performance of PSU Banks:
The Seven color of Indradhanush Includes:
- Appointments
- Board of Bureau
- Capitalization
- DE-Stressing
- Empowerment
- Framework of Accountability
- Governance Reforms
Banks Board will handle the existing appointment board , Board will have 3 members each from government and private sector banks .The Board will be operational from April 2016.The members will be headed by the RBI governor and the appointment will start in next 6 months. 13 PSU banks would get Rs 20,058 Cr this financial year under recapitalization plans.The rest Rs 5,000 Cr would be allocated based on efficiency criteria. SBI will be the most beneficial of the scheme as it get highest of infusion ,Rs 5,511 Cr followed by bank of India at Rs 2,455cr, IDBI at Rs 2,229 Cr,PNB at Rs 1732cr and IOB at Rs 2009.As far as appointment concerns former Microsoft India Chairman Ravi Venkatesan as Chairman of Bank of Baroda.Other appointments include T N Manoharan as Non-Executive Chairman of Canara Bank, G Padmanabhan as Non-Executive Chairman of Bank of India.Six more Non-Executive Chairman posts to be filled in 6 months.Other strategic initiatives such as consolidation may also be announced.Rs 20,000 crore capital infusion into PSBs will be released in a month.
Government ensure that there is no need to panic as all the above steps have been taken by the government to meet the challenges and to revamp the existing condition of the Banking sector.