Banks’ ‘Gyan Sangam’ to discuss digitisation, consolidation at PSBs

The Hindu

 

Context

The push for digitization in the wake of demonetisation and the proposal for public sector bank (PSB) consolidation are likely to top the agenda for Gyan Sangam

 

What is Gyan Sangam?

It is the retreat for PSBs, government-owned Financial Institutions (FI) and insurance companies

 

3rd edition of Gyan Sangam

The third edition of the retreat – which will be attended by senior finance ministry officials as well as heads of PSBs, state-run FIs and insurance firms – is likely to be held in Hyderabad or Bengaluru

 

Topics to be taken up for discussion

  • Push for digitization in the wake of demonetisation: The sessions on digitization will include presentations on increasing the use of Artificial Intelligence (AI) systems and big data analytics in the banking & financial services industry in India
  • Proposal for public sector bank (PSB) consolidation
  • Credit growth slowdown: The major slowdown in credit growth – to a more than six-decade low of 5.1% for the fortnight ended December 23 – and ways to revitalize it, as well as measures to effectively tackle bad loans
    • National Asset Management Company: On bad loans, the discussions are likely to be centered on the pros and cons of the proposed National Asset Management Company (or a ‘bad bank’) – a special category asset reconstruction company with stakeholders including the government and the private sector, for takeover and turnaround of bad loans, stressed assets and restructured assets
  • Automation of middle management functions: Referring to the manpower shortage, especially in middle management in PSBs, the sources said the retreat would have discussions on automating many of these functions to ensure productivity improvement
  • Strategies for strengthening the ‘banking correspondent’-network and increasing the usage of micro ATMs and Point of Sale machines

Expediting banking reforms: The high-profile meeting will also deliberate upon the need for the autonomous Banks Board Bureau (BBB) to expedite banking reforms including PSB consolidation

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